Many small businesses get their financial prepared by bookkeeping and accounting services. Some of them are happy to just see their monthly financial statements from their accountant. The accountant's office enters the data into an accounting system, often Quickbooks, and then provides the output to the client.
Who do you think the data belongs to? If a company is audited by IRS they are required to provide complete details of the various items reported on the financials. If the Quickbooks file is with the accountant, you would need to obtain that or the accountant will have to furnish it to the IRS.
That is true. IRS now has implemented new rules where the auditors will require the accounting records in electronic format - the Quickbooks file that has all your data can be requested by IRS and you have to furnish.
Do you have possession of your accounting records? Do you have a back up of your accounting records in electronic format with you?
Don't just get happy with your monthly financial statements, ask for the electronic backup of your data each month from your CPA or accountant.
It's time a small business owner becomes a demanding client for CPAs.
