When you ever received a letter from the IRS saying “You're being audited”, well…those three words have been known to make someone's blood run cold. Most people feel a big pit in their stomach when going through an audit.
I'll I've been through it THREE times. Yes…THREE TIMES.
And…guess what? While it's not at all a pleasurable experience, I never worry.
Last night's call was an eye opener for a lot of people. I can't believe how many people text messaged me last night. No…not Facebook messages. I received over 15 private text messages after last night's call from people who many of them, never even really thought too much about what was discussed last night…and now they're all making changes on how they manage the “business side” of their business.
As a follow up on something that was mentioned last night…and the simple fact that it is tax crunch time, you may want to look into this. It has to do with disappearing ink and how “of know fault of your own”, you'll lose in an audit. Here's how the short story unfolded on my call…
Scott Burnett and I were talking about the whole idea of running your business like a business…and the absolute necessity to document your business activities.
Documentation of all expenses related to building your business is a necessity if you want to take them as deductions against your business income.
Do you know how many network marketers I know that are lazy with their documentation? Too many…let's just leave it at that. To be honest with you…I'm a little scared for those people. If the IRS were to ever come calling for them with the words, “You're being audited”, I'm pretty sure those people won't be excited about their future.
No need for you to be scared…as long as you do stuff right.
Back to the story from last night…
So…Scott and I are talking about receipts. You know…the ones restaurants give you, office supply stores give you…and pretty much everyone gives you when you purchase something on your credit card for your business when you're out and about.
Well…those receipts are printed on thermal paper. Problem with thermal paper is this. It fades over time. You've seen it. Go look at a receipt in your box from a year ago. Can you even read it anymore?
Well…even if that was a legitimate expense for your business that you documented, supported and substantiated, if you can't read the receipt, it won't matter in an audit. Disallowed. No go.
The solution to that is something Scott brought up during our chat. The Tax Bot App. If you don't know what it is…it is worth every penny times a THOUSAND.
Two things you can do right now…and I wouldn't wait a second.
If you want a little more background information on the app before you get it and some more “proof in the pudding”, you can see a webinar I did with Sandy Botkin and let him explain it.
Tax Bot Webinar with Sandy Botkin Explains what Tax Bot is and why you should be using it right now.
Look…I'm certainly an expert at teaching people how to build network marketing businesses. But…I surround myself with experts that know things that I don't profess to be an expert in.
Here's what I DO know from experience:
- If you're going to run a business, you need to treat it like a business on every level. That means everything from head to toe. The way you run your business with your prospecting & business building activities, AND the way you run the “business” side of your business.
- You need to be organized and track your expenses, keep insanely good records and be totally on top of your game. Throwing a bunch of crap in a box and handing it to your accountant isn't exactly being organized now, is it?
- You need to hire a professional to help you with this stuff. Don't go to H&R Block. Find a professional to handle your stuff. Professionals aren't expensive. What IS expensive is not hiring one, getting audited and losing your ass. That's expensive.
- Be smart, don't cheat, always tell the truth. The benefit of trying to save a little money by cheating on your taxes isn't worth the consequences of being caught doing so.
Do yourself a favor…either go directly and get TaxBot… or watch the webinar, then get it. Either way, get it.
So…when and if you ever get a letter from the IRS saying “You're Being Audited”, you want have anything to worry about.
Oh…and one other thing. And…Scott doesn't know I'm putting this on my blog. But…he was kind enough to offer a free consultation for anyone who contacts him through me. I don't make a dime from referring Scott to you. If you do something with him…that's your business, and your business alone.
To contact Scott for a free consultation, you can visit his site at BurnettandAssociates.com