Audit Day
AUDIT DAY
Last month we received a letter at work from the State Sales Tax division. It was telling us we were being audited and would need all records from 2013, 2014, 2015, and up to February for 2016.
Say what?? I have three weeks to find three years of receipts, bank records, bank stubs, invoices paid and received, copies of tax returns, and copies of sales tax returns. We started our decorating business way back before computers where even thought of and I’ve always done my record keeping in a hand written ledger.
I methodically put each year together and last Monday was the day the auditors visited us at our shop. We got to the shop early, I put the ledger book, the tax returns in a row and behind each year I had the invoices and bank records.
I stepped back and was impressed at how organized I looked. 9:00 am rolled around and the two auditors came in right on time. First they asked a few questions to get to know a little about the business, how long we’ve been in business, did we do our own returns, etc.
One of the auditors asked if I use Quick Books, I told her no. Then she asked what form of record keeping do I use, I told her paper and pencil! I have never computerized the business, I figured I’ve been doing it the same way for almost 50 years so why start something new when I got it down. Both auditors started going through the invoices one by one. I’m thinking, this is going to take all day, and all day it did! They took a 45 minute lunch break, came back and said if they didn’t finish today, they would come back tomorrow. I politely said we have appointments in the morning so stay as long as you want today. They left about 4:00 pm and said they would be in touch in a few days.
A few days came and went, we heard nothing. Now I’m getting worried, did I do something wrong? If so, tell me what. She called Friday and said they would be back the following Monday with the results. Oh great, I have to bite the nails all weekend!
Monday morning rolls around, they are here like clockwork. She had an envelope, said they usually mail it but since they were here, they brought it with them. Sloooooowly I open the envelope, as doing so she says, it’s the letter stating that the audit is closed and you have been doing everything correctly and everything tallies up perfect. They were both amazed at the accuracy of my hand written record keeping. Said I was totally organized and should never change the way I’m keeping the records. Phew!
For a week, I must admit I was a bit nervous, mostly because I wasn’t sure they would be able to figure out my cave man record keeping. After 12 hours with them and one week waiting, I finally stopped biting my fingernails. The two ladies, shook hubby’s and my hand, said nice meeting both of you and left very impressed, partly from the record keeping and partly for how long hubby and I have been in business together. Heading for 51 years, wonderful years they are.
As you know, I am computerized. And, even if my clients use shoeboxes (yes, they really do), I computerize their information. Because I DETEST paper.
But, any audit- no matter how perfect your books- inspires dread. Unless, of course, it’s the one where the IRS miskeyed your 1099 and said you failed to report 25312312.00 worth of income. (Yes, it was just 253123.12.)
I guess I’m “old school” Roy, I have been doing pencil and paper over 50 years and I got it down! WOW, that’ miskey would be enough to make me pass out! LOL Thanks for stopping by.
What a fantastic pencil pusher the state was so impressed this can and does it all
With the help of me sweetie. <3
When you do things, ‘The RIght Way’ there is no need to change anything! We often get ourself in a tizzy and worry about things that are fine. Nice to hear it was a (relatively) easy experience for you, Martha!
When I hear the word “audit” I panic even knowing I’m doing everything correctly. There is always a chance of adding or subtracting wrong but I passed the test! Thanks for stopping by.
WHEW!!!! I was holding my breath as I read this …I tell what!!! Thank goodness all is well!!
I was holding my breath for a week Terry! Thank goodness I was able to start breathing again Monday! LOL Thanks for popping in.
I hate audits! Working in the plant hire business as I do (machinery, not flowers!) audits are a frequent, necessary nuisance and my depot never gets a clean bill of health first time – we usually have to do a search for some missing items and that can take ages searching shelves of drills, grinders and extension leads for the missing item! Lucky you!
Oh my, that must be nerve wracking searching for the missing items. We have never had an audit so I didn’t know what to expect but it had a happy ending. Thanks for visiting Bill.
Nice job! And congrats to you. I would have been a nervous wreck!
Thanks Beth! I knew I had always paid my taxes on time but not having everything “neat and tidy” was worrying me. We do everything the old fashion way, paper and pencil! Thanks for stopping in.