Admittedly, I don’t watch the news much… some days I’m even surprised by the weather. But the other night, I lay awake wondering… what happens if income tax goes away and everything moves to tariffs? Will businesses even need me and other bookkeepers anymore?

So after I spiraled for a bit, I turned on a sleep meditation podcast and decided I would tackle this in the morning.

Turns out, businesses will still need us bookkeepers and accountants. So let’s dive in to this two-parter, starting with the Fair Tax Act (we’ll get to tariffs on the next blog):

What the Fair Tax Act Means for Small Businesses (and Why Bookkeeping Still Matters)

There’s been a lot of buzz about the Fair Tax Act of 2025, which proposes eliminating income taxes, payroll taxes, and even the IRS—replacing them with a national sales tax instead. If passed, this would mean a huge shift in how businesses handle taxes and finances. But before you get too excited (or worried), let’s break it down:

What Is the Fair Tax...

A few days ago, I had a conversation with a local marketing freelancer that illuminated the fact that many people are missing out on deductions/write-offs they can take. So figured it was time for a blog on this one!

via GIPHY

First off…

What’s a Write Off?

A write-off is an expense that a business can deduct from its taxable income, reducing the overall tax burden. This isn’t a dollar-for dollar reduction in taxes (that’s a credit). But it does reduce the your business’s income.

How do you get to that number?

Revenue (Total Sales)

(Less: Expenses → aka write-offs)*

= Taxable Income

Ordinary & Necessary

*These expenses must be ordinary and necessary for the business to qualify under IRS rules. What does that mean?

Is it ordinary for your industry?

Is it necessary to run your business?

Of course… there’s always grey areas, so that’s when it become quite important for you to document your stances. This is where keeping receipts comes in real handy.

For online business...

Can You Deduct Clothing as a Business Expense? Here’s What the IRS Says!

If you’ve ever wondered whether you can write off that sleek new ‘fit or branded business attire for a photo shoot, you’re not alone. As entrepreneurs and professionals, we invest in looking the part—but does the IRS see it as a deductible business expense? Let’s break it down.

IRS Rules on Deducting Work Clothing

The IRS has a simple test when it comes to clothing deductions:

✅ Required for your job – The clothing must be specifically mandated for your work or business.

✅ Not suitable for everyday wear – Even if you only wear it for work, if it could be worn outside of work, the IRS won’t allow the deduction. This even means things you normally would not wear outside of work/that branding photo shoot.

Under IRC §162(a), business expenses must be ordinary and necessary to be deductible. Treasury Regulation §1.162-5 further clarifies that clothing is only deductible if it meets both of the above criteria.

Hey there! I’m Katy Murray, an entrepreneur and Human Resources professional, and I’m incredibly passionate about both. I absolutely love how much these two areas overlap, and I’m always finding ways to pull tricks from one and apply them to the other. Whether you’re a one-person operation or managing a small team, I can’t stress enough how crucial it is to document your HR processes for long-term success.

When most people think of Human Resources (HR), they picture big companies with hundreds of employees and complex departments. But honestly, HR is just as vital for us small business owners. Whether you have one employee or ten, documenting your HR processes is key to staying compliant, protecting your business, and creating a healthy work culture. I’m excited to share some practical tips and easy steps to help you start documenting like a pro, no matter the size of your business!

Disclaimer: The information provided in this blog post is for general informational purposes only an...

Last month I had the pleasure of being a guest on The Money Diaries Podcast hosted by Nicole Ayub. If you’re interested in going deeper on your personal finances and learning more about investing, I hight recommend her podcast!

The Money Diaries is your friendly source of wisdom and insights about personal finance, entrepreneurship, and everything in between!

Exploring Emotional Relationships with Money

Nicole kicks off the episode by emphasizing the importance of addressing our emotional relationships with money. At The Money Diaries, the goal is to have candid conversations about our financial fears, shame, habits, and behaviors. The aim?

To heal and build a more beautiful, healthy relationship with our finances.

Serena's Journey from Corporate to Entrepreneurship

Serena shares her inspiring journey from a corporate controller to a successful entrepreneur. She left her corporate job to stay home with her second daughter and ended up turning her freelance bookkeeping gig into ...

5 Key Considerations for Online Business Owners Hiring Out-of-State Employees

So many of my clients have cast a wide net in their hiring because we can as online business, doing everything online. However, something that often gets overlooked is the compliance & complexity when it comes to hiring someone in a different state than where you are based/registered.

So I figured it was time to add this to the blog. Here are some things you want to consider and figure out before deciding to send that job offer once you’ve narrowed down your candidates.

1. Understand Employment Laws: Each state has its own employment laws, including minimum wage, overtime, and employee classification rules. Familiarize yourself with these to avoid legal pitfalls. Check out the blog post we did here about employee classification. Some states are more strict than others.

2. Register Your Business: You may need to register your business in the state where your new employee or contractor resides. This often i...

Can your small business afford to miss out on the financial tools that could save you time and money? Join us for an insightful conversation where I break down my top recommendations for small business finance management. I take you through the benefits of using Relay, an online banking platform that supports the Profit First methodology, and show how it seamlessly integrates with popular accounting software like QuickBooks and Xero. Learn why separating your business and personal finances is crucial and how Relay's features can simplify team spending management, providing practical solutions for every small business owner.

Xero or QBO?

Ever wondered which accounting software offers the best control mechanisms? In this episode, we explore the critical importance of audit trails and user access controls by comparing Xero and QuickBooks Online. I share how Xero’s inability to delete transactions enhances security and oversight, making it a preferred choice for security-conscious busine...

A couple of moths ago, you may have heard of a Facebook ads scam. I was actually traveling when this was going on, but happened to be working on onboarding a new client who’d sent me an email about the recent Facebook charge frauds and wanting to know how best to guard against them. They hadn’t been hit, but then I realized, while I was traveling, I kept seeing my little American Express alerts for charges, since I have my business card linked to my apple pay, I see every transaction that hits pop up on my phone. They were little transactions to Facebook, for under $20 but they were happening every few hours.

Then it hit me: My Facebook billing threshold is $500, so why are all these tiny charges hitting—AND, I didn’t think we were running any ads.

I was so grateful that my client had asked the question, and I was suddenly aware of what was going on. So in today’s blog, I’m going to share with you what I did, and what you can do, too.

Awareness & Fraud Training is KEY

I am SO glad ...

Navigating the Maze of Meal Deductibility in the USA

In the complex world of tax deductions, meal expenses in the United States can be a particularly intricate subject. The rules governing the deductibility of meals vary depending on the purpose, context, and amount spent. Understanding these nuances can help taxpayers make informed financial decisions and potentially reduce their tax liability. In this blog post, we'll explore the different deductibility of meals in the USA.

1. Business Meals Deduction

One of the most common deductions related to meals is for business purposes which are qualifying meal expenses incurred while conducting business. During the pandemic, they were eligible for a 100% deduction but now business meals that meet this criteria, like discussing business-related matters, are still back down to a 50% deduction.

2. Entertainment Expenses

Back in the day, entertainment used to be deductible. Not anymore! It’s very important to separate meal costs from ente...

In our world of online education, where knowledge is transformed into lucrative opportunities, entrepreneurs are capitalizing on the e-learning boom like never before.

Running an online course business can be super rewarding, but it also comes with its fair share of challenges. One of the key elements that can make or break your venture is the use of contracts. In this blog post, we'll explore the importance of contracts in your online course business and why they are crucial for your success. We’ll also be linking to our favorite resources for affordable contracts.

1. Clarity and Expectations: Contracts serve as a formal agreement between you and your students. They outline the terms and conditions of the course, payment terms, refund policies, and more. Having these details in writing ensures that both parties are on the same page from the outset. It helps to manage expectations and prevent misunderstandings down the line.
2. Legal Protection: Running an online course business invo
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