Barbara Schreihans, CEO and founder of Your Tax Coach, shares insights on common tax mistakes made by business owners and provides tips on how to avoid them. One major mistake she highlights is not keeping accurate and complete records, which can lead to errors in tax filings, missed deductions, and audit complications. She recommends using accounting software, keeping detailed records of receipts, invoices, and bank statements, and hiring a bookkeeper to manage financial records.
Another common mistake is missing available deductions and credits due to a lack of awareness or fear of triggering an audit. Schreihans emphasizes the importance of educating yourself on available deductions and credits, such as home office expenses, business travel, equipment purchases, and research and development credits. Staying informed about tax law changes can help business owners maximize tax benefits and savings.
Overlooking professional tax guidance is another costly mistake, as tax laws are complex and constantly evolving. Schreihans suggests business owners explore free or low-cost resources for tax education or hire a reputable tax professional for tailored advice and tax planning strategies. Working with a tax expert can help ensure compliance, maximize tax benefits, and reduce the risk of errors and audits, ultimately saving money in the long run.
Schreihans advises business owners to focus on keeping accurate records, leveraging available deductions and credits, and seeking expert tax guidance to avoid common tax mistakes and ensure compliance with tax laws. While learning about taxes may not be the most exciting task for business owners, it can lead to significant cost savings in the long term. It is important to consult with a licensed professional for personalized advice concerning your specific tax situation.
Forbes Business Council is a leading organization for business owners and leaders, providing growth opportunities and networking resources. Business owners interested in joining the council can visit their website to see if they qualify for membership. By following Schreihans’ advice and staying informed about taxes, business owners can navigate the complex tax landscape more effectively and optimize their tax outcomes.
