Readiness Is Not Seasonal
What exhausts offices during an audit is starting preparation at notification. Then begins the hunt for old invoices, reconciling numbers that will not match, and explaining undocumented entries.
What Is Usually Requested
- Complete sequential e-invoices with no gaps
- Purchase and expense invoices with supporting documents
- Lease contracts linked to invoices
- Bank statements matching receipts
- Prior tax filings and their support
- Exempt and taxable revenue detailed separately
Four Common Real Estate Errors
- Mixing residential and commercial: residential is exempt, commercial taxable. Applying one treatment to both is the sector's most common error.
- Gaps in invoice sequence: a missing number raises immediate questions. Cancelled invoices must remain recorded as cancelled, not deleted.
- Mixing owner funds with office revenue: rent collected for an owner is not your revenue.
- Undocumented expenses: cash maintenance without an invoice may be disallowed.
Monthly Bank Reconciliation
The simplest, highest-impact habit. Match recorded receipts against bank statements monthly. Small discrepancies resolve in minutes when fresh and become mysteries after a year.
Electronic Archiving
The practical standard: can I retrieve any invoice by date and number within a minute? If the answer requires searching paper folders, you are not ready.
Important Note
This article presents general organizational practices and does not substitute for advice from a licensed accountant or tax advisor. Requirements change and application varies by entity size and activity — always verify current requirements with a specialist.