As a veterinarian, you spend your days (and often your nights) providing comprehensive and quality care to your patients. You are busy ensuring that you are offering a complete and professional service, and you are determined to get the education you need to keep up with medical advances in the field of veterinary medicine. You should be commended for your dedication to your patients. When patient treatment makes up 10-12 hours of your day, six days a week, that doesn't leave time for much of anything else. Most veterinarians do not have a business manager dedicated to the business end of their practice and many times the business side of your practice does not receive as much attention as you'd like or that it needs.
When you receive notice that the IRS is auditing you, is NOT the time to start to be concerned with your record-keeping practices.
- Do you understand the difference between cash, accrual and hybrid methods of accounting?
- Do you sell products in your practice?
- Do you provide a discount to high-volume clients?
- Do you perform surgery or other treatment "after-hours?
- Do you maintain old appointment books for a minimum of five years?
- Do you keep trip sheets or trip tickets for care not delivered in your office?
- Do you accept veterinary pet insurance?
- Are you using the correct "tax year" for your practice?
- Are immediate family members or close relatives employed?
If you don't know the answers to these questions or how the answers to these questions can affect your tax liability, you could find yourself in trouble. You must become pro-active and be prepared for the very real possibility of an IRS Tax Audit. 
