Fail Fixes
Let’s be real—running a business is exhilarating, but taxes and bookkeeping? Not so much. Most entrepreneurs would rather focus on scaling their business than balancing a spreadsheet. But here’s the hard truth: Ignore your numbers, and they will come back to haunt you—usually in the form of IRS notices, cash flow crises, and gut-wrenching stress.
I’ve seen it all as the owner of Go Figure Accounting. And trust me, the biggest financial disasters don’t happen because business owners are bad at math. They happen because of avoidable mistakes. So let’s break down the seven ways business owners fail at their taxes and bookkeeping—and how you can dodge these pitfalls before they sink your business.
1. Mixing Business and Personal Finances
Your business isn’t your personal piggy bank. Yet so many entrepreneurs swipe their business card for personal expenses—or vice versa. Not only does this create a bookkeeping nightmare, but it also makes tax time a mess.
Fix It: Open separate bank accounts for your business. Keep every expense categorized properly, and if you must take money out, do it through owner distributions (and make sure you’re paying yourself properly!).
2. DIYing Without Understanding Accounting Basics
Yes, bookkeeping software like QuickBooks and Xero makes things easier. But just because you can do it yourself doesn’t mean you should. Misclassifying transactions, skipping reconciliations, and misunderstanding cash flow can lead to costly errors.
Fix It: If you’re not a numbers person, hire a professional—at least for quarterly check-ins. You’ll save time and avoid expensive mistakes.
3. Ignoring Profitability in Favor of Revenue Growth
Revenue is exciting. It makes you feel like you’re winning. But if you’re not keeping an eye on profitability, your high revenue might be hiding razor-thin margins—or worse, losses.
Fix It: Track profitability monthly. Follow the Profit First method—allocate profit first, then budget expenses accordingly. A business that runs on profits, not just revenue, is a business built to last.
4. Forgetting About Estimated Taxes
The IRS isn’t your forgiving best friend. If you don’t set aside money for estimated taxes throughout the year, you’ll get hit with penalties and a hefty bill come tax season.
Fix It: Plan ahead. Every time you make money, set aside at least 15% for taxes in a separate account. Work with a CPA to ensure you’re paying the right amount each quarter.
5. Not Keeping Receipts and Documentation
Your bank statement is not an expense tracker. If you get audited and can’t produce receipts, you could lose out on deductions—or worse, owe back taxes with penalties.
Fix It: Use an app like Expensify or Dext to snap photos of receipts and categorize them instantly. Store everything digitally so it’s easy to access if (or when) you need it.
6. Ignoring Cash Flow Until It’s a Crisis
Profitable businesses still go bankrupt. Why? Cash flow. If you don’t know what’s coming in and going out, you could end up scrambling to make payroll or cover expenses.
Fix It: Forecast your cash flow monthly. Don’t assume money in the bank means you’re in the clear—plan ahead and keep a buffer for slow months.
7. Waiting Until Tax Season to Get Organized
If April 15th (or March 15th for S-corps and partnerships) is your wake-up call, you’re already behind. Scrambling to pull together financials at the last minute leads to missed deductions and costly errors.
Fix It: Stay ahead. Reconcile your books monthly, review financial reports, and check in with your accountant regularly. Don’t make tax season a panic-driven scramble—make it a smooth, predictable process.
Bottom Line: Your Finances Need to Work For You, Not Against You
Bookkeeping and taxes aren’t just about compliance—they’re about financial clarity. When you take control of your numbers, you take control of your business’s future.
The good news? You don’t have to go at it alone. Whether it’s hiring a CPA, implementing Profit First strategies, or just setting up better financial systems, the right moves today can save you a world of headaches (and money) down the line.
So ask yourself—are you in control of your finances, or are they controlling you? If you’re not sure, now’s the time to change that.
By the Numbers
95%
of all consumer purchases will be made on an eCommerce website by 2040
43%
of all cyberattacks target small businesses.
>80%
of small businesses today are using technology to promote products.
70%
of consumers learn about a new business online, either through a website or social media.
60%
of small businesses that become victims of a cyber attack are forced to go out of business because of loss of revenue and security.
Medtech start-ups return an average net profit margin of
12.1%
making them in the top ten of the most profitable small businesses.
LinkedIn Leans Into Video With New Feature
LinkedIn is doubling down on video—and the timing couldn’t be better.
The platform just rolled out a new feature that allows users to share videos of themselves responding to trending topics, making it easier (and more engaging) for professionals to weigh in on the conversations that matter in their industries.
It’s part of a broader push into video content, which continues to gain traction on the platform. LinkedIn reports a 36% year-over-year increase in video watch time, a clear sign that users—especially younger professionals—are leaning into visual content as a preferred way to consume information.
For brands and thought leaders, this presents an opportunity: posting short, authentic videos could help boost visibility and engagement in a space that’s still less saturated than other platforms. In short? If you haven’t experimented with LinkedIn video yet, now might be the perfect time to hit “record.”
HAPPY FRIDAY?
U.S. Happiness Drops, But There’s Room to Grow
The latest World Happiness Report is in, and once again, Finland tops the list for the eighth year running, followed by Denmark, Iceland, and Sweden. Meanwhile, the U.S. has slipped to its lowest ranking yet: 24th, down from 11th in 2012.
But for U.S. small businesses, this isn’t just a stat to scroll past—it’s a reminder of the opportunity we have to create happier communities, starting right where we are.
One standout finding? Sharing a meal with someone is a stronger predictor of happiness than even income or employment. That’s big. Whether it’s fostering connection among team members, hosting customer appreciation events, or simply creating space for people to gather—small actions can have a meaningful impact.
As business owners, we need to be asking each other: How can help make work and life feel more connected—and a little happier—today
ANTI-SOCIAL
Count Me Out
Why Lush Is Doubling Down on “Anti-Social” Marketing.
More than three years ago, Lush made headlines when it announced it would stop posting to Instagram, Facebook, TikTok, and Snapchat. The move was part of a bold “anti-social” policy driven by concerns over addictive algorithms, content moderation failures, and data privacy issues. Since then, the brand has also stepped away from X (formerly Twitter) and started divesting from tech giants like Google, Apple, and Microsoft—cutting spending by 50% since FY23, with plans to zero out Google ads by FY26.
For a brand that once thrived on buzzy social content, it’s a dramatic shift. But Lush’s chief digital officer Jack Constantine says the decision is aging well. “Things have gotten worse,” he told Marketing Brew, citing rising hate speech and ongoing data concerns.
Still, Lush hasn’t gone completely dark. It remains active on YouTube, LinkedIn, and Pinterest, and leans into affiliate marketing and first-party platforms like its app and email newsletter.
For B2B brands questioning the ROI of social or looking to reclaim more control over customer relationships, Lush’s approach offers food for thought. Going “anti-social” might not be for everyone—but being more intentional? That’s a trend worth watching.
