I have mentioned to many of you the ongoing need to keep your business Credit Card, Debit Card and other cash receipts for expenses.  With the identification of many of these transactions on your credit card and bank statements, many people have begun to disregard the need to maintain receipts.  As I have been reminded again and again at recent conferences and accounting seminars, we must make sure that our clients are aware of the need to continue the practice of keeping good records of these receipts.  The need is even more important for big-box stores such as Home Depot, Walmart or other chain stores.  While your statement will indicate a purchase at this location, it does not identify the items purchased that could later be denied in an audit as a non-business expense.  Amazon purchases can be tracked at the website, however maintaining receipts and making sure that the coding in your accounting system is accurate will enhance the integrity of any future audit.

Penalties for errors are up to $260 per W-2 in 2018 and $270 in 2019.  The maximum limits will not affect small businesses. 

It is the perfect time of the year to review Employee and Vendor records for all individuals who will receive a W-2 or a 1099 at the end of the year.  Request that employees verify social security numbers and addresses.  Make sure that you have received a W-9 from all businesses or individuals who need to receive a 1099 from you for 2018.  Please contact me if you are not sure who should receive 1099's from you in January.