Let’s face it running a business is demanding enough without adding tax stress to the mix. But year after year, business owners fall into avoidable traps that end up costing them time, money, and peace of mind.
At Estess CPA, we help small business owners across Louisiana handle their taxes with clarity and confidence. If you’re trying to stay out of trouble with the IRS and keep more of what you earn, here are the most common tax mistakes we see and what you can do to avoid them.
1. Mixing Business and Personal Finances
Swiping the same credit card for groceries and client lunches? It’s a recipe for confusion.
Why it’s a problem:
Blending personal and business expenses muddies the water when it’s time to track deductions or respond to an audit.
Fix it:
Open a dedicated business checking account and credit card. Keeping transactions separate makes tax filing cleaner and reduces your audit risk.
2. Overlooking Tax Deductions
Home office? Business meals? Software subscriptions? If you’re not tracking these, you might be leaving money on the table.
Why it matters:
Many deductions go unclaimed simply because business owners forget to record them or don’t know they qualify.
Fix it:
Keep receipts and records all year. Use bookkeeping software or work with a CPA who understands what applies to your industry.
📌 Need help with tax planning? Here’s how we help →
3. Missing Quarterly Tax Payments
If you’re self-employed or don’t have taxes withheld from a paycheck, you’re expected to pay throughout the year not just in April.
Why it matters:
Missing deadlines for estimated tax payments can trigger penalties, even if you settle your full tax bill later.
Fix it:
Mark the due dates (January, April, June, and September). Or better yet, let us set up a system for automatic payments.
4. Misclassifying Workers
Is your freelancer actually an employee in the eyes of the IRS? Missteps here can lead to back taxes and fines.
Why it matters:
Misclassifying workers can cause tax compliance issues and trigger audits or legal problems.
Fix it:
Know the difference between independent contractors and employees. If it’s unclear, we’ll help you make the right call.
5. Weak Recordkeeping
Scattered receipts, missing invoices, or handwritten ledgers? That’s a recipe for frustration come tax time.
Why it matters:
Poor records mean more stress, more missed deductions, and higher audit risk.
Fix it:
Use accounting software or outsource your bookkeeping. It’s an investment that pays off in peace of mind and better tax outcomes.
6. Filing Late
The IRS doesn’t wait, and penalties stack up quickly if you’re late on your returns.
Why it matters:
Filing after the deadline can cost your business more in fees and lost opportunities for deductions.
Fix it:
Know your deadlines and get help filing on time. We’ll keep your calendar straight so you don’t have to.
7. Trying to Do It All Yourself
DIY taxes might seem like a cost-saving move. But one mistake with the numbers or a missed deduction can wipe out any savings.
Why it matters:
Tax laws change constantly. A quick online filing might miss the nuances that apply to your unique business situation.
Fix it:
Work with a tax professional who understands your business, your goals, and how to keep your finances on track year-round.
Final Thoughts
Tax time doesn’t have to be a scramble. The key is staying organized, asking for help when needed, and avoiding the traps that trip up so many business owners.
At Estess CPA, we help business owners across Louisiana make smarter tax decisions without the stress.
📞 Ready to talk?
Contact Estess CPA
Phone: (504) 433-5122 (Belle Chasse)
Website: https://estesscpa.com
📅 Schedule your free consultation today