Stop Wasting Time! Use QuickBooks Online Rules to Streamline Your Books  7 Apr 2025, 4:21 pm

As tax season ramps up, accountants and business owners alike are navigating a flood of transactions. Between reconciling books, preparing financial statements, and ensuring compliance with IRS guidelines, manually categorizing every bank feed entry in QuickBooks® Online (QBO) can be a time-consuming burden. 

That’s where Rules come in. QuickBooks® Online’s Rules feature allows accountants to automate the categorization of transactions, ensuring accuracy, saving time, and making month-end reconciliations a breeze. By leveraging this powerful tool, accountants can help clients maintain cleaner financial records, reduce errors, and improve tax reporting—all while freeing up valuable hours for more strategic advisory work. 

What Are QuickBooks Online Rules? 

Transaction Rules are automated filters that categorize bank and credit card transactions based on predefined criteria. Instead of manually reviewing each expense or deposit, QuickBooks automatically assigns the correct category, class, and even memo details based on the rule’s settings. 

For accountants managing multiple clients, this means: 

1. Less manual data entry – Automate repetitive tasks and reduce human errors. 

2. More consistent reporting – Ensure every transaction follows proper categorization. 

3. Faster reconciliations – Spend less time correcting misclassified expenses. 

4. Better tax preparation – Eliminate inconsistencies that could cause IRS red flags. 
    
    

How to Set Up Rules in QuickBooks Online 
 
Setting up Rules is straightforward and can transform the efficiency of your accounting workflow. Follow these steps to create and manage transaction rules for yourself or your clients: 

1. Access the Banking Center 

11. Log into QuickBooks Online. 

12. From the left-hand menu, navigate to Transactions > Banking. 

13. Select the appropriate bank account or credit card feed. 

2. Identify Recurring Transactions 

Look for transactions that frequently appear in the For Review section. These often include: 

1. Utilities (Electricity, internet, phone bills) 

2. Software subscriptions (QuickBooks, Adobe, Zoom) 

3. Frequent vendors (UPS, Uber, office supply stores) 

3. Create a Rule 

1. Click on Manage Rules in the Banking tab, then select New Rule. 

2. Name your rule (e.g., “Uber = Travel Expenses”). 

3. Set conditions: You can filter by Bank Text, Amount, or Account Type. 

4. Choose the category QuickBooks should apply to matching transactions. 

4. Automate the Process 

1. Decide whether to automatically confirm transactions or send them for review. 

2. Click Save & Apply, and QuickBooks will begin categorizing transactions according to your rule. 

 
Advanced Tips for Accountants 
 
Use ‘AND’ & ‘OR’ Conditions for Granular Control 
QuickBooks allows multiple conditions per rule. For instance, you can create a single rule that categorizes all payments to “AT&T” and “Verizon” under “Telecom Expenses” using an OR condition—keeping your Chart of Accounts more concise. 
 
Set Priority for Overlapping Rules 
If two or more rules might apply to a transaction, QuickBooks applies the highest-priority rule first. Review your list of rules and drag the most important ones to the top. 
 
Review Before Auto-Confirming Large Transactions 
While automation is powerful, high-value transactions ($5,000+) should still be manually reviewed before categorization. You can set up a rule to flag these transactions for additional scrutiny. 
 
Utilize Classes & Locations for Deeper Insights 
Rules can also assign Classes and Locations, allowing businesses with multiple departments or branches to segment transactions effectively. 
 
Use Reports to Validate Rule Accuracy 
Run the Profit & Loss and Transaction Detail by Account reports to ensure rules are categorizing transactions correctly. Adjust as needed to prevent errors. 
 
Why Accountants Should Encourage Clients to Use Rules 
 
Helping your clients set up Rules can significantly reduce the time spent on bookkeeping throughout the year. Instead of scrambling to categorize transactions before tax deadlines, businesses can maintain accurate books in real time. 
 
Encourage clients to: 

• Regularly review their Rules to adapt to business changes. 

• Use vendor-specific rules to keep their Chart of Accounts organized. 

• Check bank feeds weekly to ensure accuracy before transactions are posted. 

 
With more businesses moving toward automated bookkeeping, firms that embrace QuickBooks Online’s Rules feature will gain a competitive edge in efficiency, accuracy, and client satisfaction. 
 
QuickBooks Online Rules are an invaluable tool for accountants and tax professionals looking to streamline their workflow ahead of tax season. By automating transaction categorization, businesses can reduce bookkeeping errors, improve reporting accuracy, and focus on financial strategy rather than data entry. 
 
If you or your clients need assistance setting-up Rules in QuickBooks Online, contact our office today—we’ll help optimize your QuickBooks setup for a smoother, more efficient year ahead. 
 

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IRS Unveils Top Tax Scams and Threats to Watch For  7 Apr 2025, 4:18 pm

The Internal Revenue Service (IRS) has released its annual “Dirty Dozen” list of tax scams for 2025, cautioning taxpayers, businesses, and tax professionals to remain vigilant against prevalent schemes that endanger their tax and financial data. These fraudulent tactics, which range from phishing email schemes to deceptive tax credits, tend to surge during the tax filing season as individuals prepare their tax returns. However, they can occur year-round as fraudsters continuously seek opportunities to illicitly obtain money, personal information, and data. 

The “Dirty Dozen” campaign features 12 scams and schemes that pose significant threats to taxpayers. While it is not a legal document or a formal list of enforcement priorities, this educational initiative aims to increase awareness and shield taxpayers and tax professionals from prevalent tax scams and fraudulent activities. 

Scammers persistently exploit the tax season to deceive taxpayers into various traps, which can result in identity theft or mislead individuals into claiming undeserved tax credits. For over two decades, the IRS has emphasized the “Dirty Dozen” through extensive communication and educational outreach as part of a broader mission to safeguard taxpayers from fraud. 

Together with efforts from the Security Summit, the IRS has collaborated with state tax authorities, national tax software companies, the financial industry, and tax professionals for over a decade. This coalition educates the public about scams and fraudulent schemes. The “Dirty Dozen” list often warns against tax-related identity theft, supporting the Security Summit’s ongoing efforts, which have successfully protected millions of taxpayers and billions in refund fraud. 

To further these protective measures against ever-evolving scams, the IRS’s 2025 “Dirty Dozen” list emphasizes the following 12 significant threats: 

Email Phishing Scams – The IRS continues to encounter numerous email and text scams targeting taxpayers and associated parties. It’s crucial for taxpayers and tax professionals to remain vigilant against deceptive communications from entities replicating legitimate organizations within the tax and financial sectors, including the IRS, state tax agencies, and tax software companies. These scammers frequently send unsolicited texts or emails designed to trick unsuspecting individuals into disclosing valuable personal and financial information, potentially leading to identity theft. The two primary types of these scams are: 

• Phishing: This involves emails from fraudsters pretending to be the IRS. Often, these emails use tactics like promising a fake tax refund or threatening legal or criminal action for tax fraud to manipulate victims into the scam. 

• Smishing: This pertains to text or smartphone SMS messages, where scammers employ alarming phrases such as “Your account has been put on hold” or “Unusual Activity Report,” accompanied by a fake “Solutions” link to allegedly restore the recipient’s account. The suggestion of unexpected tax refunds can also be used as bait by these scammers. 

Remember, never click on unsolicited communications claiming to be from the IRS, as they might discreetly install malware. These actions may also pave the way for malicious hackers to deploy ransomware, preventing legitimate users from accessing their systems and files. 

The IRS offers comprehensive information to help individuals understand and report these email scams. 

Bad Social Media Advice – In 2025, the issue of incorrect tax information on social media remains a significant concern, as it has the potential to mislead honest taxpayers and lead to identity theft and tax complications. Many social media platforms, including TikTok, frequently share inaccurate or misleading tax advice, with some posts even encouraging the misuse of standard tax documents like Form W-2. 

The IRS advises against falling for these scams and strongly recommend that individuals rely on tax information from trusted sources such as the IRS and qualified tax professionals. The IRS also reminds taxpayers that those who knowingly file fraudulent tax returns may face serious civil and criminal penalties. 

IRS Individual Online Account Help from Scammers – Swindlers can pose as a “helpful” third party and offer to help create a taxpayer’s IRS Individual Online Account at IRS.gov. In reality, no help is needed, and the agency offers tips on how to sign up and avoid scams. The IRS Individual Online Account provides taxpayers with valuable personal tax information. But watch out: Third parties making these offers will try to steal a taxpayer’s personal information and try to submit fraudulent tax returns in the victim’s name to get a big refund. 

Fake Charities – Fraudulent charities consistently present a problem, often intensifying during crises or natural disasters. These scams are set up by individuals aiming to exploit the public’s generosity. They primarily seek money and personal information, which can later be used for identity theft and other exploits against victims. 

For taxpayers who contribute money or goods to charity, there is potential to claim a deduction on their federal tax return if they choose to itemize deductions. However, these charitable donations are only eligible for tax deductions if they are directed to a tax-exempt organization officially recognized by the IRS.  The validity of charities can be checked on the IRS site as well as the Charity Navigator site.  

False Fuel Tax Credit Claims  – In the past year, a significant issue arose concerning taxpayers who were misled into believing they qualified for the Fuel Tax Credit. This credit is specifically intended for off-highway business and farming use and does not apply to the majority of taxpayers. Nonetheless, some unethical tax return preparers and promoters, including individuals on social media platforms, have persistently enticed taxpayers to erroneously claim the credit as a strategy to inflate their refunds. The IRS has observed a rise in the promotion of filing these refundable credits through Form 4136, Credit for Federal Tax Paid on Fuels. The IRS strongly advises individuals to seek detailed information to ensure they are accurately claiming this credit. 

Credits for Sick Leave and Family Leave – This specialized credit was made available for self-employed individuals specifically for the tax years 2020 and 2021, coinciding with the pandemic. Please note that this credit is not applicable for subsequent tax years. The Internal Revenue Service (IRS) has observed recurrent instances of taxpayers erroneously utilizing Form 7202, designed for Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals, to improperly claim credits based on income earned as an employee, rather than as a self-employed individual. 

Bogus Self-employment Tax Credit – Misinformation continues to spread on social media concerning a fictitious “Self-Employment Tax Credit,” misleading taxpayers into submitting erroneous claims. Promoters falsely advertise it as an opportunity for self-employed individuals and gig workers to receive substantial payments related to the COVID-19 pandemic period. This mirrors the deceptive marketing practices associated with the Employee Retention Credit, with inaccurate claims circulating that suggest widespread eligibility for a tax credit and payments of up to $32,000, when in fact, this is not the case. 

In actuality, the credit being misrepresented on social media is not the “Self-Employment Tax Credit” but rather the more restrictive and technical Credits for Sick Leave and Family Leave. Many individuals do not qualify for these credits, and the IRS is conducting thorough reviews of claims submitted under this provision. Taxpayers are advised to file claims under these credits at their own risk. 

Improper Household Employment Taxes – Taxpayers “invent” fictional household employees and then file Schedule H (Form 1040), Household Employment Taxes, to claim a refund based on false sick and family medical leave wages they never paid. 

Overstated Withholding Scam – A recent fraudulent scheme circulating on social media urges individuals to fraudulently complete Form W-2, Wage and Tax Statement, or other forms such as Form 1099-NEC and other 1099 documents, with fabricated income and withholding details. 

This overstated withholding scheme involves scam artists advising individuals to invent substantial income and withholding figures, as well as a fictitious employer supplying these amounts. These scam artists then direct individuals to electronically file the falsified tax return, aiming to secure a considerable refund based on the inflated, yet fraudulent, withholding amounts. 

If the IRS cannot authenticate the wages, income, or withholding credits claimed in the tax return, the processing of the tax refund will be suspended pending additional review. Taxpayers are advised to always file a thorough and truthful tax return, utilizing only legitimate information returns, such as those issued by an employer (e.g., Form W-2), to accurately complete their returns. 

Numerous variations of the overstated withholding credit scheme exist, including those utilizing Forms W-2 and W-2G; Forms 1099-R, 1099-NEC, 1099-DIV, 1099-OID, and 1099-B; as well as implicating entities like the Alaskan Dividend Fund, Schedule K-1 with Withholding Reported, and other unspecified sources claiming withholding credit. 

Misleading Offers in Compromise  

The Offers in Compromise (OIC) program is an important program that helps people settle their federal tax debts when they are unable to pay in full. But “mills” can aggressively promote Offers in Compromise in misleading ways to people who clearly don’t meet the qualifications, frequently costing taxpayers thousands of dollars. A taxpayer can check their eligibility for free using the IRS Offer in Compromise Pre-Qualifier tool. 

Ghost Tax Return Preparers  

Most tax preparers provide outstanding and professional service. However, people should be careful of shady tax professionals and watch for common warning signs, including charging a fee based on the size of the refund. A major red flag or bad sign is when the tax preparer is unwilling to sign the return. Avoid these “ghost” preparers, who will prepare a tax return but refuse to sign or include their IRS Preparer Tax Identification Number (PTIN) as required by law. Taxpayers should never sign a blank or incomplete return. Instead, the IRS reminds taxpayers to turn to a trusted tax professional for help. 

New Client Scams and Spear Phishing  

In 2025, the IRS continues to observe the persistent “new client” scam, characterized by spear phishing attacks specifically targeting tax professionals. Cybercriminals masquerade as prospective clients to deceive tax professionals and other businesses into engaging with their emails. Upon response, the scammers distribute malicious attachments or URLs designed to compromise the preparer’s computer systems, consequently granting attackers access to sensitive client data. 

This technique, known as phishing, involves emails or text messages crafted to extract personal information from recipients, while spear phishing refers to a more focused attempt aimed at a particular organization or business. Tax professionals are frequently preyed upon by such scams. The heightened threat from spear phishing lies in its capacity to not only steal client data but also seize the tax professional’s identity, facilitating the filing of fraudulent tax returns using the purloined information. 

Businesses and individuals, including tax preparers, must diligently scrutinize for any suspicious requests or anomalous behavior before divulging sensitive information or responding to emails. Warning indicators often include poorly constructed sentences and peculiar word choices. It is crucial to recognize that scammers, upon accessing a compromised email account, can discover legitimate emails previously sent by victims to their tax professionals. 

While professional tax preparers are mindful of these scams, ghost preparers often neglect to exercise such caution, potentially exacerbating the risk of data breaches and fraudulent activities. 

If you have been victim to any of these or other scams or if your identity is stolen, your life can become a nightmare.  Identity thieves will even file tax returns under your Social Security number claiming huge refunds and leaving you with a horrendous mess to clean up with the IRS. Don’t be a victim, contact our office for assistance.   

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FinCEN Rule Ends BOI Reporting for Domestic Companies  7 Apr 2025, 4:14 pm

Business owners across the United States can breathe a sigh of relief with the latest announcement from the Financial Crimes Enforcement Network (FinCEN) about BOI reporting. On March 21, 2025, FinCEN revealed an interim final rule that lifts the burden of Beneficial Ownership Information (BOI) reporting requirements on domestic companies. This move, aimed at relieving compliance pressures, marks a favorable turning point for domestic businesses previously saddled with onerous reporting duties. 

What This Means for Domestic Companies – Thanks to FinCEN’s decision, domestic companies, which were previously required to comply with the Corporate Transparency Act’s BOI reporting rules, will no longer need to file initial or updated BOI reports. This exemption reflects an understanding of the operational and financial strain such obligations can place on small and large enterprises alike. Instead of focusing resources on fulfilling these requirements, businesses can redirect their efforts towards growth and innovation. 

The relief granted to domestic enterprises is part of an ongoing effort by regulators to alleviate unnecessary bureaucratic burdens, ensuring that businesses can operate without undue hindrance. This was emphasized by the exemption issued under specific sections of the United States Code (31 U.S.C. 5318(a)(7) and 31 U.S.C. 5336(a)(11)(B)(xxiv)), which underscores the government’s resolve to support domestic commerce. 

The Continued Responsibility for Foreign Companies – While domestic companies received a reprieve, foreign entities were not afforded the same leniency. Foreign companies registered to conduct business in the United States must continue adhering to the established BOI reporting framework. This requirement ensures that foreign businesses maintain transparency and financial integrity when operating across U.S. borders. 

The ongoing application of these rules to foreign companies is crucial for safeguarding the U.S. financial infrastructure from exploitation by illicit actors. Given the global nature of financial crime, particularly regarding money laundering and evasion tactics leveraged through shell companies, these measures play a key role in national security efforts.  

However, the interim final rule does exempt (1) foreign reporting companies from having to report the BOI of any U.S. persons who are beneficial owners of the foreign reporting company and (2) U.S. persons from having to provide such information to any foreign reporting company for which they are a beneficial owner. 

Understanding the Purpose Behind BOI Reporting – But what exactly is BOI reporting, and why is it considered significant? At its core, BOI reporting mandates that certain entities disclose information about the individuals who own, control, or benefit from the entity. This framework is designed to deter illicit activities, including terrorism financing, money laundering, and tax fraud. 

The collection and transparency of beneficial ownership information allow regulatory authorities to trace and sanction companies involved in malfeasance, protecting not only national integrity but also the global financial system. 

A Balance Between Transparency and Burden – FinCEN’s current approach strikes a delicate balance between necessary oversight and unnecessary obstruction. The aim is not only to diminish the paperwork burden on legitimate businesses but also to enhance the efficacy of regulations targeting potential threats. 

While domestic enterprises enjoy newfound relief, they do so under a system that ensures sound regulatory oversight remains in place where needed. Foreign entities, meanwhile, are tasked with demonstrating transparency to ensure their operations align with U.S. laws and financial security standards. 

Looking Ahead – This interim ruling by FinCEN will be reviewed further within the year, with consultations from stakeholders and the public helping inform the final regulatory outcome. Despite the current exemptions, diligent monitoring of both domestic and foreign operations will continue under the revised regulatory structures announced. 

For U.S. business owners, this revised reporting rule is a moment to celebrate a more flexible operating landscape. As stakeholders look forward to the finalization of these rules, they can embrace this opportunity to leverage resources on business growth without the looming burden of complex compliance duties. 

Overall, the FinCEN announcement offers a pragmatic approach that maintains the delicate balance between compliance enforcement and operational freedom.  

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Navigating the Complexities of Estimated Tax Payments to Avoid Underpayment Penalties  7 Apr 2025, 4:09 pm

Tax planning is a crucial aspect of financial management, yet it often remains underutilized by many taxpayers. One area that frequently causes confusion and potential financial strain is the management of estimated tax payments and the associated penalties for underpayment. Understanding the intricacies of estimated safe harbors, the requirement for payments to be made ratably, and the strategies to mitigate penalties can significantly impact a taxpayer’s financial health. This article delves into these topics, offering insights into how taxpayers can navigate these challenges effectively. 

Understanding Underestimated Penalties – Underpayment penalties can catch taxpayers off guard, especially when they fail to meet the required estimated tax payments. The IRS imposes these penalties to encourage timely tax payments throughout the year, rather than a lump sum at the end. The penalty is essentially an interest charge on the amount of tax that should have been paid during the year but wasn’t. This penalty can be substantial, especially for those with fluctuating incomes or those who experience a significant increase in income without adjusting their estimated payments accordingly. 

Estimated Payment Safe Harbors – To avoid underpayment penalties, taxpayers can rely on safe harbor rules. These rules provide a guideline for the minimum amount that must be paid to avoid penalties. Generally, taxpayers can avoid penalties if their total tax payments equal or exceed: 

• 90% of the current year’s tax liability or   

• 100% of the prior year’s tax liability.  

However, for high-income taxpayers with an adjusted gross income (AGI) over $150,000, the safe harbor threshold increases to 110% of the prior year’s tax liability. 

Ratable Payments Requirement – One critical aspect of estimated tax payments is the requirement for these payments to be made ratably throughout the year. This means that taxpayers should aim to make equal payments each quarter to avoid penalties. However, income is not always received evenly throughout the year, which can complicate this requirement. For instance, if a taxpayer receives a significant portion of their income in the later part of the year, they may find themselves underpaid for earlier quarters, leading to penalties. 

Uneven Quarters and Computing Penalties – The challenge of uneven income can be addressed by understanding how penalties are computed. The IRS calculates penalties on a quarterly basis, meaning that underpayments in one quarter cannot be offset by overpayments in a later quarter. This can be particularly problematic for those with seasonal or sporadic income. To mitigate this, taxpayers can use IRS Form 2210, which allows them to annualize their income and potentially reduce or eliminate penalties by showing that their income was not received evenly throughout the year. 

Workarounds: Increasing Withholding and Retirement Plan Distributions: 

• Increase Withholding – One effective workaround for managing underpayment penalties is to increase income tax withholding for the balance of the year. Unlike estimated payments, withholding is considered paid equally throughout the year, regardless of when it is actually withheld. This means that increasing withholding later in the year can help cover any shortfalls from earlier quarters. The source of the withholding tax need not match the source of the income. For example, a taxpayer who sold a piece of land for a large capital gain could increase their wage withholding to cover the extra tax. 

• Retirement Plan Distribution – Another strategy involves taking a substantial distribution from a retirement plan, which is subject to a 20% withholding. The taxpayer can then roll the distribution back into the plan within 60 days, using other funds to make up the withholding. This approach can be beneficial, but it requires careful planning to ensure compliance with the one rollover per 12-month period rule. 

Taxpayers who must take a required minimum distribution (RMD) from their IRA or other retirement plan, generally those age 73 and older, and who haven’t made sufficient estimated tax payments during the year to cover their tax, should consider having tax withheld from their RMD. Some financial institutions limit the withholding amount to a fixed percentage of the distribution, while others are more flexible in the withholding rate. Using this method to make up for underestimated payments could make the difference in owing a penalty or not. 

• Annualized Exception – For taxpayers with uneven income, the annualized exception using IRS Form 2210 can be a valuable tool. This form allows taxpayers to calculate their required estimated payments based on the actual income received during each quarter, rather than assuming equal income throughout the year. By doing so, taxpayers can potentially reduce or eliminate underpayment penalties by demonstrating that their income was not received evenly. 

Managing estimated tax payments and avoiding underpayment penalties requires careful planning and a thorough understanding of IRS rules and regulations. By leveraging safe harbor provisions, understanding the requirement for ratable payments, and utilizing strategies such as increased withholding and retirement plan distributions, taxpayers can effectively navigate these challenges.  

If you are expecting your pre-payments of tax to be substantially underpaid and wish to develop a strategy to avoid or mitigate underpayment penalties, please contact our office.  But if you wait too late in the year, it might not provide enough time before the end of the year to make any effective changes.    

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QuickBooks Made Simple: 5 Expert Tips for Getting Started  17 Mar 2025, 2:45 pm

QuickBooks is one of the most powerful tools on the market for managing small business finances, but getting started can feel daunting. Setting up your account properly and taking advantage of key features is the best way to save time and avoid headaches when tax season rolls around – we promise, your tax professional will thank you for staying on top of your books all year long!  

Here are five detailed tips to help you navigate QuickBooks with confidence. 

1. Customize Your Chart of Accounts 

Your Chart of Accounts is the backbone of your bookkeeping system, and tailoring it to your business is critical. For example, an auto repair garage might include categories like “Parts Inventory” and “Repair Labor,” while a lawyer would focus on “Billable Hours” and “Client Retainers.” 

• How to Access It: Go to the Settings menu in the top right corner, select Chart of Accounts, and click New to add categories or edit existing ones. 

• Pro Tip: Break down your categories to match your income streams and expenses. For example, if you’re a retailer, you might include “Online Sales” and “In-Store Sales” as separate categories. This specificity makes reporting and tax preparation easier. 

2. Link Your Bank and Credit Accounts 

Syncing your financial accounts with QuickBooks automates transaction tracking and reduces manual data entry. This saves time and minimizes the risk of human error, ensuring your financial data is accurate and up-to-date when you need it. 

• How to Do It: Click Banking from the left-hand menu, then choose Link Account. Follow the prompts to connect your bank or credit card. 

• Pro Tip: After syncing, QuickBooks will pull in transactions automatically. Review these weekly under the Banking tab to categorize them correctly. Doing this regularly keeps your books up-to-date and avoids a year-end rush. 

3. Set Up and Use Projects or Classes for Better Tracking 

QuickBooks offers powerful features like Projects and Classes to track revenue and expenses for specific initiatives or departments. These tools provide a detailed breakdown of your financial activities, helping you analyze profitability and allocate resources more effectively for each project or division. 

• How to Access It: Enable these features under Settings > Account and Settings > Advanced, then look for Projects or Track Classes. 

• Why It Matters: If, for instance, you’re running a seasonal marketing campaign, you can group all related income and expenses under one project. This gives you a clear picture of the campaign’s profitability. 

4. Master Recurring Transactions 

Recurring transactions can save you significant time if you have clients who need regular invoicing or vendors you pay monthly. Automating these repetitive tasks lets you focus on growing your business while making sure you never miss payments or invoices. 

• How to Set It Up: When creating an invoice, bill, or expense, look for the Make Recurring option at the bottom of the form. Customize the frequency, amount, and start/end dates. 

• Pro Tip: Automate fixed costs like rent or subscription services. You can review all recurring transactions under Lists > Recurring Transactions. 

5. Leverage QuickBooks Reports for Insights 

QuickBooks comes with built-in reports that give you a comprehensive view of your business’s financial health. These reports allow you to identify trends, monitor cash flow, and make data-driven decisions to improve profitability and growth. 

• How to Find Reports: Navigate to Reports in the left-hand menu. You’ll see a list of common reports, including Profit & Loss, Balance Sheet, and Cash Flow Statement. 

• Pro Tip: Click Customize Report at the top to customize reports to your needs. You can adjust date ranges, filter by customer, or even compare performance over time. Save these customizations to access them quickly in the future. 

Extra Tips for Tax Season Readiness 

1. Reconcile Regularly: Under the Banking menu, click Reconcile to match your QuickBooks records with your bank statements. Doing this monthly avoids discrepancies and errors. 

2. Track Receipts with the Mobile App: Download the QuickBooks mobile app and use it to snap pictures of receipts. They’ll be automatically uploaded and matched to transactions, making expense tracking a breeze. 

3. Use Accountant Access: QuickBooks allows you to invite your accountant directly into the platform. Go to Settings > Manage Users > Invite Accountant to streamline collaboration during tax season. 

 
QuickBooks does much more than bookkeeping for small business owners—it can mimic an entire finance department when used effectively. From creating a customized Chart of Accounts to taking advantage of detailed reports, these steps will help you stay organized and reduce stress during tax season (and all year long!) 

The post QuickBooks Made Simple: 5 Expert Tips for Getting Started  appeared first on Sansiveri, Kimball & Co., LLP.

Maximizing Small Business Deductions: A Guide for Savvy SMB Owners  17 Mar 2025, 2:43 pm

Running a small business is a round-the-clock hustle. You juggle employees, invoices, marketing, and a million other tasks that always demand your attention. The last thing you want is to overlook a perfectly legal tax deduction that could save you thousands—or worse, get stuck paying more than your fair share. 

Ready for a quick win? Let’s dive into some powerful tax deductions that small business owners often miss—and learn how you can bank that extra cash instead. 

1. Vehicle Expenses: More Than Just Mileage 

Think of all the errands you run in your car for your business—client meetups, supply runs, on-site visits. Each of those trips could be padding your deduction total instead of draining your bank account on gas. The IRS offers two routes here: 

• Standard Mileage Rate: Track how many miles you drive for business and multiply by the current IRS mileage rate. 

• Actual Expenses: Deduct a portion of your actual vehicle expenses (gas, insurance, repairs, etc.). 

Pro Tip: Choose the method that nets you the highest deduction. But remember—meticulous record-keeping is key. Apps like MileIQ are a lifesaver for logging those miles.  

2. Home Office Deduction: It’s Not Just for Freelancers 

If you use a portion of your home exclusively for business, you’re sitting on a deduction goldmine. That means a chunk of your mortgage or rent, utilities, and even repairs could be deductible on your business return. 

• Exclusive Use: Keep that space business-only—no letting the kids watch Netflix there at night. 

• Regular Use: Make sure you use this space regularly. (A corner desk you touch once a year won’t qualify.) 

This one’s a game-changer when done correctly, so don’t overlook it if you work from home. 

3. Equipment Depreciation: Turbocharge Your Assets 

Buy a new laptop this year? What about that top-of-the-line printer or ergonomic office chair? 

• Section 179: Deduct the full purchase price of qualifying equipment in the year you buy it. 

• Depreciation: Spread the cost out over the asset’s useful life if it makes more financial sense. 

The right strategy can seriously reduce your taxable income—so choose wisely based on your cash flow and growth plans. 

Beyond the Basics: Your Custom Roadmap to Bigger Savings 

Health insurance premiums, travel costs, even business meals—can all add up to major deductions if you know how to document them properly. It’s not just about what you can deduct, but how to ensure the IRS stays happy while you claim everything you’re entitled to. 

Why Going DIY Could Cost You 

Sure, you can try to handle taxes on your own. But with so many moving parts in the tax code, one slip could cost you big time—or leave dollars on the table that you could have reinvested in your business. Working with a tax pro isn’t just an expense. It’s an investment in peace of mind and bigger returns. 

Let’s Make the Tax Code Work for You 

Here’s the bottom line: Every dollar saved in taxes is a dollar that can drive your business forward—whether that’s hiring new talent, upgrading equipment, or simply boosting your personal paycheck. Don’t let hidden tax breaks slip through the cracks. 

Looking to supercharge your deductions? That’s what we’re here for. Let’s take a deep dive into your finances, tailor the perfect tax strategy, and keep more money where it belongs: in your business. 

Get in touch today for a consultation, and let’s start checking off those hidden tax opportunities—together. 

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How the Trump Administration’s Tariffs Are Shaking Up SMBs—and What You Can Do About It  17 Mar 2025, 2:39 pm

Tariffs aren’t just numbers on a spreadsheet anymore. They’re eating into your profit margins, creating supplier drama, and forcing you to rework your entire budget. If you’re an SMB owner or financial manager, you’re probably wondering how to navigate this new normal—especially when these U.S. trade policies keep shifting. 

Let’s pull back the curtain on tariffs, their direct impact on your bottom line, and the practical steps you can take right now to protect your business. 

Tariffs 101: A Quick Refresher 

Think of a tariff as a tax on imported goods. According to the Tax Foundation, these costs often get passed on to the businesses and consumers, not necessarily absorbed by foreign exporters. The Trump administration has imposed tariffs on goods from Canada, Mexico, and China, as noted in this White House Fact Sheet. 

When you bring products into the U.S., customs officials collect tariffs at the border. If you’re not monitoring these extra fees, they can quietly bloat your cost of goods, making your once-stable budget feel more like a moving target. 

The Domino Effect on Your SMB 

1. Budget & Forecasting Turbulence 

• Unpredictable Rates: With changing tariff policies, you might need multiple budgeting scenarios to cover best-, mid-, and worst-case rates. 

• Profit Margin Pressure: Every extra fee to import materials chips away at your bottom line, which can mean less cash flow and tighter profit margins. 
   

2. Supply Chain Dilemmas 

• Stick with Your Current Suppliers: Accepting tariff costs might be simpler in the short term, but it’s risky if rates spike again. 

• Move to Other Countries: Lower or no tariffs can stabilize costs, but vetting new suppliers takes time (and trust). 

• Source Domestically: You might avoid tariffs, yet domestic production often has higher labor costs—so you’ll want to weigh shipping savings against those increased expenses. 
   

3. Impact on Tax Returns & Liability 

• Tariffs as ‘Extra’ Costs: Tariffs get baked into your import invoices, so they’re not a line item on your tax return. But they do affect the cost of goods sold, which in turn affects your taxable income. 

• Accounting Complexity: Keeping clear records of tariff expenses is crucial for accurately predicting tax liabilities and ensuring you don’t miss out on deductions or overstate your expenses.  

Planning Ahead: A Blueprint for SMBs 

1. Map Your Supply Chain 
   Document every supplier, the percentage of inventory each source provides, and where they ship from. This snapshot will help you see where the highest tariff risks lie. 
    

2. Run Multiple Scenarios 
   Build a few “What if?” budgets. For instance: 

• Current Tariff Rates: Your baseline budget. 

• Higher Tariff Rates: If tensions escalate, can you still maintain profitability? 

• Lower Tariff Rates: If negotiations ease, do you allocate that extra margin to growth? 
   

3. Reassess Your Pricing Strategy 
   With higher import costs, you may need to adjust your prices to maintain margins. Communicate any increases transparently to customers—especially if you serve the B2B market. 
    

4. Optimize Tax and Accounting Approaches 

• Track tariff expenses separately to see how they affect your overall financial performance. 

• Consult with tax professionals (that’s us!) to ensure you’re taking advantage of every deduction or tax credit that offsets additional tariff costs. 
   

5. Stay Nimble 
   Tariffs aren’t set in stone. Keeping a close eye on policy shifts allows you to pivot quickly, renegotiate supplier contracts, or even pursue new markets. 
    

How We Can Help 

Wading through policy updates and crunching numbers can be time-consuming—especially when you’ve got a business to run. We’re here to take the guesswork out of tariffs and help you: 

• Plan Better Budgets: We’ll create multiple forecast models so you can be ready no matter how the tariff landscape evolves. 

• Find Supply Chain Savings: Our team can help you weigh the costs and benefits of shifting suppliers, whether that’s moving to other countries or going domestic. 

• Simplify Your Accounting: From categorizing tariff expenses correctly to optimizing your tax strategy, we’ll make sure every penny is accounted for. 

Ready to steer your SMB through uncertain times? Contact us today to schedule a planning session that puts you in control of your financial future. 

The post How the Trump Administration’s Tariffs Are Shaking Up SMBs—and What You Can Do About It  appeared first on Sansiveri, Kimball & Co., LLP.

IRS Layoffs in Mid-Tax Season: Potential Impacts on Tax Filings and Refund Delays  17 Mar 2025, 2:11 pm

In a significant shift impacting the tax landscape, the Internal Revenue Service (IRS) is projected to lay off approximately 6,700 employees right in the middle of tax season. As of the announcement, the IRS had expanded its workforce to roughly 100,000 employees after hiring initiatives initiated by the Biden administration, which aimed to enhance enforcement, particularly against wealthy taxpayers. However, the current downsizing aligns with a broader governmental restructuring initiative led by the “Department of Government Efficiency,” spearheaded by deputies aligned with Elon Musk’s vision for streamlined operations. 

Overview of IRS Personnel Reductions – The layoffs encompass a diverse range of roles within the IRS, including revenue agents, customer service employees, independent specialists handling tax dispute appeals, and IT personnel. This move has sent ripples through Washington, with numerous reports surfacing about potential service disruptions, data security challenges, and a subsequent impact on taxpayer experiences. Especially concerning are those awaiting their tax refunds, as potential delays can affect financial planning for households nationwide. 

IRS’s Strategic Position – Despite these staffing changes, the IRS affirms its commitment to ensuring a successful tax filing season, in adherence to the executive orders while minimizing disruptions. Official communications from the agency suggest that efforts are underway to manage resources efficiently and uphold service standards. However, this is an evolving situation with ongoing litigation and potential policy changes looming, possibly altering the current course of operations. 

Data Security Measures – For those concerned about data security amidst these changes, the IRS maintains stringent protocols to safeguard sensitive taxpayer information. These protocols are applicable to all parties with data access, regardless of their employment status with the IRS, thereby upholding the integrity and confidentiality of taxpayer information. 

Managing Expectations: Refund Processing – Taxpayers concerned about potential delays in refund processing can utilize the “Where’s My Refund?” tool for real-time status updates, typically available 48 hours post e-filing. Refunds from paper or amended returns may take longer to reflect in the system and can extend up to 16 weeks for processing. For amended returns, taxpayers can check the “Where’s My Amended Return?” tool for updates. 

Under ordinary circumstances, refund processing timelines are as follows: 

• E-filed Returns: Up to 21 days 

• Amended or Mailed Returns: 4 weeks or more 

• Returns Requiring Extensive Review: Longer durations 

For those early filers claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) and filing online with refunds via direct deposit, most refunds are expected by March 3, provided there are no discrepancies. Legally, EITC and ACTC refunds cannot be issued before mid-February, and any issues during the processing of returns will prompt IRS communication for additional information. 

To Optimize Refund Speed – Taxpayers should electronically file with automatic refund deposit. 

Extension Options for Tax Filings – Taxpayers needing extra time can request an extension by the April deadline, which gives them until October 15 to file without incurring penalties. However, any taxes owed must be paid by the April deadline. Two main methods are available for securing this extension: 

1. Online Payment with Extension Check Box: 

• Pay amounts due online and select the extension checkbox, negating the need for filing a separate extension form while providing the taxpayer a confirmation number for their records. 

2. Mail-in Extension Request: 

• File Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return) through the mail, online, or via a tax professional. 

• Estimate annual tax liability, subtract taxes already paid for the year and include a payment for the balance. 

3. Business, Trust and Information Return Extensions – There are a variety of forms used to obtain an extension for these type returns. Contact this office for assistance. 

Special Situations 

• For U.S. Citizens Abroad: An automatic two-month extension is available for individuals residing outside the United States as of the standard tax filing deadline. If more time is still needed at the end of the two-month period, Form 4868 can be filed for an additional four-month extension to October 15. 

• Disaster Situations: Additional time may be granted for those impacted by federally recognized disasters. 

As this complex situation unfolds, it remains crucial for taxpayers and businesses alike to stay informed and proactive, ensuring compliance while optimizing financial outcomes amid these systemic changes. Contact our office with any questions.  

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Beneficial Ownership Information (BOI) Update – Reporting Paused 4 Mar 2025, 9:50 pm

The post Beneficial Ownership Information (BOI) Update – Reporting Paused appeared first on Sansiveri, Kimball & Co., LLP.

FinCEN Extends Beneficial Ownership Information Reporting Deadline — What Your Business Needs to Know 28 Feb 2025, 2:45 pm

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