5 Common Small Business Tax Mistakes (and How to Avoid Them)
Running a small business is exciting, but it comes with plenty of challenges—especially when it comes to taxes. Many small business owners unintentionally make mistakes that can cost them time, money, and peace of mind. At 1st Source Tax & Accounting, we help entrepreneurs stay compliant and financially healthy. Here are the top five tax mistakes small business owners make—and how you can avoid them.
1. Mixing Personal and Business Expenses
Why it’s a problem: Blurs lines for deductions and raises red flags with the IRS.
How to avoid: Open a dedicated business bank account and credit card.
2. Missing Quarterly Estimated Tax Payments
Why it’s a problem: Leads to penalties and interest.
How to avoid: Mark deadlines (April, June, September, January) and work with a CPA to calculate correctly.
3. Forgetting About Deductions
Why it’s a problem: You leave money on the table.
How to avoid: Track home office costs, mileage, software subscriptions, and professional fees.
4. Not Keeping Good Records
Why it’s a problem: Disorganized receipts = lost deductions.
How to avoid: Use accounting software or professional bookkeeping services.
5. Waiting Until the Last Minute
Why it’s a problem: Rushed filing often leads to errors.
How to avoid: Stay organized year-round and schedule mid-year reviews.
Avoiding these mistakes can save you money and stress. If you’re ready for a smoother tax season, reach out to 1st Source Tax & Accounting today.
📞 Call us at: 770-529-6300
📧 Email: Mail@1stax.com