The accounting process involves recording, interpreting, classifying, analyzing, reporting and summarizing financial data. Bookkeeping is the process of recording financial transactions. Recording financial transactions is the first part of and the foundation of the accounting process. Bookkeepers handle the recording part of the accounting process. Accountants handle all parts of the accounting process.
The IRS may audit you due to incorrect numbers filed on your tax returns, failure to report income, or deducting too many business expenses—or, you may be selected for an audit at random. Regardless of what prompts the audit, they