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Contractors face uphill battle over tax audits

With states strapped for cash, Contractors are increasingly being audited by state tax collectors.  In particular, Electrical Contractors, Plumbing Contractors and HVAC Contractors seem to be prime targets.   

The complexities of a tax audit can be overwhelming.  To help offset the time and expense of an audit, Contractors are relying more and more on Contractor Accounting software that specialize in tax tracking and reporting.  

Specialty designed reports such as taxes billed and taxes collected include the detail auditors are looking for – invoices broken out by labor, material, and direct charges per taxing authority (state, county, city). 

Specialty tax reports not only save a Contractor mountains of preparation time, they’re also extremely accurate and reliable – and that’s a good thing to have on your side when sitting next to an auditor.

If you have specific questions regarding the kind of report you could customize, please call or email COBRA and we will be happy to answer your questions. 1-800-466-2507.

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