Documentation is critical in your business. Hopefully, you will never be audited, but if you are, you will need to produce that documentation to substantiate what you are claiming on your income tax returns.
As a virtual bookkeeping firm, we receive almost all documentation electronically. ZümiFi’s best practice is to attach that documentation WITHIN QuickBooks Online. All documentation, if possible. So if there is a vendor W9 form, that gets attached to the vendor profile in QuickBooks Online. If there is a vendor bill, that gets attached in QuickBooks Online. If there is a credit card expense, that gets attached as well. Even copies of client check payments are attached within QuickBooks.
Why do we do this?
Well, first it’s really quick and easy to do. Second, it makes it super easy to discuss any questions that may arise from entries because everyone can easily see the source document associated with that. This is an amazing opportunity in QuickBooks Online, and more and more we see the benefits of using this!
ZümiFi – Sweating the Details!