5 Mistakes Business Owners Make with Their Taxes

Let’s talk about the tax mistakes that sneak up on way too many business owners (and how to avoid them like a boss).

Look, I get it—you didn’t start your business so you could geek out over spreadsheets and tax codes. But whether you like it or not, taxes are part of the ride. And if you don’t stay ahead of them, they will trip you up.

Here are five all-too-common mistakes that can make tax season a total nightmare—and how to dodge them with grace (and maybe a little sass).

🚩 Mistake #1: Only dealing with taxes once a year

Taxes aren’t just a once-a-year panic button—they’re a year-round thing. Every decision you make in your business has potential tax consequences. So if you're only looking at your numbers during tax season, you’re already behind.

Hot tip? Get yourself a solid accountant or tax-savvy bookkeeper who can keep eyes on your financials all year. That way, you’re not caught off guard come April.

🚩 Mistake #2: Messing up business deductions

Deductions are your friend, boo. But only if you know how to use them properly. Some business owners underclaim and end up leaving money on the table. Others get a little too confident and deduct things that definitely shouldn’t be deducted. (Your weekend spa trip probably doesn’t count. Sorry.)

Bottom line? Get advice from a certified tax pro. We know the rules—and we’ll help you get every dollar you deserve without landing you in hot water.

🚩 Mistake #3: Disorganized financials

Receipts in shoeboxes. Random spreadsheets with missing entries. No clear profit and loss statement in sight.

Sound familiar? No judgment—but let’s fix that. Clean, organized books are the key to smooth tax filing and solid business decisions year-round.

Pro move: Use a bookkeeping system (or better yet, hire someone who eats QuickBooks for breakfast) to keep your records tight and tidy.

🚩 Mistake #4: Misclassifying your people

So you’ve hired help—yay! But do you actually know if they’re an employee or an independent contractor? It’s not just about what you call them—it’s about how the IRS sees it.

Misclassifying workers can get you in serious trouble (like fines and back taxes kind of trouble).

When in doubt: Ask a pro. Getting it right now can save you a ton of drama later.

🚩 Mistake #5: Mixing business with personal

This one? Classic. Swiping the business card at Target. Using your personal Venmo for client payments. Mixing business and personal is the fast lane to chaos.

Do yourself a favor: Set up separate accounts for your biz. Track your spending. Pay yourself a real-deal salary. Your future self (and your accountant) will thank you.

✨ Moral of the story? Tax season doesn’t have to be a mess. But it will be if you don’t have systems and support in place.

If this list has you sweating a little—don’t worry, I’ve got your back.

👉 Book a FREE strategy session with me, and let’s make sure your business is set up to win (in taxes and profits).

You got this. I’ll help you stay on track. 💼💰

— Coach Kimberly