Audit readiness checklist
Six practical steps most small business owners follow before sharing books with a CPA or responding to a government notice.
WorkMinty publishes general educational information for small business owners. It is not tax, legal, or accounting advice. Tax rules change and vary by state and situation. Consult a qualified CPA, enrolled agent, or attorney before making decisions or responding to a government audit.
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Separate business and personal finances
Use a dedicated business bank account. Owner contributions and draws should be intentional—not mixed with personal spending.
ClearLedger: owner contribution wizard and transfer categories.
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Label every transaction
Assign a category to each charge and deposit. Uncategorized transactions are the fastest way to fail an export—or draw examiner questions.
ClearLedger: transactions list, label rules, monthly close.
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Classify workers correctly
Decide W-2 vs 1099 before the first payment. California employers face both IRS and EDD rules.
Payroll Calculator: employee type; ClearLedger: contractor categories.
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File and pay payroll taxes on time
Quarterly wage reports and deposits must match your payroll registers.
Payroll Calculator: pay runs and tax reports.
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Keep proof for large deductions
Receipts, contracts, mileage logs, and notes support expenses under audit.
ClearLedger: attachments on transactions.
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Self-review before your CPA
Run your own consistency checks: 1099 totals, transfers, loan payments, and review queue cleared.
ClearLedger: reports export; tax self-audit (coming soon).
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