Benefit Of Audit Management

Almost every state in the U.S. has some form of a balanced budget requirement compelling state legislatures to balance projected revenue with expenditures. This leaves state budgets subject to the fluctuations of economic volatility and can leave state legislatures scrambling to raise revenue during periods of economic decline. Changes to income and property tax can take a year or more to raise new revenue, whereas sales tax changes can raise new revenue shortly after they are enacted. As a result, legislators often rely upon sales and use tax changes to close budget gaps due to the immediate effect they can have, creating a compliance challenge for businesses that collect and pay sales taxes. State revenue agencies use audits to enforce tax compliance, regularly auditing large taxpayers and increasing frequency of audits on all businesses, causing companies to devote time and resources to manage these audits and look out for the company's interests. Taxpayers facing