Tax season doesn’t have to be stressful — but it often is when small business owners fall into avoidable traps. At Calm Ledger, we’ve helped many clients clean up costly tax errors. Here are the top five mistakes we see (and how to steer clear of them).

1. Mixing Business and Personal Expenses
Blurring these lines can trigger red flags with the IRS and make tax prep harder than it needs to be. Keep separate bank accounts, and use software that tracks business-only transactions.

2. Failing to Track Deductions Year-Round
Trying to remember deductible expenses at the end of the year? That’s a recipe for missed savings. Implement a simple expense-tracking system and review it monthly.

3. Missing Quarterly Estimated Tax Payments
If you owe over $1,000 in taxes, you likely need to pay quarterly. Skipping these payments can lead to penalties and interest. A tax advisor can help set the right amount and schedule.

4. Not Classifying Workers Correctly
Independent contractor or employee? Misclassification can cause legal and tax issues. Review IRS guidelines or ask us for help to ensure proper reporting.

5. Going It Alone
DIY taxes work — until they don’t. Working with a professional may cost less than fixing avoidable mistakes, and can often uncover savings and strategies you didn’t know you had.

Conclusion:
Avoiding these mistakes can save you time, money, and stress. If you’re unsure where your finances stand, let us help.
Schedule a free consultation today to get ahead of tax season.