Hey there, startup founder! We know you’ve got big dreams and a million things on your plate. But here’s the deal—tax mistakes can cost your business valuable time and money. Whether you’re searching for a reliable CPA in Austin, Texas, or simply trying to avoid costly errors, this guide is for you. Let’s dive into the most common tax mistakes startups make—and how partnering with a trusted Austin tax accountant can help you avoid them.
1. Skipping State-Specific Filings
Did you know tax requirements differ across states? Forgetting a state-specific filing can lead to unnecessary penalties. A seasoned professional from an Austin accounting firm ensures you’re compliant with all federal and state regulations, so you can stay focused on building your business.
2. Missing Out on R&D Tax Credits
Are you innovating? Then you might qualify for Research & Development tax credits—but many startups don’t even know they exist. Partnering with a small business CPA in Austin can help you identify these opportunities and save thousands of dollars you can reinvest in your growth.
3. Mismanaging Deferred Revenue
Deferred revenue can be tricky, especially if you’re new to running a business. Mishandling it can create compliance headaches and impact your cash flow. A reliable Austin tax accountant can guide you in setting up proper revenue recognition practices that align with IRS requirements.
4. Misclassifying Workers
Think it’s easier to classify everyone as a contractor? The IRS might think otherwise. Misclassifying employees can lead to hefty fines. A trusted tax advisor in Austin will help you correctly classify your team, saving you from unnecessary headaches down the road.
5. Skipping Quarterly Estimated Tax Payments
Forgetting to file your quarterly estimated taxes? You’re not alone. Many startups underestimate their tax liabilities, which can result in costly penalties. A proactive CPA in Austin, Texas, keeps you on top of deadlines so you never miss a payment.
6. Overlooking Sales Tax Obligations
Selling across state lines can mean dealing with multiple sales tax jurisdictions. Sound overwhelming? It is—but an experienced professional from Austin CPA firms can ensure you’re meeting all your sales tax obligations while keeping your business protected.
7. Trying to Handle It All Yourself
We get it—you’re scrappy and want to save money. But handling taxes in-house can lead to errors that cost far more in the long run. Partnering with an experienced Austin small business accountant not only saves you time but ensures accuracy, so you can focus on scaling your business.
Let Insogna CPA Help You Avoid These Mistakes
At Insogna CPA, we specialize in supporting startups like yours. From maximizing R&D tax credits to navigating state-specific filings, we’ve got your back. As one of the top CPA firms in Austin, Texas, we offer comprehensive services tailored to your needs.
Ready to protect your startup from costly tax mistakes? Contact Insogna CPA today to set your business up for success!