Growth brings more transactions, more vendors, more systems, and more tax exposure. The companies that handle audits best are usually the ones that maintain evidence continuously.
Keep explanations close to transactions
When a transaction is unusual or material, document the commercial reason while the context is still fresh. This is especially important for related-party charges, management fees, and large one-off expenses.
Create a monthly audit file
- Tax returns and payment evidence
- Invoice listings and exceptions
- Bank and ledger reconciliations
- Contracts for material transactions
- Management explanations for significant movements
