Business owners can rest easier with sound cash flow management
Slow cash flow is one of the leading causes of insomnia for business owners. The good news is you can rest easier by exercising sound cash flow management. First, scrutinize your selling cycle (how long it takes to develop, market and generate revenue from products or services) and your disbursements cycle (how you manage regular payments to employees, vendors, creditors and others). You want the two cycles to match as evenly as possible. Or, better yet, you want to convert sales to cash more quickly than you’re paying expenses. If a cash crunch appears imminent, consider steps such as slowing growth, reviewing expenses and managing assets differently. Contact us for advice and assistance.
Tax breaks in 2025 and how The One, Big, Beautiful Bill could change them
The U.S. House of Representatives passed The One, Big, Beautiful Bill in May, introducing possible significant changes to individual tax provisions. It’s now being considered by the Senate, which may make a number of changes. What’s in the bill? If enacted, there would be increases in the standard deduction and the Child Tax Credit. The state and local tax deduction cap would increase from $10,000 to $40,000 for those earning less than $500,000. The proposed law would also exempt tip income and overtime pay from federal income tax. But it would generally eliminate tax credits for new and used electric vehicles purchased after Dec. 31, 2025. Contact us with any questions about your situation.
5 tax breaks on the table: What business owners should know about the latest proposals
The One, Big, Beautiful Bill, which is currently being considered in Congress, could significantly reshape several business tax breaks. For example, the bonus depreciation deduction could change. Currently, businesses can deduct 40% of the cost of eligible new and used equipment in the year it’s placed in service (this will drop to 20% in 2026 and phase out entirely in 2027). The bill would restore 100% bonus depreciation retroactively for property acquired after Jan. 19, 2025, and extend it through 2029. Why it matters: A full deduction in the year of purchase allows for faster depreciation, freeing up cash flow. This could be especially beneficial for capital-intensive industries.
Planning a summer business trip? Turn travel into tax deductions
If you or your employees are heading out of town for business this summer, it’s important to understand the travel deduction tax rules. To qualify, the trip must be necessary for business purposes and require an overnight stay within the U.S. You can deduct the actual costs of transportation (such as airfare and taxis) as well as lodging expenses. Business meals are also deductible but limited to 50% of the cost. If a trip includes both business and personal time, only expenses related to the business portion (such as meals and lodging for business days) are deductible. Personal expenses incurred during vacation days aren’t. Contact us for guidance on what’s deductible in your situation.
Mission and vision statements help businesses rise above the din
Many of today’s businesses operate in a cacophonous marketplace. Everyone is out blasting emails, pushing notifications and proclaiming their presence on social media. Where does it all leave your customers and prospects? Quite possibly searching for a clear perception of your company. One way — well, two ways — to rise above the din is […]
The advantages of a living trust for your estate plan
If you own substantial assets, you may want to consider setting up a living trust to bypass the probate process. Probate is a court-supervised procedure that ensures a deceased individual’s assets are distributed appropriately. However, it often involves complex legal steps, additional costs and public disclosure of your financial matters. A living trust can help you avoid these issues. From a federal income tax standpoint, a living trust is disregarded while you’re alive. The IRS treats the assets in the trust as if they’re still owned by you personally, meaning you must continue to report any income or deductions from those assets on your individual tax return. Contact us to learn more.
Family business focus: Addressing estate and succession planning
An important issue for many family business owners is integrating estate planning and succession planning. Transferring ownership to the younger generation as early as possible allows you to remove future appreciation from your estate, minimizing estate taxes. You may also have family members who aren’t involved in the business. Providing these heirs with equity interests that don’t confer control is feasible with proper planning. And there are ways to transfer business interests without immediately giving up control. Examples include offering nonvoting stock, creating a trust, forming a family limited partnership and implementing an employee stock ownership plan. Contact us for help.
Digital assets and taxes: What you need to know
Crypto is on the IRS’s radar! If you bought, sold, mined, staked or were paid in digital assets like Bitcoin, Ethereum or NFTs, you must report it on your tax return. Near the top of your federal tax return, there’s a question asking if you received or disposed of any digital assets during the year. You must answer either “yes” or “no” and report any gains or losses. If you just hold assets or transfer them between wallets, you can answer “no.” But if you sell or convert, it’s a taxable event. Keep records of transactions, including fair market values and dates. If you receive a Form 1099 for crypto, keep in mind the IRS did too. Questions? Contact us. We’ll make sure you stay compliant.
The IRS recently announced 2026 amounts for Health Savings Accounts
The IRS recently released next year’s inflation-adjusted amounts for Health Savings Accounts. In 2026, the annual contribution limit for an individual with self-only coverage under a high-deductible health plan (HDHP) will be $4,400. For an individual with family coverage, it will be $8,750. These are up from $4,300 and $8,550, respectively, in 2025. In 2026, an HDHP will be a health plan with an annual deductible that isn’t less than $1,700 for self-only coverage or $3,400 for family coverage. And in 2026, annual out-of-pocket expenses (deductibles, co-payments and other amounts, but not premiums) won’t be able to exceed $8,500 for self-only coverage or $17,000 for family coverage.
How your business can sharpen its marketing strategy
Creating a marketing strategy for your business isn’t a “one and done” activity. You need to continuously adapt it to factors such as the economy, marketplace changes, and customer and prospect preferences. First, refine your target selection. Consider each prospect, customer and target group as an investment. Estimate your net profit after subtracting production, sales and customer service costs. Also, think about price points. Setting prices low may attract buyers, but it can adversely affect profitability. Last, craft messaging carefully. You may need to tailor it to different market segments, but be sure to stay consistent. Contact us for help managing your marketing costs and pricing.
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