1) Avoid revenue discrepancies between tax forms. If they don’t match, you increase your risk of being audited.
2) Avoid large business expenses with no backup documentation.
3) Avoid having financial ratios too far away from your competitors in your industry
4) Avoid claiming home office expenses and use of a vehicle at a non-reasonable rate
5) Avoid recurring losses
6) Avoid large charitable deductions
7) Avoid large shareholder loans balances
8) Avoid paying family members with non-reasonable wages
9) Be honest and be meticulous about recordkeeping, especially for businesses with a lot of sales paid with Cash.