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At Kerry Lehane & Co we know a Revenue audit is one of the more daunting experiences for Irish business owners. It can feel like a test of everything from bookkeeping practices to tax compliance. While the process can be challenging, being prepared makes a significant difference. By knowing what Revenue looks for and how to organise your records, you can reduce stress and show that your business is operating transparently.

Understand the scope of the audit
A Revenue audit examines your tax affairs to ensure that returns have been filed accurately and in line with legislation. The scope can be wide, covering corporation tax, VAT, PAYE, or income tax. Often, Revenue targets specific areas where errors are common, such as expense claims, payroll deductions, or VAT treatment. Understanding which areas are under review helps you focus your preparation.

Gather and organise records
Revenue will expect to see clear, accessible records. This includes financial statements, tax returns, invoices, receipts, payroll files, bank statements, and contracts. Organise them by year and by category so that you can respond quickly to requests. Missing or poorly presented records can create unnecessary suspicion and extend the length of the audit.

Review your returns in advance
Take time to check your submitted tax returns for consistency. Look at areas such as deductible expenses, VAT reclaims, and director’s remuneration. If you identify errors before the audit begins, you may be able to make an unprompted disclosure, which typically reduces penalties.

Know your rights and obligations
Business owners are required to cooperate with Revenue during an audit, but you also have rights. You are entitled to clear communication, reasonable time to supply documents, and professional treatment. If you feel uncertain, an accountant or tax adviser can represent you and ensure that the process remains fair.

Plan for the outcome
Audits can result in a clean report, additional tax assessments, or penalties. Even if adjustments are required, the audit can serve as a valuable opportunity to improve systems and avoid future problems. Keep in mind that Revenue is increasingly focused on electronic record-keeping, so investing in digital systems can make compliance smoother.

Checklist for business owners

• Confirm which taxes are under review
• Organise financial and payroll records
  
• Review past returns for accuracy
  
• Consider voluntary disclosure if needed
  
• Ensure you understand your rights during the audit
  
• Put systems in place to strengthen compliance going forward
  

Being prepared for a Revenue audit is not only about surviving the process. It is about building confidence that your financial practices can stand up to scrutiny, which is essential for the long-term health of your business.

If you would like to discuss your business needs. Call Kerry Lehane & Co Accountants on 023 8856054 or email info@kerrylehane.com

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