Common Mistakes Small Business Owners Make at Tax Time

From missed deductions to poor record-keeping — the most costly mistakes small business owners make and how to avoid them year-round.

The most costly small business tax mistakes: (1) Mixing personal and business finances — always use a dedicated business account. (2) Missing estimated tax payments and incurring underpayment penalties. (3) Not tracking mileage and home office deductions. (4) Misclassifying employees as contractors. (5) Not deducting 100% of self-employed health insurance premiums. (6) Failing to fund a SEP-IRA or Solo 401(k) before the filing deadline. (7) Waiting until April to think about taxes. Proactive engagement with a White Crest advisor eliminates these pitfalls year-round.