Accounting & Bookkeeping

Bookkeeping That Keeps You Out of IRS Trouble

Bad books don’t just make tax season harder. They’re one of the most common ways business owners end up owing the IRS. When your accounts aren’t reconciled and you don’t have a clear read on cash flow, it becomes easy to dip into money that was never yours to spend, including payroll tax withholdings you were required to deposit.

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Common Bookkeeping Problems We See

• Commingled personal and business expenses with no clear separation
• Months or years of unreconciled bank and credit card accounts
• Payroll tax deposits missed or made late because cash flow wasn’t tracked
• No system for setting aside withheld employee taxes before they get spent
• Deductions that can’t be substantiated because there’s no record behind them
• Books that are months, or years, behind

If any of this sounds familiar, you’re not alone, and you’re not the first business owner we’ve helped dig out of it.

Monthly Bookkeeping and Catch-Up Services

We provide ongoing monthly bookkeeping for businesses that want to stay current and stay clean going forward. We also handle catch-up bookkeeping for business owners who have fallen behind, whether that’s a few months or several years. Getting your books current isn’t just about organization. It’s often the first step toward resolving a tax problem, since the IRS and most resolution programs require accurate, up-to-date financial records before they’ll even consider an agreement.

Why Your Books Matter More Than You Think

Here’s what most business owners don’t realize until it’s too late: the money withheld from an employee’s paycheck for income tax and FICA isn’t your money. It’s called a trust fund tax, and the IRS treats it differently than ordinary business debt. If those withholdings get spent on other expenses because the books didn’t make clear what was available, the IRS can pursue the responsible individuals personally, not just the business, through what’s called the Trust Fund Recovery Penalty.

Clean books are what stand between a business owner and that kind of personal liability. When your records clearly show what’s owed, what’s been paid, and what’s been set aside, you have the documentation to prove good faith if the IRS ever comes asking.

Why Work With Former IRS Agents on Your Books

Our bookkeeping clients are supported by Enrolled Agents whose leadership includes professionals who spent years working inside the IRS, often reviewing the exact financial statements (Forms 433-A and 433-B) that get pulled during a collection investigation. We know what a Revenue Officer looks for when evaluating a business’s ability to pay, and we make sure your books hold up to that kind of scrutiny well before it ever happens.

Behind on your books, worried about payroll tax deposits, or just want a system that keeps you out of trouble going forward? Request a Consultation from our experienced team today, and we’ll go over your situation and outline your options.

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