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.

The Dirty Secrets of the S-Corp Election

More & more, I see tax pro’s marketing the S-Corp election for massive tax savings but just like anything else, it’s important to do your homework before letting someone convince you that their way is the right way. It’s not a one-size fits all, and in this article I’m going to share some of the drawbacks (dirty secrets) about S-Corps plus what you can expect to pay for various services associated with electing S-Corp status.

First, though,

What’s an S-Corporation vs S-Corp Election?

An S-Corporation, or S-Corp, is a selected business structure, that one would choose at the time of forming their company. Choosing this structure allows pass-through taxation, meaning that profits and losses pass through to shareholders' personal tax returns, avoiding double taxation (i.e. the business being taxed AND you personally being taxed the income you pay yourself from the business).

On the other hand, the S-Corp election refers to the process of choos...