5 Common Tax Mistakes Small Business Owners Make — And How to Avoid Them

Running a small business is rewarding, but tax season can bring unexpected headaches if you’re not prepared. At The GAP CPA, PC we help business owners stay ahead by avoiding these five common tax pitfalls:

1. Mixing Business and Personal Expenses
It’s tempting to use one bank account for everything, but this can raise red flags with the IRS. Keep separate accounts and credit cards to simplify bookkeeping and defend deductions.

2. Missing Deductions
From home office expenses to vehicle mileage and software subscriptions, many entrepreneurs overlook valuable deductions. A tax professional can help identify what you’re legally entitled to claim.

3. Filing Late or Missing Deadlines
The IRS doesn’t take kindly to missed deadlines. Avoid penalties by staying on top of filing dates—and if cash flow is tight, file on time and arrange to pay later.

4. Misclassifying Workers
Independent contractor or employee? Classifying incorrectly can lead to hefty fines. Know the difference and document your decisions.

5. Not Planning for Quarterly Taxes
If you’re self-employed, the IRS expects quarterly estimated payments. Skipping them can lead to underpayment penalties and a surprise tax bill.

Need Help Navigating Tax Season?
Let us take the guesswork out of your taxes. Whether you're just starting or growing fast, The GAP CPA, PC is here to keep your finances clean and compliant.

Schedule a consultation today and get peace of mind with your numbers.