If you think filing invoices, tracking expenses, and keeping records isn’t that important, think again. Come tax time, the IRS doesn’t allow you to “casually” do taxes.

If you forgot to keep good records so far, the IRS does allow you to reasonably reconstruct figures and provide receipts.

Tax preparer due diligence must-do’s include asking the following questions:

  1. Do you believe your client is actually conducting a business?
  2. Does your client keep records?
  3. Are the records sufficient?
  4. Do the income and expenses seem reasonable compared to your experience with similar clients?

So be prepared to answer these questions and more when you have your tax appointment.