We have posted other articles regarding business expense tips……..this one gives you some basics about travel, meals and entertainment…..what an auditor will look for in these expense allocations. Accounting and tax
Excerpt……….If you’re currently under audit, pay attention. If you never want to face an audit, pay attention. There are easy steps small business owners can take with their internal controls to audit-proof their business’ books.
Favorite areas that auditors like to explore are meals, travel, and entertainment expense because most people don’t know the rules for these deductions and there is widespread abuse in these areas . An examiner can pretty much guarantee a tax income stream from disallowing expenses in these categories.