You can get audited at any time, by the IRS, or any one of a number of federal, state and local government organizations. If you do, you’ll be hunting through paper files, computer files, financial account statements and miscellaneous receipts in search of all the documentation you need to justify your numbers. The thought of it sends fear down the spine and distress through the digestive system. But it doesn’t have to.
Maintaining good AP records is essential, so you have an audit trail—all the information an auditor might request, such as banking statements, purchase orders, invoices, vouchers, delivery notes, receipts and communication with your vendors. This objective, verifiable data gives a step-by-step history of each transaction, and leaves nothing open to question.
Clear audit trail information is as useful for you as it is for any potential auditor. It provides evidence of your legitimate transactions if you ever need to prove fraud. It protects you against employees who may be tempted into fraudulent practices. It also comes in handy when lenders or investors request financial information.
An automated AP system like Paybox keeps those records digitally organized with a trail and easily accessible any time. Paybox conforms to the IRS guidelines on business record keeping, so if you do get audited, your records are set up to make the process go as quickly, efficiently and painlessly as possible.