Reviewed and updated October 16, 2026
1–2. Missing deposits and mixed spending
Match customer receipts to bank deposits and payment-processor reports. Identify refunds, transfers and loans before classifying income. A platform’s net payout can conceal fees or sales tax, while a loan deposit can inflate revenue if coded incorrectly.
Keep personal expenses separate. Review owner payments and reimbursements each month so they do not disappear into miscellaneous expenses. A payment made from a business account still needs a business purpose.
3–4. Payroll and sales-tax mismatches
Reconcile payroll registers, tax liabilities and payments. Verify that wage forms agree with the ledger after year-end adjustments. A payroll provider does not remove the owner’s need to review notices and filing confirmations.
For Georgia sales and use tax, compare taxable sales, exemptions and amounts collected with the applicable returns. Atlanta-area businesses should confirm their actual location and the sourcing of transactions; a city name alone does not establish the correct tax treatment.
5–6. Unsupported costs and unfinished reconciliations
Store receipts and asset invoices with their purpose and date. Review equipment, inventory and startup spending separately because tax treatment may differ from ordinary expenses. Reconcile each bank and credit-card account before preparing financial statements.
An IRS notice can result from many causes, including information-return differences; these bookkeeping problems do not guarantee one. If a notice arrives, compare its specific issue with the return and supporting records. Bring the notice, filed return and reconciliation to your preparer instead of changing entries simply to make a total match.
Official sources
This guide provides general information. The rules depend on the tax year, jurisdiction and your circumstances. Ask our team which filing or planning steps apply to you.
