5 Small Business Tax Mistakes to Avoid in Naples & Fort Myers

Running a small business in Southwest Florida comes with unique opportunities — and challenges. One of the most common areas where business owners lose money is in tax preparation and planning. At MarkhamNorton, we’ve worked with hundreds of businesses in Fort Myers, Naples, and Cape Coral, and we see the same mistakes made year after year.

Here are the 5 most common small business tax mistakes — and how to avoid them.

1. Mixing Personal and Business Expenses

It may seem convenient to put all expenses on the same credit card, but doing so can raise red flags with the IRS and make bookkeeping a nightmare.

How to avoid it:

• Keep separate bank accounts for personal and business use.

• Use accounting software that tracks and categorizes expenses.

2. Missing Out on Deductions

Many small businesses fail to claim deductions for expenses such as home office use, mileage, or continuing education. These can add up to thousands of dollars saved each year.

How to avoid it:

• Work with a CPA who knows which deductions apply in your industry.

• Keep detailed receipts and digital records.

3. Poor Recordkeeping

Relying on a shoebox of receipts is a recipe for stress during tax season. Inaccurate or incomplete records can also trigger audits.

How to avoid it:

• Use cloud-based bookkeeping tools.

• Schedule quarterly check-ins with your CPA to stay on track.

4. Misclassifying Employees and Contractors

The IRS takes worker classification seriously. Misclassifying employees as independent contractors can result in hefty fines.

How to avoid it:

• Consult your CPA before hiring.

• Review IRS guidelines for employee vs. contractor status.

5. Waiting Until the Last Minute

Many small businesses scramble in March and April to get organized, leading to rushed decisions and missed deductions.

How to avoid it:

• Create a tax planning strategy early in the year.

• Meet with your CPA quarterly to review finances and upcoming changes.

FAQ (SEO Snippet Targets)

Q: What tax deductions do small businesses often miss?

A: Common missed deductions include home office expenses, mileage, employee training, and software subscriptions.

Q: Should I hire a CPA or do my own taxes?

A: A CPA can help you avoid costly mistakes and maximize deductions, especially if your business is growing or has complex finances.

At MarkhamNorton, we help small businesses in Fort Myers, Naples, and Cape Coral minimize tax liability and maximize growth.