Filing taxes for your small business isn’t exactly a simple process. After all, you probably didn’t sign up to be an accountant when you decided to open your own business. Your expertise lies elsewhere. Plenty of other small businesses in South Carolina are in the same boat, and we are very familiar with where they usually go wrong when it comes to their taxes. Today, we’re going over these errors, so you know what to avoid.
Here are the most common mistakes small businesses make on their taxes:
- Mixing Business and Personal Expenses- This could involve taking money from a business account for personal use or using one account for both personal and business transactions, for example. This could lead to miscalculations on your taxes and land you in trouble. To avoid any commingling, make sure to use separate accounts and credit cards for each.
- Not Claiming the Proper Deductions- Taking deductions that don’t apply to you could lead to your business being audited and costing you a significant amount on money. However, many small businesses don’t apply all the deductions they should, which means they pay more taxes than they really owe. Even deductions that seem small can make a difference. Either way, these are mistakes you should avoid.
- Filing Your Taxes Late- Missing the deadline to file your taxes can lead to severe penalties. If you expect that you may not be able to meet the deadline, you should file for an extension, so you’ll have more time to complete and submit your return. However, you still need to pay some tax by the original deadline.
If you want your small business to avoid tax mistakes like these, contact us at America’s Best Payroll to learn about how our tax services can help you.