Month: January 2026

Preface: “The goal is to turn data into information, and information into insight.” — Carly Fiorina

What a Great CPA Can Do for a Business

(It’s More Than Taxes)

Most business owners don’t lie awake at night worrying about depreciation schedules or tax forms. They worry about cash flow. They worry about making the wrong decision. They worry about working harder every year without seeing the payoff.

That’s why a great CPA can make such a meaningful difference—not just at tax time, but year-round.

A truly great CPA does far more than prepare returns or keep the books clean. They help business owners understand their numbers, plan with confidence, and make better decisions. In short, they help turn uncertainty into clarity.

A CPA’s Role Has Changed—and That’s a Good Thing

Traditionally, CPAs were viewed primarily as compliance professionals. Their job was to make sure taxes were filed correctly and financial statements were accurate. While that foundation is still critical, it’s no longer enough.

Today’s business environment is more complex, faster-moving, and more demanding. Business owners don’t just need someone to report what happened last year—they need help navigating what comes next.

A great CPA understands this shift. They move beyond compliance and into partnership.

A Great CPA Brings Clarity to the Numbers

Many business owners are busy, capable, and successful—yet still feel unsure about their financial picture. They may review reports each month without fully trusting what they’re seeing or knowing how to use the information.

A great CPA translates the numbers into plain language. They help answer questions like:

• • Am I actually making money?
  • Where is my cash going?
  • Which parts of my business are most profitable?
  • What should I be paying attention to—and what can I ignore?

When the numbers are clear, decisions become easier. Confidence replaces guesswork.

A Great CPA Eliminates Tax Surprises

One of the most common frustrations business owners have is being surprised by taxes. A large, unexpected tax bill can feel like a failure—even when the business is doing well.

A great CPA plans ahead. They don’t wait until filing season to talk about taxes. Instead, they help business owners:

• • Understand their tax exposure throughout the year
  • Make estimated payments intentionally
  • Take advantage of planning opportunities before year-end
  • Align business decisions with tax strategy

The goal isn’t just to reduce taxes—it’s to remove uncertainty and stress.

A Great CPA Improves Cash Flow and Decision-Making

Profitability and cash flow are not the same thing, and many businesses learn this the hard way. It’s possible to show a profit on paper and still feel constantly short on cash.

A great CPA helps uncover why. They look beyond the income statement to identify timing issues, working capital challenges, and operational inefficiencies. More importantly, they help business owners use this insight to make better decisions—about hiring, spending, pricing, and growth.

Good decisions require good information. A great CPA helps ensure both.

A Great CPA Supports Smart, Sustainable Growth

Growth is exciting—but it can also be risky. Hiring too soon, expanding too quickly, or investing without a clear financial plan can strain even healthy businesses.

A great CPA acts as a strategic sounding board. They help business owners evaluate questions like:

• • Can we afford to hire right now?
  • What happens to cash flow if revenue dips?
  • Is this growth profitable—or just bigger?
  • Are we structured the right way for where we’re headed?

This kind of guidance helps businesses grow with intention, not anxiety.

A Great CPA Reduces Stress and Mental Load

Running a business comes with enough pressure. Constantly worrying about finances shouldn’t be part of the burden.

When a CPA relationship works well, business owners don’t feel alone with their numbers. They know someone is watching the details, thinking ahead, and raising concerns early.

That peace of mind is hard to quantify—but incredibly valuable.

The Difference Between a Good CPA and a Great CPA

A good CPA:

• • Files accurate tax returns
  • Keeps clean financial records
  • Ensures compliance

A great CPA:

• • Helps you understand your business
  • Helps you plan for the future
  • Helps you make better decisions
  • Helps you sleep better at night

The difference isn’t technical skill—it’s perspective, communication, and partnership.

The Bottom Line

A great CPA doesn’t just look backward at what already happened. They look forward with you.

They help you move from reacting to planning, from guessing to knowing, and from stress to confidence. In a world where business owners are asked to juggle more than ever, that kind of partnership isn’t a luxury—it’s a competitive advantage.

If your CPA relationship gives you clarity, confidence, and fewer surprises, you’re on the right track. If not, it may be worth asking whether you’re getting everything a great CPA can offer.

Preface: “Deciding what not to do is as important as deciding what to do,”
― Cal Newport, Slow Productivity: The Lost Art of Accomplishment Without Burnout

Book Report: Slow Productivity by Cal Newport

In Slow Productivity: The Lost Art of Accomplishment Without Burnout, Cal Newport argues that modern ideas about productivity are unhealthy and ineffective. Today, productivity is often defined as doing more work faster and always staying busy. Newport believes this way of thinking comes from factory-style work and does not fit jobs that require thinking, creativity, or problem-solving. Instead of leading to success, this approach often causes burnout, stress, and lower-quality work. Newport introduces the idea of slow productivity, which focuses on working in a sustainable way, producing high-quality results, and achieving long-term success.

Newport explains the difference between factory work and knowledge work. In factory jobs, productivity is easy to measure because it depends on how much is produced in a certain amount of time. Knowledge work is different because tasks vary, progress is harder to see, and results often take a long time to develop. Because it is difficult to measure real progress, many workplaces judge productivity by visible actions such as sending emails, attending meetings, or working long hours. Newport calls this pseudo-productivity, meaning people appear busy without necessarily creating meaningful or valuable results.

Technology has made this problem worse. Email, messaging apps, and smartphones allow people to talk about work constantly, even when little real progress is being made. Many workers check their messages frequently, which breaks concentration and increases stress. The expectation to always be available leads to overload and burnout while quietly lowering the quality of work.

To offer a better approach, Newport looks to the slow movement, which encourages quality, balance, and well-being instead of speed. Applying these ideas to work, Newport defines slow productivity as a way of organizing work that is meaningful, sustainable, and capable of producing excellent results over time.

Slow productivity is based on three main principles. The first principle is Do Fewer Things. Newport explains that people often feel overwhelmed because they take on too many projects at once. Each project comes with extra tasks like meetings, emails, and planning, which take up time and mental energy. By focusing on fewer important projects, people reduce distractions and can concentrate more deeply, leading to better results and higher-quality work.

The second principle is Work at a Natural Pace. Newport challenges the idea that people should work at full speed all the time. He explains that work has traditionally happened in cycles, with busy periods followed by rest. Modern knowledge work often lacks these natural limits, causing work to spill into personal time. Newport encourages people to plan for the long term, slow down important projects, and allow for breaks. Working at a natural pace helps prevent burnout and supports thoughtful, meaningful work.

The third principle is Obsess Over Quality. Newport believes that quality matters more than quantity. In most jobs, only a few tasks truly create value, so people should focus on doing those tasks as well as possible. Producing excellent work requires focus, time, and simplicity. By consistently delivering high-quality work, people earn trust and gain more control over their schedules, which leads to long-term success without burnout.

In conclusion, Slow Productivity encourages readers to rethink what it truly means to be productive. Rather than measuring success by how busy someone appears, Cal Newport argues that real accomplishment comes from focusing on meaningful work, allowing time for deep thinking, and prioritizing quality over quantity. His three principles—doing fewer things, working at a natural pace, and obsessing over quality—offer a practical and healthier approach to work. Overall, Newport’s message shows that slowing down is not a weakness, but a powerful way to achieve better results, avoid burnout, and find greater satisfaction in both work and life.

Preface: “By failing to prepare, you are preparing to fail.” — Benjamin Franklin

Tax Highlights to Help You Prepare for 2025 Tax Filing 

The One Big Beautiful Bill Act of 2025 (OBBBA) ushers in a new tax environment whose full effects will take several years to unfold and will likely require further clarification. Please join us now as we review some of the updated numbers for 2025 and some of the structural changes introduced by this sweeping legislation.  

Standard Deduction 

The standard deduction has increased for 2025 as follows: 

• • Joint filers – $31,500 
  • Individual taxpayers – $15,750 
  • Heads of household – $23,625 

An additional amount of $1,600 is added to the standard deduction of a taxpayer who is age 65 or older or who is blind. The additional amount is $2,000 if the taxpayer is unmarried and not a surviving spouse. If you are age 65 or older and blind, you get to take the additional amount twice. 

Income Tax brackets 

Income tax brackets for 2025 are as follows: 

Single	Married Filing Jointly	Rate
$0 – $11,925	$0 – $23,850	10%
$11,926 – $48,475	$23,851 – $96,950	12%
$48,476 – $103,350	$96,951 – $206,700	22%
$103,351 – $197,300	$206,701 – $394,600	24%
$197,301 – $250,525	$394,601 – $501,050	32%
$250,526 – $626,350	$501,051 – $751,600	35%
$626,351 and up	$751,601 and up	37%

Note that these brackets apply to taxable income after all deductions have been taken. The rates apply in a graduated manner, up to each threshold at the applicable rate, and from that threshold at the next applicable rate, etc. 

Changes to Itemized Deductions 

SALT

The biggest single change to itemized deductions is that the cap on the state and local tax (SALT) deduction has been increased to $40,000. This increase will expire after 2028, and absent additional legislation, the cap will then revert to $10,000. 

Another new wrinkle in the SALT deduction is that the increased cap has a phaseout threshold for high earners. For both single filers and married filing jointly, the phaseout begins at modified AGI of $500,000. The cap phases down from $40,000. At modified AGI of $600,000 or more, the cap is again $10,000. 

Mortgage Interest 

OBBBA reintroduces the deductibility of mortgage insurance premiums, which had been disallowed in recent years. The indebtedness limit of $750,000 for mortgage interest deductions remains unchanged. 

OBBBA makes no changes to deductibility of medical expenses. These are still limited to the amount that exceeds 7.5% of AGI. 

The itemized deduction for personal casualty loss has been broadened to include casualty loss due to state as well as federally-declared disasters. 

Other miscellaneous itemized deductions are now permanently eliminated. 

Changes Coming to Charitable Contribution Deductions in 2026 

Starting in 2026, there will be a lower-bound or “floor” on charitable deductions equal to 0.5% of AGI. The itemized charitable deduction will be reduced by this amount. 

Also starting in 2026, a new non-itemized charitable deduction will be available as a below-the-line deduction. Unlike the four other new below-the-line deductions introduced in the OBBBA, the charitable deduction will be permanent. It will not expire after 2028. 

The non-itemized deduction will be capped at $1,000 for single filers and at $2,000 for joint filers. It is obviously intended for non-itemizers. Unlike the itemized version, the non-itemized version will be restricted to donations by cash or check. It will not be subject to the new 0.5% “floor”. 

 

The Four “No Tax On…” Below-the-Line Deductions 

Under OBBBA, you are still required to report tips, overtime pay, and social security as taxable income. However, there are three new deductions that may reduce or eliminate the taxable amount. There is also a new deduction for car loan interest. All four deductions are subject to dollar amount caps, income-based phaseouts, and additional restrictions. All four will expire after 2028. 

1. Tips

The deduction for tips is capped at $25,000 regardless of filing status. It begins to phase out at $150,000 of modified AGI for single filers and at $300,000 for married filing jointly. 

The IRS has published a list of “tipped occupation codes” they consider valid for purposes of this deduction: https://shorturl.at/k1Gi2. The list does not include artists, musicians, entertainers, or accountants, or any other specified service trades or businesses (SSTBs). 

Sole proprietors may not deduct more in tips than their net income from the business through which the tips were earned. 

 2. OT Pay

The deduction for overtime pay is capped at $25,000 for joint filers, regardless of which spouse had the overtime pay. It is capped at $12,500 for single filers. It begins to phase out at $150,000 of modified AGI for single filers and at $300,000 for married filing jointly. 

This deduction is taken on the “and a half” portion of “time and a half” pay. In other words, if you had $1,500 in overtime pay for work that would have earned you $1,000 during non-overtime hours, then you would deduct the extra $500. The amount of overtime an employee can deduct should be reported by the employer. 

3. Seniors

The deduction for social security is not in any way capped by the amount of social security benefits the taxpayer actually received during the year. It is available to all filers age 65 and older and has a maximum value of $6,000 per person. It begins to phase out at $75,000 of modified AGI for single filers and at $150,000 for married filing jointly. 

Note that this deduction is taken in addition to the increased standard deduction for taxpayers aged 65 and older. 

4. Car Loan Interest

There is also a new deduction on car loan interest. It is capped at $10,000. It begins to phase out at $100,000 of modified AGI for single filers and at $200,000 for married filing jointly. 

This deduction applies only to car loans taken out after December 31, 2024. The vehicle must be new, assembled in the U.S., and cannot have a GVW of more than 14,000 lbs. The deduction cannot be taken for vehicles used for business or bought for resale. 

All four of these deductions are below-the-line deductions, meaning they are taken after AGI is computed. All four will expire after 2028 if not extended by Congress. 

Changes to the Qualified Business Income Deduction 

The Tax Cuts and Jobs Act of 2017 (TCJA) cut corporate income tax to 21%. In order to compensate unincorporated businesses, TCJA introduced the qualified business income deduction (QBID). The QBID is a below-the-line deduction worth a maximum of 20% of business income, subject to certain restrictions. 

While the corporate tax rate cut was permanent in TCJA, the QBID was set to expire in 2025. The OBBBA now makes the QBID permanent as well. 

The general structure of the QBID remains as before. For 2025, the phaseout thresholds for higher earners begin at $197,300 for single filers and $394,600 for joint filers. Above these thresholds, the amount of QBID begins to phase out for specified service trades or businesses (SSTBs). For non-SSTBs, the amount of QBID begins to be limited by wage and property requirements. 

The upper threshold for the phaseout is $272,300 of taxable income for single filers and $544,600 for joint filers. Above these thresholds, SSTBs can no longer take any QBID. Non-SSTBs must fully meet wage expense and property investment requirements to continue taking the full 20% deduction. 

As before, QBID for all earners is limited to the taxpayer’s taxable income minus net capital gains. 

One change that OBBBA introduces to QBID is a $400 guaranteed minimum deduction to any taxpayer who has at least $1,000 in qualified business income so long as the business income is “active”. The definition of “active” for this purpose should follow “material participation” as defined for distinguishing passive from non-passive business activity. This guaranteed minimum amount applies if the aggregate of all your active qualified business income is at least $1,000. 

Capital Gain Tax Rates 

Tax on long-term capital gains and qualified dividends for 2025 is as follows: 

Single	Married Filing Jointly	Rate
$0 – $48,350	$0 – $96,700	0%
$48,351 – $533,400	$96,701 – $600,050	15%
$533,401 or more	$600,051 or more	20%

Note that these rates apply in a graduated manner to all your taxable income. So, for instance, if you are single and have $40,000 of taxable income before considering capital gains and qualified dividends, then only the first $8,350 of your long-term capital gains qualify for the zero rate. 

Net Investment Income Tax 

In accordance with the Affordable Care Act of 2010, the 3.8% net investment income tax (NIIT) continues to apply to income from capital gains, dividends, interest income, royalty , and rental income. The amount of income subject to NIIT is the lesser of: 

• • Total investment income as defined above or 
  • Modified AGI in excess of $200,000 for single filers and $250,000 for joint filers. 

The NIIT is then added to your total tax.  

Dependent Credits 

The child tax credit has been increased to $2,200 for each qualifying child who was under the age of 17 at the end of 2025. The refundable portion of the credit remains at $1,700. 

The credit for other dependents remains $500 for each qualifying child who was 17 or 18 years old the end of 2025 or was a student not yet of age 24 at the end of that year, or was of any age but permanently and totally disabled. None of the credit for other dependents is refundable. 

This $500 credit is also available for qualifying relatives whose gross income was less than $5,250 in 2025. Note that a qualifying child can earn more than this and still be claimed as a dependent. 

Both the child tax credit and the credit for other dependents begin to phase out for taxpayers whose AGI is greater than $200,000 ($400,000 for married filing jointly).  

Adoption Credit 

For 2025, the adoption credit is available for up to $17,280 of qualified expenses. For a special-needs adoption, the maximum credit may be taken even if the actual costs were less. The credit begins to phase out for taxpayers with modified AGI above $259,190 and is completely phased out at $299,190. 

Under OBBBA, $5,000 of this credit is now refundable.  

Gift and Estate Taxes 

The annual gift tax exclusion for 2025 has increased to $19,000 per taxpayer. So, an individual can give up to $19,000 ($38,000 with spouse) to each child, grandchild or any other taxpayer in 2025 without being required to file a gift tax return. 

The lifetime estate and gift tax exemption for 2025 has increased to $15 million per individual.  

Mileage Rates 

The 2025 mileage rate for business purposes has increased to 70¢ per mile. 

The rate for miles driven in service of charitable organizations remains unchanged at 14¢ per mile. The rate for military moving expenses and for medical transportation is 21¢ per mile.  

Energy Credits 

One of the major effects of the OBBBA is to rapidly phase out many generous energy credits provided by the Inflation Reduction Act of 2022. These credits were originally supposed to be available until the 2030s, but most will now expire much sooner. 

The clean vehicle credit can still be claimed for 2025, but only for qualifying vehicles purchased by the end of September 2025. 

The energy efficient home improvement credit and residential clean energy credit are available through the end of 2025. In the past, unused portions of these credits could be carried forward to future years. It is not yet clear if this will still be possible for portions that re0main unused after 2025. 

For a business to claim business credit for wind or solar property, the property must either begin construction before July 5, 2026, or be placed in service by December 31, 2027. Business credit for energy storage, hydropower, and geothermal will not phase out until 2033. 

OBBBA also restricts these business credits if they are generated by either a “specified foreign entity” or a “foreign influenced entity.” 

Research and Experimental Expenses 

Under OBBBA, 100% of domestic research and experimental costs may now be expensed. Unamortized R&E expenditures remaining from tax years 2022-2024 may be amortized in 2025 or ratably over 2025 and 2026. 

Foreign R&E expenditures must still be amortized over 15 years. 

Depreciable Property 

Under OBBBA, bonus depreciation is permanently restored to 100%. 

The maximum Section 179 deduction is increased to $2.5 million and begins to phase out at $4 million of eligible property placed in service in 2025. 

Most amazingly of all, OBBBA now allows 100% expensing of some real property. There are, of course, a number of requirements and restrictions. Most importantly, the property must be used for production, manufacturing, or refining activities. The activity must be performed by the owner, so lessors are not eligible. This provision is set to expire after 2028.  

Digital Assets 

All taxpayers must state on Form 1040 whether they received, sold, or otherwise exchanged any digital assets during the year. This includes cryptocurrency, stablecoin, non-fungible tokens, and other digital assets. This question is informational and is independent from the requirement to report gains or losses from actual sales. Digital assets are taxed much the same as stocks and other capital assets. 

The IRS has now finalized Form 1099-DA to report sales and exchanges of digital assets. For 2025, brokers are required to report gross proceeds of digital asset transactions. Starting in 2026, they will be required to report the basis for covered securities.  

Forms 1099 

Under OBBBA, the threshold for filing Form 1099-K (payment card and third-party network transactions) is restored to $20,000 and 200 transactions, effective 2025. 

The threshold for filing Forms 1099-NEC and 1099-MISC will be increased to $2,000, but only in 2026. 

Year-End & New-Year Financial Planning Series

As the year draws to a close and a new one begins, we believe thoughtful financial planning is an important part of faithful stewardship. Each post in this series builds on the last — helping you reflect on the year behind you, plan wisely for the year ahead, and establish steady habits that support clarity, peace of mind, and long-term sustainability. New entries will be released weekly as we move together from closing the year well to starting the next one with intention and confidence.

Preface: “Whoever is faithful in very little is also faithful in much.” — Luke 16:10

Part 3: A Clean Start — Financial Habits That Set the Tone for the Year

The first days of the new year often bring a quieter pause — a moment between reflection and routine. It’s a natural time to think about habits, especially those that support clarity and stability over the long term.

Rather than focusing on dramatic changes, the most effective financial habits are often simple, consistent, and sustainable.

1. Review Financial Information Regularly

You don’t need to analyze every detail to benefit from regular review. Even a brief monthly check-in with your numbers can help you stay informed and confident.

Regular review allows you to:

• • identify trends early
  • ask better questions
  • avoid surprises at year-end

2. Maintain Open Communication

Ongoing communication with your CPA or advisor leads to better planning than last-minute conversations. Sharing changes as they occur helps ensure advice is timely and relevant.

Small updates throughout the year can prevent larger issues later.

3. Keep Records Current

Staying current with bookkeeping is one of the most effective ways to reduce stress. Clean records make financial reports more meaningful and tax preparation more efficient.

Consistency throughout the year saves time for everyone involved.

4. Build Margin Into Decisions

Healthy financial management includes room for the unexpected. Conservative assumptions and thoughtful pacing often support long-term stability better than aggressive projections.

Margin creates flexibility — and flexibility creates resilience.

5. Focus on Faithful Stewardship

Strong financial habits are not just about results; they’re about process. Stewardship involves consistency, transparency, and wise decision-making over time.

A clean start isn’t about starting over — it’s about starting well and continuing faithfully.

6. We’re Here When You’re Ready

If you’d like support establishing financial systems and habits that serve you well throughout the year, we welcome the opportunity to help. Thoughtful planning and consistent communication can make a meaningful difference over time.

In Part 1 of this series, we focused on closing the year with clarity. In Part 2, we turned that reflection into intentional planning for the year ahead. This final post brings those ideas together by emphasizing the steady financial habits that help sustain clarity, stability, and faithful stewardship throughout the year.