Summary of What This Blog Covers:
- Master the tax side of your business before it costs you — This blog outlines five common (but preventable) tax mistakes women entrepreneurs make like skipping quarterly payments or waiting until April for tax advice and how they can quietly drain your profit if left unchecked.
- Learn the practical tax strategies that protect your income year-round — From maximizing deductions and managing clean books to avoiding self-employment tax overload, this blog offers actionable steps and solutions for businesswomen who want to grow smarter, not just bigger.
- Discover why your business structure could be working against you — If you’re earning over $80,000 in net profit and still taxed as an LLC, you’re likely overpaying. We break down how switching to an S-Corp with the right CPA guidance could save you thousands each year.
- Turn tax planning from an annual scramble into a strategic advantage — With guidance from a proactive CPA firm in Austin, Texas, you’ll learn how to make smarter financial decisions all year long, not just at filing time. Because tax strategy is about owning your future, not just settling your past.
Building Something Big? Don’t Let Avoidable Tax Mistakes Slow You Down
Let’s be honest. Most businesswomen didn’t start their ventures because they love bookkeeping or get jazzed about quarterly estimated payments. You built your business to solve a problem, serve your clients, and live life on your own terms.
But here’s the truth: how you handle taxes can either fuel your growth or quietly cost you thousands each year.
At Insogna CPA, we work with powerful, purposeful women entrepreneurs every day. Women who are growing six- and seven-figure businesses while juggling families, teams, and a whole lot of ambition. And the one thing we see over and over? Even the most talented, visionary founders make tax mistakes that could have been avoided with the right support.
This guide is here to change that.
Below are the five most common tax missteps we see and the steps you can take to avoid them. Whether you’re running a solo consulting practice or managing a growing team, this is your blueprint for saving more, planning smarter, and leading with confidence.
1. Not Making Quarterly Tax Payments
Let’s start with the big one. If you’re running a profitable business and you’re not making quarterly estimated tax payments, you may be stacking up penalties and interest without even knowing it.
Why This Happens
Many business owners assume taxes are something to deal with in April. But the IRS sees entrepreneurs differently than W-2 employees. If you’re self-employed or operating a pass-through entity (like a sole proprietorship or LLC), and you expect to owe more than $1,000 in taxes for the year, the IRS expects you to pay as you go four times a year.
Missing those deadlines doesn’t just lead to stress, it leads to real financial consequences.
The Cost of Skipping Quarterly Payments
Say you made $120,000 in net income last year. That could put you on the hook for $25,000–$30,000 in taxes, depending on your state and deductions. If you don’t make those payments quarterly, the IRS could tack on hundreds or even thousands in late payment penalties and interest—money that could have gone toward growth or savings.
How to Fix It
- Add these quarterly dates to your calendar: April 15, June 15, September 15, January 15
- Work with a tax preparer near you or a CPA in Austin, Texas to project your tax liability based on real numbers
- Open a dedicated business savings account just for taxes, and transfer a portion of every invoice or payment into it
A little proactive planning today can help you avoid a painful surprise next spring.
2. Missing Out on Deductions You’re Legally Entitled to
This one hurts because it’s so avoidable. Every year, business owners overpay the IRS simply because they’re unsure what qualifies as a deduction or they don’t track things clearly enough to claim them.
The Reality
If you’re not working with a certified public accountant near you, chances are you’re not claiming everything you should be.
Deductions Women Entrepreneurs Often Miss
- Home office expenses (rent, utilities, internet)
- Business mileage and travel (even local trips to the post office or coffee shop meetings)
- Software and subscriptions (think Zoom, Canva, CRM tools, even Dropbox)
- Branding and marketing (social media ads, designers, paid memberships)
- Professional services (coaches, legal counsel, and yes, your CPA firm in Austin, Texas)
Even meals and business development trips may be deductible if they’re properly documented.
The IRS Standard
You’re allowed to deduct any expense that is ordinary and necessary to run your business. But the key is documentation. If your receipts are scattered or you’re estimating, you may miss deductions or open yourself up to audit risk.
How to Fix It
- Use cloud-based accounting software like QuickBooks Self-Employed
- Save receipts digitally (apps like Dext and Expensify make it simple)
- Categorize expenses monthly so nothing slips through the cracks
- Partner with a small business CPA in Austin who reviews your books regularly and flags new opportunities
3. Disorganized Bookkeeping = Poor Financial Decisions
If your books are messy, you’re not just risking audit flags, you’re also flying blind when it comes to the health of your business.
What We Often See
- Personal and business finances still tangled in one account
- Invoices tracked in multiple spreadsheets (with inconsistent totals)
- Profit and loss reports that don’t match tax returns
- Last-minute panic in March with piles of receipts and guesswork
Why It Matters
Bookkeeping isn’t just about taxes, it’s about decision-making. When you’re clear on your numbers, you can confidently:
- Hire a new contractor
- Raise your rates
- Apply for a loan or funding
- Plan a product launch based on actual margins
When you’re not? You’re guessing and usually playing small because of it.
How to Fix It
- Set up dedicated business accounts (checking, credit, and savings)
- Work with an Austin tax accountant who offers monthly or quarterly reconciliation
- Use a real-time dashboard to track income and expenses by category
Keeping your financials clean and current is the foundation of a financially sound and scalable business.
4. Choosing the Wrong Business Structure
Your legal entity affects how much tax you pay and how you’re allowed to take money from the business. And yet, many women choose an entity once and never revisit the decision even after their revenue doubles or triples.
The Common Misconception
“I’m an LLC, so I’m all set.”
The truth? While an LLC provides liability protection, it may also increase your tax burden, especially once your profit crosses into six figures.
The S-Corp Opportunity
Electing S-Corp tax treatment allows you to split your income into:
- Salary: Subject to payroll tax (Social Security + Medicare)
- Distributions: Not subject to payroll or self-employment tax
This can save you thousands in taxes every year.
Real-World Example
If your business nets $150,000 in profit:
- As an LLC: You pay $22,950 in self-employment tax
- As an S-Corp: You pay yourself a $75,000 salary (subject to payroll tax) and take $75,000 as distributions, saving over $10,000
What’s Required to Make the Switch
- File Form 2553 with the IRS to elect S-Corp status
- Set up compliant payroll (your Austin accounting firm can help)
- File a separate tax return (Form 1120-S)
- Keep clear records of salary vs. distributions
If your net profit is over $80,000, it’s time to consider switching.
5. Treating Tax Planning as an Annual Event
If your CPA only talks to you in March, you’re missing out on the biggest advantage of working with a tax professional: strategy.
What You’re Missing Out On
- Timely retirement contributions
- Year-end spending strategies
- Entity structure shifts
- Deferring or accelerating income
- R&D tax credits or depreciation benefits
All of these options require advance planning not a last-minute spreadsheet in April.
What to Do Instead
- Schedule a mid-year check-in with your certified public accountant near you
- Review your YTD profit and adjust estimated payments accordingly
- Look ahead: Are you planning to hire? Invest in equipment? Change services?
- Use your tax data to support your business vision, not just IRS compliance
When you treat tax as a tool not a task, you gain power, clarity, and confidence.
Ready to Stop Guessing and Start Planning?
If you’ve seen yourself in even one of these five mistakes, it’s time to turn the page. Because tax isn’t just about numbers. It’s about ownership.
Ownership of your business. Your wealth. Your future.
At Insogna CPA, we offer full-service support tailored to women entrepreneurs:
- Strategic tax planning that works with your goals
- Proactive check-ins to prevent mistakes before they happen
- Clean books and stress-free filings
- Entity guidance for every growth stage
- Deep partnership from a team that actually cares
You deserve more than a tax preparer. You deserve a financial advocate.
Let’s Fix This Together
Book your consultation with Insogna CPA today and finally get the strategy, support, and insight you need to scale your business with confidence.
We’re not just your CPA in Austin, Texas. We’re your behind-the-scenes partner in building something remarkable.