5 Common Tax Mistakes Small Business Owners Make — And How to Avoid Them in 2025

Running a business comes with a long list of responsibilities — and tax compliance is one of the most important (and most overlooked). At Team Wright Taxes, we see too many entrepreneurs make avoidable tax mistakes that cost them time, money, and peace of mind.

Here are the top five tax mistakes small business owners make — and what you can do differently this year:

1. Mixing Personal and Business Expenses It might be convenient, but it's risky. Keep clean financial records with separate accounts to avoid IRS scrutiny.

   
   

2. Missing Quarterly Estimated Payments If you're not withholding taxes from your income, you’re expected to pay quarterly. Missing these deadlines can lead to penalties and interest.

   
   

3. Ignoring Available Deductions From home office expenses to vehicle use, many deductions go unclaimed. A tax advisor can help you claim what you're legally entitled to.

   
   

4. Poor Recordkeeping Disorganized or missing documentation could cause issues in an audit or prevent you from claiming deductions.

   
   

5. Waiting Until Tax Season to Plan Planning ahead is key. Working with a tax advisor throughout the year means smarter decisions — and fewer surprises.

   
   

Avoiding these common mistakes starts with proactive planning. Team Wright Taxes specializes in helping business owners stay compliant, organized, and optimized.

🔗 Want More Ways to Win with Your Taxes?

Team Wright Taxes is here to help you stay ahead — not just at tax time, but all year long.

• Book a Consultation / Discovery Call

• Join Our Newsletter for monthly tips, updates, and special resources

• Save with Our QuickBooks Partner Link – Limited-time offer! 

🔔 Let’s Connect: Website | Facebook | Instagram | YouTube | LinkedIn | Google | Alignable