How to Audit Proof Books if Downloading Banking Transactions
Your article opens with these comments:
"I love QuickBooks online banking! It is so much easier to use than entering individual transactions for checking and credit card accounts.
It's great if you use your ATM card or credit card a lot, because you won't have to enter the transactions manually. Download once or twice a month to keep account balances current in QuickBooks."
Doesn't this put you at risk, if you are ever audited, that you might not have supporting documents to back up the downloaded and booked transactions? What kind of procedures should be put in place in addition to using online banking to ensure your books are audit proof?
Excellent question. I don't necessarily agree that it puts one AT RISK of an audit. The risk is only if receipts (aka supporting documentation) are not kept. As long as receipts are kept, then there should be no fear of an audit.
But I think you are striking on a chord everybody should remember:
Just because transactions are DOWNLOADED does not mean they will stand up to scrutiny during an audit.
All receipts MUST be kept! Make sure you save all receipts and file them in a safe place, so that if you're ever audited, you can locate the receipts and support your deduction.
Really REALLY good question! Thanks for bringing it up.