Why this matters
Insurance remittances, patient refunds and merchant settlements can complicate revenue records. Large equipment purchases and practice acquisitions require careful classification and timing. Payroll and benefits can affect both the entity and its owners.
Example
A practice buys equipment with a loan late in the year. The tax result depends on the asset, in-service date, financing and current depreciation rules, not simply the cash down payment.
What to review
Bring production and collection reports, bank records, payroll reports, loan agreements, equipment invoices and ownership documents.
Official source: www.irs.gov/publications/p334