The following is a blurb to possibly notify clients about the importance of Bookkeeping Services, and possibly, as a marketing tool for Bookkeeping Services offered by Accountants on Air.
The Internal Revenue Service mandates that all business taxpayers MUST maintain books and records sufficient to establish the income and expenses of such business. The Internal Revenue Service is allowed to estimate the income of a business if a business fails to maintain books and records. This is known as the reconstruction of income.
The most common form of income reconstruction is referred to as the Bank Deposits Method. Such a method involves the Internal Revenue Service to look at all the business bank statements of such a business and the Internal Revenue Service may determine that all credit amounts on the monthly bank statements are INCOME even if the amounts aren’t actually income, unless there is evidence presented to the Internal Revenue Service that such credits are not income.