5 Common Tax Filing Mistakes (and How to Avoid Them)

Tax season can be a stressful time for small business owners, and even minor mistakes can lead to penalties, missed opportunities, and added stress. Here are five common tax filing errors businesses often make, and practical tips to avoid them.

1. Missing Deadlines

Missing important tax deadlines is one of the most frequent mistakes businesses make. Filing late can lead to penalties, interest charges, and unwanted attention from tax authorities. To avoid this, mark key tax dates, such as GST and income tax deadlines, on your calendar. Set automated reminders using tools like your phone’s calendar or accounting software. Additionally, consider working with an accountant who can help ensure you stay on track.

2. Ignoring Eligible Deductions

Overlooking deductions is another costly mistake. Many small business owners miss out on claiming expenses like home office costs, vehicle usage, and asset depreciation. To prevent this, maintain detailed and organised records of all business-related expenses. Using accounting software can help categorise and track your expenses throughout the year. A tax professional can also identify deductions you might not be aware of, ensuring you claim everything you’re entitled to.

3. Inaccurate Record-Keeping

Disorganised or incomplete records can lead to errors in your tax return, filing delays, or even audits. To avoid these issues, use reliable accounting software to track your income and expenses consistently. Make it a habit to reconcile your bank accounts and financial records regularly. Keeping digital copies of receipts and invoices can also make the filing process smoother and more efficient.

4. Misreporting GST

GST errors, such as incorrect reporting or claiming ineligible input tax credits, are common and can result in penalties. To avoid this mistake, reconcile your accounts monthly to ensure GST amounts are accurate. Always double-check all GST entries before filing your return. If you’re unsure about compliance, seek guidance from a tax accountant who can help manage your GST obligations effectively.

5. Doing It All Yourself

Handling your taxes alone can be overwhelming, especially with the complexity of tax laws. Mistakes can be costly, and you may miss opportunities to optimise your tax position. Hiring a qualified tax accountant ensures your return is accurate and compliant with the latest regulations. Partnering with a professional who understands your industry’s unique needs can save you time and stress. Think of this as an investment in your business’s financial health.

Avoiding these common mistakes can save you time, money, and headaches. By staying organised, leveraging technology, and seeking professional advice, you can ensure a smoother tax season and focus on growing your business.


The content in this blog is intended to provide general insights and should not be regarded as professional advice. Each business situation is unique, and we recommend consulting with a professional for specific guidance. At Black Arrow Business Studio, we specialise in accounting and consulting services designed to support your business’s growth and success. Feel free to contact us for expert advice and customised solutions.  


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