Don’t Be An April Fool: How to Avoid a Tax-Time Surprise

By Dr. Aaron Mahl, EVP Business Development, iTValuations

For too many business owners, April 15th brings an unpleasant surprise—a large and unexpected tax bill. But as our recent webinar with Greg Northrop (Director of Tax and Finance at ITValuations and Managing Partner at IT Tax Advisors), Becky Brown (Stride Accounting), and host Aaron Mahl (Executive VP at ITValuations) made clear, it doesn’t have to be that way.

Here are the top takeaways from their discussion on how to prevent an April tax surprise and create long-term financial clarity and business value.

1. Tax Surprises Are a Symptom, Not the Problem

Tax season panic typically stems from a deeper issue: lack of visibility into your financials throughout the year. According to Greg Northrop, “It’s not that anyone’s doing something wrong—there’s just no clear understanding of the numbers driving their liability.” That’s why waiting until tax time to look at your books is a recipe for surprises.

2. Your 2025 Tax Strategy Starts Now

Becky Brown emphasized the urgency: “The only time you can reduce your 2025 tax liability is during 2025.” That means keeping clean books every month—especially January through April—so you’re positioned to make smart decisions with real-time data. Waiting until next year is too late.

3. Your Balance Sheet Matters—Even If You Don’t Think It Does

Many owners think their books are “fine” because their P&L looks good. But Becky warns, “Messy balance sheets mean you’re missing something.” Negative numbers, outdated liabilities, or unreconciled assets can affect both your tax liability and your overall business health—especially if you’re considering a future transaction.

4. Clean Books Lead to Better Business Decisions

Accurate, timely financials don’t just help at tax time. They unlock better decisions every day—whether it’s determining if your services are profitable, timing your next hire, or tracking ROI on marketing. “If you’re paying someone to do your accounting,” Becky says, “make sure you’re getting more than a tax return out of it.”

5. Messy Financials Cost You in a Transaction

Aaron Mahl noted that preparing a company for sale often means spending 2–3 months cleaning up books—a process that can cost $10K–$20K. Greg adds, “Clean books are like a first impression on a date. If your financials don’t back up the story you’re telling, that’s a problem.” Whether you’re planning to sell soon or just want to increase your business value, better financial hygiene starts now.

6. AR Shouldn’t Be a Thing

One of the most actionable pieces of advice: eliminate accounts receivable altogether. “There’s no reason a professional services company should have AR,” Becky said. Use payment portals, auto-billing, and incentives (like charging a processing fee for checks) to automate collections and protect cash flow.

7. Avoid TikTok Tax Strategies

Both Becky and Greg have seen a rise in misinformation. “Everyone’s suddenly a tax expert,” Becky joked. “But a strategy you saw on TikTok might not apply to your business.” Engage experienced professionals before implementing anything you read or hear online.

One Quick Win: Automate Your Accounting

If your financial processes are manual and reactive, you’re wasting time and leaving money on the table. Automate where you can—starting with payment collection and rule-based transaction categorization in your accounting software. As Greg put it, “Set it up right once, and every month runs like clockwork.”

Final Word

Clean books aren’t just about avoiding IRS penalties—they’re about running a better business. Whether you’re navigating taxes, evaluating performance, or preparing for sale, your numbers should tell the right story. If they don’t, now’s the time to fix that.

 Want to dig deeper?

• Schedule a walkthrough of our Valuations-as-a-Service (VaaS) tool here.
• Check out our upcoming webinars here.

Let’s make your business more valuable—starting with your financials.