Recently, more audits of retail businesses have taken place throughout Texas.  One of the most common problems small retain businesses that are going through an audit face, is lack of proper record keeping.  Although most  retail businesses should have proper documentation on its daily sales, some do not have adequate accounting source documents and procedures to withstand a Texas Comptroller audit of its sales and use taxes. Bajaria Law routinely assists clients with audits for businesses in the Houston, Dallas-Fort Worth, and Austin metropolitan areas, including suburbs such as Plano, Sugarland, Katy, Stafford, Richardson, Arlington, Irving, and Garland.

To prepare and come out ahead of an audit, a retail business should at least have the following procedures and accounting tools in place:

1.  Daily, weekly and monthly cash sales journal;
2.  Cash register use of z tapes and backup of daily z tapes either electronically or on paper;
3.  Detailed journal of purchases of beer, cigarettes, and other purchases from ite vendors;
4.  Matching bank deposit slips to daily sales journal;
5.  Correct monthly, quarterly and yearly reporting to Texas Comptroller;
6.  Proper accounting and remittance of sales taxes collected and remitted to the Texas Comptroller;
7.  Reconciled ledgers; and
8.  Proper financial reporting in place, including profit & loss statements, balance sheets and statement of
cash flow.

If you are facing a Texas Comptroller Audit of sales and use tax, or local tax, contact an experienced Texas Comptroller sales and use tax attorney at Bajaria Law Firm, PC.

Please visit the following links for additional information:

Texas Comptroller of Public Accounts

Bajaria Law Firm, PC Services