Many entrepreneurs start their businesses full of enthusiasm, vision, and a strong desire to grow. However, the reality is that a large number of businesses in the United States shut their doors before reaching the five-year mark. Why does this happen? While there are many factors, three common mistakes often make the difference between a business that thrives and one that fails.
Today, we’ll tell you what they are—and how to avoid them.
1. They mishandle their accounting
A messy or neglected accounting system is one of the main reasons why so many businesses end up in financial trouble.
What happens when you don’t manage your finances properly?
- You don’t really know how much you’re earning or losing.
-
You miss important payments.
-
You make decisions based on guesses instead of real data.
-
You can’t spot when something’s going wrong—until it’s too late.
Real example: Many businesses that do great in sales end up going bankrupt because they never actually knew how much they were spending each month.
How to solve it?
Having a reliable accounting system and working with a professional who truly understands your business can make all the difference. At Cypress Accounting Services, we help our clients keep their books up to date with clear, easy-to-understand reports that are always accessible.
2. They don’t file their taxes on time ⏳
Delaying your tax filing or ignoring deadlines can have serious consequences:
-
Penalties and accumulated interest that hurt your cash flow.
-
Legal issues with the IRS that can escalate quickly.
-
Suspension of tax benefits or unexpected withholdings.
It’s not just about paperwork filing your taxes on time is a basic compliance step that helps ensure your company’s financial stability.
How can you avoid this mistake?
With a well-organized tax calendar and expert accounting guidance, you can make sure nothing slips through the cracks. At Cypress, we remind you of key deadlines, help you gather all the necessary documents, and prepare your filings so they’re always submitted on time.
3. They overpay by not taking advantage of tax benefits 💸
Did you know that many small businesses end up paying more taxes than they should simply because they don’t know about the available credits and deductions?
-
Deductible expenses like equipment, vehicles, rent, professional services — or even your own salary as the owner — are often not applied correctly.
-
There are also special tax credits for certain types of businesses, hires, investments, and legal structures that often go unused.
The result: you’re handing money to the IRS that you could be reinvesting in your business.
The solution?
Proper tax planning. It’s not just about filing your taxes it’s about strategically organizing your income, expenses, and business structure so you pay what’s fair… and not a penny more.
At Cypress Accounting Services, we work with you year-round — not just during tax season — to help you make smart decisions that legally and effectively reduce your tax burden.
Contact us and let us take care of your accounting.
Contact us today for a free consultation.
Call now
@casincometax 💼 Tener una corporación es un gran paso… pero también una gran responsabilidad. No dejes que la falta de organización frene el crecimiento de tu negocio 📉🚫 En Cypress Accounting Services te damos soluciones reales ✅📊 📞 Llama al (714) 956-7322 y pongamos tu negocio en orden. #cypressaccounting #negociopropio #asesoriafiscal #latinosenusa #anaheimcalifornia #contabilidadempresarial ♬ original sound - Cypress Accounting Services
Conclusion
It’s not a lack of effort that causes many businesses to fail it’s the lack of structure and proper guidance in key areas like accounting and taxes.
Whether you’re just starting out or already running your business, make sure to avoid these three common mistakes:
-
Not managing your accounting properly.
-
Not filing your tax returns on time.
-
Not taking advantage of tax benefits that could help your business grow.
At Cypress Accounting Services, we provide complete support to help your business not just survive, but thrive. Schedule a consultation and start building a solid, strategic financial foundation for your company.
