Running a small business can be a rewarding, exciting adventure, but with the tax deadline closing in, you might be feeling overwhelmed. If you’re unprepared or rushing, it’s easy to make mistakes in your tax preparation that could lead to future issues with the IRS. To help you navigate this season, learn about common mistakes below.

What to Avoid When Doing Taxes for Your Small Business

1. Inadequate Record Keeping

While this is often an ongoing issue carried on from the rest of the year, the problems it causes will feature most prominently during tax season. Poorly kept records can make you miss critical write-offs and deductions that could save your business a lot of money. You’ll also have a hard time resolving financial discrepancies without a backlog of records. 

If you do get audited by the IRS, you’ll have an easier time proving everything is above-board if you save receipts, invoices, and any other documents that show the flow of money in and out of your business.

2. Missing Deductions

If your business is small enough that you’re running it from home, you may be surprised at what you can still deduct as business expenses. This includes making claims for your home office, business travel in your personal vehicle, and any supplies you’ve purchased for your business. If you’re not sure which deductions you qualify for, working with a tax preparation expert can help you find the savings you’re missing.

3. Missing the Deadline

Failing to pay your taxes on time can happen for a number of reasons. You might have inadequate cash reserves to pay them or not be able to compile supporting documents in time. Whatever the reason, missing the deadline can land you a compounding fine that increases until you can pay. If you need extra time, request an extension or pay in portions with an installment plan through the IRS.

Make tax preparation easy for your business or yourself by turning to Selph and Friday, CPA. Based in Texarkana, TX, they’ve been helping people solve and avoid problems with the IRS for over 30 years. Burdened with tax debt? Being audited? They will help. Discuss your tax troubles by calling (903) 792-0281. Learn more about their services online.