Businesses can strengthen their financial positions with careful AP management
Careful accounts payable (AP) management is critical to strengthening your business’s financial position. For most companies, it rests upon three fundamental building blocks. The first is documentation. You’ve got to accurately track how much your business owes and to whom. The second building block is control of approvals. Before any invoice is paid, an authorized party in your business should confirm it’s legitimate. The third is the timing of payments. Striking the right balance between paying on time but not too soon is key. Digitizing your AP records should make them easier to track and enable you to analyze metrics to spot troubling trends or seize opportunities. Contact us for help.
Key Tax Changes from the One Big Beautiful Bill Act
On July 4, 2025, fireworks were not the only things lighting up the sky— The president signed the One Big Beautiful Bill Act, a sweeping reform poised to reshape personal and business tax planning. Whether you are a small business owner, or just someone trying to figure out if your car loan interest is now […]
Safe harbor 401(k)s offer businesses a simpler route to a retirement plan
When many small to midsize businesses are ready to sponsor a qualified retirement plan, they encounter a common obstacle: complex administrative requirements. If that’s the only thing holding you back, consider a safe harbor 401(k). Under one of these plans, you agree to make qualifying mandatory contributions to participants’ accounts. In exchange, the IRS will waive the annual nondiscrimination testing requirement that typically applies to 401(k)s. The biggest risk is committing to making those employer contributions. Once you do, you generally can’t reduce or suspend them without triggering additional IRS requirements or risking plan disqualification. Contact us for more info.
Milestone moments: How age affects certain tax provisions
They say age is just a number. But it’s much more than that in tax law. That’s because different tax rules kick in at specific ages. For example, the kiddie tax can potentially apply to an individual until age 24. After age 59½, you can receive distributions from tax-favored retirement accounts without being socked with the 10% early distribution penalty tax. And after reaching 73, you generally must begin taking annual required minimum distributions (RMDs) from tax-favored retirement accounts (traditional IRAs, SEPs, 401(k)s and SIMPLEs) and pay the resulting income tax. If you don’t withdraw at least the RMD amount for the year, you can be assessed a penalty tax. Contact us with questions.
Startup costs and taxes: What you need to know before filing
The U.S. Census Bureau reports there were nearly 447,000 new business applications in May of 2025. If you’re one of the entrepreneurs, you may not know that many expenses incurred by start-ups can’t currently be deducted on your tax return. Some likely must be amortized over time. You may be able to deduct up to $5,000 currently, but the deduction is reduced by the amount your total start-up costs exceed $50,000. You can also deduct up to $5,000 of the organizational costs of creating a corporation or partnership. Other rules and requirements apply. Contact us if you have tax questions about a start-up business.
Handle with care: Upgrading your company’s accounting software
Every company’s accounting software needs to be secure, user-friendly, and appropriate for its size and needs. To keep all those factors in line, you’ve got to handle accounting software upgrades with care. Here are five fundamental best practices: 1) Plan upgrades strategically; the right tipping point depends on various factors, including your annual revenue. 2) Don’t rely on generic software if an industry-specific solution is available. 3) Mind important details, such as integration and mobile access. 4) Set a detailed budget for your upgrade; beware of over- or underspending. 5) Ask for help; we can assess your current accounting software and determine whether an upgrade is in order.
Is college financial aid taxable? A crash course for families
If your college student is fortunate enough to receive some financial aid, what are the tax implications? It depends. Gift aid, which is money that a student doesn’t have to work for, is often tax-free. There are certain requirements, such as the recipient must be a degree candidate. Gift aid may be called a scholarship, fellowship, grant, tuition discount or tuition reduction. In arrangements that require a student to work in exchange for money, payments are considered compensation from employment and must be reported as income on the student’s federal tax return. However, that doesn’t necessarily mean he or she will owe taxes. Contact us with questions about what’s taxable and what’s not.
DOs and DON’Ts to help protect your business expense deductions
If you’re claiming business expense deductions for meals, a home office, vehicles and other items, the IRS may closely review them. It’s important to comply with the strict tax law substantiation requirements for these expenses. Keep these guidelines in mind: DO keep detailed, accurate records. For each meal expense, record the amount, date, place, business purpose, and business relationship of anyone you dine with. If you reimburse employees for expenses, DO ensure they’re complying with all the rules. DON’T reconstruct expense logs at year end or wait until you receive an IRS notice. Take time to record the details in a log or diary or on a receipt at the time of the event or soon after.
Run a more agile company with cross-training
Business owners: Skilled employees play a huge role in your ability to run an agile company. One way to put them on optimal footing is cross-training. Simply defined, this is teaching employees to understand and perform responsibilities and tasks outside the scope of their primary job duties. Potential advantages include reducing the impact of absences, boosting productivity, gaining fresh perspectives and strengthening internal controls. You may even want to require cross-training for jobs directly related to financial management, sensitive data or high-value customers. Just stay cognizant of employees’ workloads, stress levels and morale. Contact us for help managing the costs involved.
Are you missing a valuable tax deduction for Medicare premiums?
If you’re 65 or older and enrolled in basic Medicare, you may need to pay additional premiums to obtain the level of coverage you desire. These premiums can be significant, particularly for married couples where both spouses are paying them. The good news? You might be eligible for a tax break on those premiums. However, claiming medical expenses on your tax return can be challenging. For the 2025 tax year, medical expenses are deductible only if you itemize — and only the portion that exceeds 7.5% of your adjusted gross income qualifies. We can help you assess whether it’s more beneficial to take the standard deduction or to itemize and include medical expenses on your return.
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