Good article for those with farmer clients

[kcjenkins]

http://smallbusiness.foxbusiness.com/finance-accounting/2012/06/27/what-farmers-need-to-know-about-audits/

I think this might be a good one to print out and give to any farming clients, if only to make them appreciate you a bit more when they think of whether they would want to go through an audit such as is described, without your guidance.

[rfassett]

Thanks KC. Good article. One of my farm clients went through an audit last year - a very large dairy farmer. The audit started in January 2011 and wrapped up with "no change" in January 2012. I knew it would come out that way because we keep the books for the farmer. The thing that prompted the audit, according to the auditor, was the huge reduction in revenue from the year previous to the audit year. Very early on, I suggested the auditor check the historical milk prices but apparently he did not think that had any impact because he kept digging. I told the client, who is in his 70's, to give the auditor, who was in his perhaps late 20's, to give the auditor "a tour" of the farm. I think that sealed the deal. :)

[kcjenkins]

Yes, often, especially when a client has specific 'special' circumstances, getting the auditor 'on site' can be an advantage. Had one where the client, who had a third grade education, was worth pretty big bucks, but his lifestyle was not 'normal', and I could never have explained the client to the auditor. But having her go out and actually see his two-bedroom home, which was heated with two wood-burning potbellied stoves, only, and his only vehicles were both over 10 years old, and looked it, caused her to better understand how he was able to have the income he reported, and still be able to save the money he had in the bank, I think without that visit, the audit would have lasted three times as long.