The start of a new year is often when business owners feel most organised. Plans are in place, motivation is high, and the year ahead feels manageable.
Ironically, it’s also when some of the most common tax mistakes are made.
As experienced Penrith Accountants, we regularly see issues arise early in the year that later lead to missed deductions, cash flow pressure, or unexpected tax bills. Most of these problems are avoidable with a little awareness and early guidance.
Mistake 1: Assuming This Year Will Be the Same as Last Year
One of the most common assumptions is that the current year will look much like the last.
Changes in any of the following can significantly affect tax outcomes:
Revenue growth or decline
Staffing levels
Pricing changes
New services or products
Capital purchases
Without reviewing how the year is shaping up, tax planning often relies on outdated expectations.
Mistake 2: Not Reviewing Business Structure Early
Business structures that were appropriate at startup don’t always remain effective as a business grows.
Common triggers for a structure review include:
Increased profitability
Asset purchases
Changes in ownership or income distribution
Increased risk exposure
Leaving structure discussions until year-end often removes options. Early review with a trusted Accountant Penrith businesses rely on provides more flexibility.
Mistake 3: Mixing Personal and Business Expenses
This issue tends to creep in quietly at the start of the year and becomes harder to untangle later.
Mixing expenses can:
Complicate bookkeeping
Create compliance issues
Lead to missed or incorrect deductions
Increase time and cost at year-end
Clear separation early in the year saves time, stress, and money later.
Mistake 4: Falling Behind on Bookkeeping
January often starts well, but bookkeeping quickly slips as the year becomes busier.
When records fall behind:
Cash flow visibility suffers
Tax planning becomes reactive
Deductions can be missed or mistimed
As Penrith Accountants, we consistently see better outcomes for businesses that treat bookkeeping as a planning tool rather than a compliance task.
Mistake 5: Waiting Until June to Think About Tax
Perhaps the most costly mistake is delaying tax planning until the end of the financial year.
By June:
Options are limited
Decisions are rushed
Stress levels increase
Cash flow pressure rises
Early planning spreads decisions across the year and allows for calm, informed choices.
Why These Mistakes Are So Common
Most of these issues don’t come from negligence. They come from:
Competing priorities
Lack of visibility
Assuming everything is “under control”
This is why early conversations with a Penrith Accountant can make a significant difference.
How to Avoid These Issues
Avoiding early-year tax mistakes doesn’t require major changes. It usually starts with:
Reviewing current financials
Checking that systems are working as intended
Identifying upcoming changes or investments
Having an early discussion with your accountant
Small adjustments made early often prevent larger problems later.
Why Local Advice Matters
Working with Penrith Accountants who understand your business and industry means advice is:
Practical
Relevant
Timely
Local knowledge ensures guidance is grounded in how your business actually operates, not generic assumptions.
Final Thoughts
The start of the year sets the tone for the months that follow.
Businesses that avoid early-year tax mistakes tend to:
Experience fewer surprises
Make better decisions
Achieve stronger tax outcomes
As experienced Penrith Accountants, we help businesses identify potential issues early so they can be addressed calmly and effectively.
Looking for an Accountant in Penrith?
Carmody Accounting & Business Advisory works with local businesses to provide clear, practical tax and advisory support.
If you’d like to review your position and avoid common tax pitfalls this year, we’re happy to help.