Posted on 08/10/2013 9:39:44 AM PDT by reaganaut1
Just wrapped up an audit. Ended up costing me about a grand. They dinged me on my mileage.
I could account for every nickel that came into the business. It would have been a nightmare had I not kept very good records.
But the interesting thing was that the file was opened in May 2012. They never contacted me until March 2013.
The IRS is also extorting money by offering settlements to end audits..”this could all be over if you just give us $5000”..to qoute one auditor.
Sales trends for years has been more plastic (credit and debit cards) and less checks and cash.
Ever notice how Chinese restaurants don’t (usually) ring up your purchase? I am sure it’s because they don’t report what they earn. They buy enough food supplies to make 3500 meals and only sell 545 per week. Gosh. LOL
I’m in your boat.
Cash flow? What cash flow?
Almost all business is done in cards.
I think that is extortion. I would be tempted to forcibly place them under citizens arrest!
My wife’s temple got one of these. It scared the crap out of the clergyman. He’s sent them a copy of all of his receipts for the collections.
That’ll ruin your credit score if you fail to repay the loan. One wouldn’t even be able to get an apartment with a score of 400.
Not no, but, HELL NO!!!
I have been a bookkeeper or done accounting all of my life.
I have been self-employed since 1980 or so & am now 73, still with 2 clients.
I personally have seen more and more credit card usage for a number of reasons:
1. Too dangerous to carry cash. Crime is everywhere.
2. Credit cards give ‘points’ on purchases and you cannot build up those points with cash.
3. The entire thrust of usage of debit cards has been to increase all those small fees the bank gets. The younger generation just doesn’t realize how much it is costing them in small fees to constantly use their debit cards.
4. A vendor taking a credit card doesn’t have the hassle of dealing with bounced checks or counterfeit bills.
It is no longer safe to make a trip to the bank to make a deposit which has lots of cash involved. Your movements are too easily tracked & you become a target.
In general, ALL my clients have gone thru a reduction of gross sales of as much as 45% under the economy of 2008 forward. Both of my remaining clients have carved out ALL employees & only have themselves on payroll. IF they need a day laborer—they call Labor Ready.
In some cases, the reduction of gross income, followed closely by the permanent layoff of prior employees, actually left a few small companies with a higher net profit. Many finally realized what I had been saying for years——you are not working hard for yourself———
You have been working hard for YOUR EMPLOYEES. They go home with 40 hours of labor & you are putting in 60 hours or more a week. They have paid holidays—vacations—& benefits some of which YOU do NOT have.
Thru the years, I did more than one work-up of info for a small business owner to show him he would do better without employees.
However, I do agree that most small business owners are Conservative & this is another threat to them from Obama.
Either have all your records squeaky clean or have a fire.
When you look at the litany of things libs want employers to do for employees, it is like you are adopting them. They do not realize that being an employer is a voluntary act. If you make it too onerous, people will find other ways to get done what employees used to do, or opt out entirely.
meanwhile, it is said to be sequestration that is delaying refunds due to seniors (who qualify with high medical expense deductions way over the % AGI limitations).
They are.
Democrats hate small business owners. They are to the Democrats what the Kulaks (small farm private landowners) were to the Marxists during the Russian Revolution.
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