The Top 5 Tax Blunders Entrepreneurs Make (And How to Fix Them)

tax keyApril 18th is around the corner, people. Are your taxes done?

This is truly a dreaded time of year and I say that with a keen ache in my heart in remembrance of tax days past. My first tax year as a freelancer was an absolute disaster! Basically, I made every rookie mistake in the book from not accounting for my 1099 deductions to failing to identify literally dozens of write-offs (classes, home office space, car interest, and relocation being a few of them). To top it off, I went to a general service for tax returns; the folks there did not understand my business at all and I ended up paying out the nose both to the IRS and for that service. Like all entrepreneurs, I had to get tax savvy about my particular business real fast.

Most of us don’t come out of the womb understanding taxes, but they are a fact of life. Luckily, increased technology is making it a little easier. For example, 99Deductions is a new site for independent workers, freelancers and solopreneurs to quickly learn how to maximize take home pay and minimize taxes. The site’s founder, Raj Bhaskar, is passionate about giving entrepreneurs a better life in his corner of the world (and in my opinion, getting them more money back on their tax returns is a very good place to start).

Here, Raj has identified the 5 most common tax blunders and schools us on how to avoid them. Take note!

Do you have the support you need to manage your small business bookkeeping? Schedule a 30-minute appointment to speak with a local small business adviser.