Tax return preparation is extremely complex, especially for small business owners and investors with broad portfolios. Even relatively minor mistakes can have a significant impact on your tax liability, potentially resulting in missed deductions or even triggering an IRS audit. When you’re going over your taxes this season, here are a few mistakes to avoid.

4 Common Tax Return Preparation Mistakes

1. Forgetting Startup Expenses

Of course, you’ll want to take advantage of every deduction you qualify for. However, a lot of business owners forget to deduct the costs of getting their new enterprise off the ground. In fact, a lot of the expenses of getting started are deductible, from state registration fees, advertising, and travel costs. Claiming exemptions for these investments will lower your tax burden, leaving more to put into your new business.

2. Neglecting Minor Deductions

Petty cash purchases, trade journal subscriptions, and mileage for business-related driving might seem like minor expenses, but they add up throughout the year. With the help of a qualified tax return preparation professional, deducting these minor expenses could save you thousands when tax season comes around.

3. Exaggerating Deductions

While you don’t want to forget any deductions, you also don’t want to exaggerate the facts. Suddenly deducting a lot more than you did last year can trigger an IRS audit, and some expenses aren’t fully deductible, even if they are business related.

4. Mixing Business & Personal Accounts

Keep your company’s finances totally separate from your personal accounts. Not only will this help simplify your tax return preparation, but it will also make explaining your finances easier if you are selected for an audit.

Tax mistakes can be stressful and expensive, so why not let a skilled professional handle your finances, so you can concentrate on running your business? Michael C Davis CPA CGMA in Stow, OH, has over 37 years of experience providing expert tax return preparation services to business owners throughout the Akron and Cleveland areas. Visit them online for more information on their services, and give them a call at (330) 376-1099 to schedule an appointment today.