Helping To Avoid Audits with Smarter Money Transfer Practices

While it isn’t illegal to send or transfer money to people in other countries, you can attract the attention of both the IRS and other legal entities if it appears that you are laundering money or hiding funds. It happens more often that you would imagine, and few people using international money transfers for unscrupulous means are good about covering up their tracks. Because of this, professionals with an online bachelors degree in accounting who advise clients who regularly send large sums of money to international business partners, suppliers, or even bank overseas, need to be highly prudent. There are several ways that you can minimize your business’s chances of being caught up in a complicated audit or a lengthy investigation, and they all start with keeping complete and transparent financial records.

Claim All Earnings When You File Taxes

 If your company gets payments in cash, check, via credit card or even money order, you have to claim everything when you file your taxes. Sometimes you can overlook a source of funding because you had limited dealings with a particular customer. On the other hand, hiring an expert with a bachelors of accounting degree to update your financial records on a weekly basis will prevent this from happening. Most companies that deal in international money transfers who run into issues with the IRS don’t update their books regularly. If you wait until right before you file your taxes to go over the stacks of paperwork that fill your office, something is going to be forgotten.

Accurately Reflect the Nature of Your Business

 Whether you primarily work in the banking industry or work as a consulting firm, you need to reveal where your earnings have come from, as well as the exact way that your company made its profits. It isn’t unusual for companies to offer several different types of services, but when it comes to having the correct type of business licenses you can’t omit important financial information. If your company needs to register for certain licenses and regulations in order to operate legally, don’t delay on taking the steps necessary for acquiring them. Not only can you get audited, you could have your business operations shut down and get hit with some very expensive fines.

Be Cautious When Listing Deductions

Only your accountant is going to know if it is best for your business to itemize deductions or not, but you may not be able to claim every deduction that you think you’re entitled to. Depending on how you do business, money transfer fees could potentially be a valid deduction. It is best to be conservative about claiming questionable business expenses unless you have gotten the green light from an expert business accountant familiar with your company.

There’s a pretty important reason that banks require customers to fill out long forms before they can send money overseas. Once it leaves the states, there’s little control over where those funds are going to end up and what purpose it is going to serve. To help protect your business, financial institutions and even the government, be completely forthright about all international money transfers.


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