Running a small business is no small feat. Between managing operations, serving clients, and planning for growth, taxes often become an afterthought—until it’s too late. At Chaston Liberty CPA, we’ve seen firsthand how even the most well-meaning entrepreneurs can fall into costly tax traps.
That’s why we’re sharing the top five tax mistakes small business owners make—and how our expert Tax Preparation Services can help you avoid them.
1. Mixing Personal and Business Finances
One of the most common and damaging mistakes is failing to separate personal and business expenses. Using a single bank account for both can lead to inaccurate deductions, messy bookkeeping, and red flags during audits.
At Chaston Liberty CPA, we help clients establish clear financial boundaries. Through our CPA consultation in Arizona, we guide you in setting up proper accounts, tracking expenses, and maintaining clean, audit-ready records.
“Jim helped me restructure my finances and set up a proper system. I didn’t realize how much I was losing until he showed me the numbers.”
— Angela M., Boutique Owner
2. Misclassifying Employees and Contractors
Misclassifying workers is a serious issue that can result in back taxes, penalties, and legal trouble. Many small business owners mistakenly label employees as independent contractors to avoid payroll taxes—only to face IRS scrutiny later.
We ensure your team is classified correctly based on IRS guidelines. Our Tax Preparation Services include a full review of your workforce structure to protect you from compliance issues and unexpected liabilities.
3. Missing Quarterly Estimated Tax Payments
Failing to pay quarterly estimated taxes is a mistake that can lead to interest charges and penalties. Many entrepreneurs underestimate their income or forget to set aside funds, resulting in a hefty bill come tax season.
With Chaston Liberty CPA, you’ll never miss a deadline. We calculate your quarterly obligations, send reminders, and help you plan ahead—so you stay compliant and stress-free.
“I used to dread tax season. Now, I know exactly what to expect each quarter. Jim’s team keeps me on track and out of trouble.”
— Carlos D., Freelance Consultant
4. Overlooking Deductions and Credits
From home office expenses to vehicle mileage, small business owners often miss out on valuable deductions simply because they don’t know what’s available. Worse, some claim deductions they’re not eligible for, triggering audits.
Our team at Chaston Liberty CPA stays up to date with the latest tax laws and industry-specific deductions. We ensure you claim everything you’re entitled to—nothing more, nothing less.
“Tax preparation isn’t just about compliance—it’s about opportunity,” says Jim Chaston, CPA. “We help our clients uncover savings they didn’t know existed.”
5. Waiting Until the Last Minute
Procrastination is a tax killer. Waiting until the last minute to gather documents, reconcile accounts, or consult a CPA can lead to rushed filings, missed deductions, and costly errors.
We believe in proactive planning. Our Tax Preparation Services are designed to support you year-round—not just in April. With regular check-ins, strategic reviews, and ongoing support, we help you stay ahead of the curve.
The Cost of Tax Mistakes in 2025
According to the U.S. Census Bureau’s July 2025 Business Trends and Outlook Survey, over 1.2 million U.S. businesses are actively reporting financial data, with many citing tax compliance as a top concern. Meanwhile, the IRS’s 2025 tax bracket adjustments reflect a 2.8% inflation increase, impacting how small businesses calculate deductions and liabilities.
In this environment, even a small mistake can have big consequences. That’s why working with a trusted CPA is more important than ever.
Why Work with Chaston Liberty CPA
At Chaston Liberty CPA, we specialize in helping entrepreneurs and small business owners avoid these common pitfalls. Led by Jim Chaston, CPA, we offer:
- Accurate, strategic tax preparation
- Quarterly planning and compliance
- Audit support and resolution
- Industry-specific guidance
- Year-round CPA consultation in Arizona
We don’t just file your taxes—we help you build a smarter, stronger financial future.
Conclusion: Avoid Mistakes, Maximize Success
Tax mistakes can cost you time, money, and peace of mind. But with the right partner, you can avoid the pitfalls and unlock the full potential of your business. At Chaston Liberty CPA, we’re here to help you do just that—with expert guidance, proactive planning, and a commitment to your success.
Schedule Your Tax Consultation with Chaston Liberty CPA Today
Take control of your business finances with expert Tax Preparation Services from Chaston Liberty CPA. Our team, led by Jim Chaston, CPA, offers personalized strategies that help you avoid costly mistakes, reduce your tax burden, and stay compliant year-round. Whether you’re a freelancer, contractor, or small business owner, we’re here to support your growth with clarity and confidence.
Why wait? Discover the benefits of working with a CPA who understands your industry and your goals. At Chaston Liberty CPA, we pride ourselves on delivering results that exceed expectations. From quarterly planning to audit support, we provide the tools and insights you need to thrive.
Ready to get started?
Contact Chaston Liberty CPA or call us at (480) 590-0968. You can also email Jim Chaston at jim@chastonliberty.com.
Let’s build a smarter tax strategy together—one that protects your business and fuels your success.