Tips from an IRS audit: filing receipts

For the years that I've been using Quickbooks for my business, I enter my receipts into the computer and then file them alphabetically by vendor. This made sense to me until I had an audit last year. My auditor suggested I start filing my receipts by category... this definitely could simplify things in an audit situation. When I was audited, I was helpless without my Quickbooks report... there was lots of cross-referencing and searching. This could still be true, but since my auditor suggested this method, I figured it was worth a try.

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