Running a business is demanding. Between serving clients, managing cash flow, and planning for growth, tax is often left until the last minute. Unfortunately, that’s when small mistakes can become expensive ones.

At Jones & Co. Advisory, we work with sole traders, startups, and growing businesses every day. Here are five of the most common tax mistakes we see and how you can avoid them.

1. Mixing Personal and Business Finances

Using one bank account for everything might feel convenient, but it creates confusion and risk. When personal and business expenses are mixed, it becomes harder to track deductions, reconcile accounts, and prove claims if audited.

How to avoid it:
Open a separate business account and use it exclusively for business income and expenses. This single step will make your bookkeeping cleaner and your tax return more accurate.

2. Missing Legitimate Deductions

Many business owners overpay tax simply because they don’t know what they can claim. Software subscriptions, home office costs, equipment, professional fees, and even part of your phone bill may be deductible.

How to avoid it:
Keep receipts and records throughout the year and review them with an accountant. A proactive approach ensures you claim everything you’re entitled to.

3. Poor Record-Keeping

Scrambling to find invoices and bank statements at tax time is stressful and often leads to errors. Incomplete records can result in missed deductions or compliance issues.

How to avoid it:
Use simple accounting software and set aside time each week or month to update it. Consistency beats perfection.

4. Forgetting About GST and PAYG

Cash flow can look healthy until a GST or PAYG bill arrives. Many businesses underestimate how much they owe and are caught off guard.

How to avoid it:
Set aside a percentage of each payment you receive into a “tax” account. This keeps your working cash separate from what the ATO will eventually require.

5. Only Thinking About Tax Once a Year

Tax planning isn’t just for June. Decisions you make throughout the year—purchasing equipment, hiring staff, changing structure—can have major tax implications.

How to avoid it:
Check in with your accountant during the year. Even a short conversation can help you make smarter, more tax-efficient decisions.

The Bottom Line

Good tax management isn’t about doing more work. It’s about building simple systems and having the right advice at the right time.

At Jones & Co. Advisory, we help business owners stay compliant, reduce stress, and keep more of what they earn. Whether you’re just starting out or scaling up, clear financial guidance can make all the difference.

Book a consultation today and take control of your business finances with confidence.