Book Keeping & An Audit

[Daniel Sabato]

Hello everyone, looking for some help with something. I'm just starting out investing & I've got a few properties now. I'm looking at the best ways to do book keeping and stay organized. My main concern is obviously that if an audit came, I would have all my ducks in a row. Now my accountant really only asks for the numbers and amounts for the expenses. Being that I have a property manager I personally don't have the receipts for these expenses. I keep a reserve of X amount of $ on my owner's portal, and the PM pays the bills and they post a little work order type receipt. It's not an actual photo of the receipt, it just lists all of the relevant information. Is that sufficient for an audit? If I've got all the information about the expense and maybe even a snip of the expense on my PM's portal, will that get the job done? Or do I need to work something else out? Thanks!

[Steven Hamilton II]

Your property management statement will suffice in an audit. They cannot and will not expect you to have the actual receipts that someone else paid on your behalf. 

I argue with the IRS for a living. 

@Natalie Kolodij can vouch for that. She hears my stories regularly.