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The Internal Revenue Service Washington D.C. headquarters Whether you view it as welcome tax relief or another administrative update, the Internal Revenue Service has increased the optional standard mileage rate for the second half of 2026. The change affects self-employed individuals and business owners who use the standard mileage method to calculate vehicle expenses. It may also affect employers that use the IRS rate to reimburse employees who drive their personal vehicles for business. What Changed with the Standard Mileage Rate? In Announcement 2026-11, the IRS increased the optional standard mileage rates for business, medical, and qualifying moving travel beginning July 1, 2026. The applicable rates for 2026 are: Type of mileage January 1–June 30 July 1–December 31 Business 72.5 cents per mile 76 cents per mile Medical and qualifying moving 20.5 cents per mile 23.5 cents per mile Charitable 14 cents per mile 14 cents per mile The charitable mileage rate remains unchanged because it is set by federal law rather than adjusted administratively by the IRS. According to the IRS, the midyear adjustment was made in response to recent increases in fuel prices. Although midyear changes are unusual, this is not the first time the IRS has made one. A similar adjustment took effect on July 1, 2022, following another period of rising fuel costs. Who Is Affected? This change may affect you if you are: A self-employed individual who deducts business mileage; A small business owner who uses a personal vehicle for business; An employer who reimburses employees for business use of their personal vehicles; or An employee responsible for submitting business mileage to an employer. The higher rate is not retroactive to January 1. Business mileage from January 1 through June 30, 2026, remains subject to the 72.5-cent rate. Business mileage on or after July 1 qualifies for the new 76-cent rate. For example, 1,000 qualifying business miles driven after July 1 would produce a $760 deduction or reimbursement using the new rate, compared with $725 under the original rate. Do You Need Two Mileage Logs? You do not necessarily need to create an entirely separate mileage log. However, your records must clearly identify the date of each trip so that mileage can be divided between the two periods. A complete mileage log should generally include: The date of the trip; The starting point and destination; The business purpose of the trip; and The number of business miles driven. Mileage records should be maintained at or near the time the travel occurs. Waiting until tax season to reconstruct an entire year of travel can lead to missing information, inaccurate deductions, and difficulty supporting the expense if the IRS requests documentation. Business owners should make sure their mileage-tracking applications, spreadsheets, bookkeeping systems, and year-end tax records apply the correct rate based on the date of travel. What Should Employers Do? Employers that use the IRS standard mileage rate as their reimbursement benchmark should review their reimbursement policies and update their systems for qualifying travel occurring on or after July 1. The date of the underlying travel matters. For example, mileage driven in June does not qualify for the new rate merely because the employee submits the reimbursement request or receives payment in July. The revised rate generally applies when both the travel occurred on or after July 1 and the mileage allowance was paid on or after that date. Employers should also communicate the change to employees, managers, payroll personnel, and anyone responsible for approving expense reports. The IRS rate is optional. Federal law does not generally require every employer to reimburse employees at the IRS rate or to reimburse mileage at all. However, an employment agreement, company policy, or applicable state law may impose separate reimbursement requirements. Employers should review those requirements before changing their policies. What Should Self-Employed Individuals Do? Self-employed individuals using the standard mileage method should continue tracking all qualifying business travel and make sure their records separate mileage into the following periods: January 1 through June 30, 2026; and July 1 through December 31, 2026. The standard mileage method is optional. Depending on the vehicle and how it is used, a taxpayer may instead qualify to deduct the business portion of actual vehicle expenses, such as fuel, repairs, insurance, registration costs, lease payments, or depreciation. Eligibility to switch between methods can depend on how the vehicle was treated when it was first placed in service, so taxpayers should consult their tax professional before making a change. The Bottom Line The midyear rate increase may provide a modest benefit to business owners and self-employed individuals who spend significant time on the road. However, receiving that benefit depends on maintaining accurate records and applying the correct rate to each trip. Employers should update their reimbursement procedures, while self-employed individuals should confirm that their mileage logs clearly distinguish travel before and after July 1. A few minutes spent reviewing your records now can prevent confusion, and potentially missed deductions, when it is time to prepare your 2026 tax return. If you have questions about business vehicle expenses, employee mileage reimbursements, or whether the standard mileage method is appropriate for your situation, contact Pathfinder Accounting & Tax. We can help you understand the rules and make sure your business records are prepared for tax season. This article is intended for general informational purposes and does not constitute individualized tax or legal advice.

Small business owner diligently reviews financial records and invoices, ensuring successful financial management with advanced digital tools. Small business owners often feel like they are operating at the speed of light. There are customers to serve, employees to manage, vendors to pay, sales to close, and decisions to make every hour of the day. When things are moving that fast, the back office is usually the first place where shortcuts happen. A receipt gets lost. A vendor invoice sits in someone’s inbox. A contractor gets paid before a W-9 is collected. A credit card transaction hits the bank feed with no memo, no business purpose, and no backup. In the moment, none of these things feel like a crisis. But over time, they add up. Incomplete accounts payable records can create tax-time headaches, slow down month-end close, increase the cost of bookkeeping, and make life harder if your business ever goes through a financial statement audit, IRS or state tax audit, loan review, acquisition, or investor due diligence. The good news is that this is fixable. You do not need a large finance department to build a clean accounts payable process. You just need a repeatable system, the right tools, and the discipline to stick with the process. Accounts payable is more than paying bills Many business owners think of accounts payable as simply “paying vendors.” That is part of it, but it is not the whole picture. A strong accounts payable process answers five basic questions: Who did we pay? What did we pay for? Was the expense approved? Do we have the invoice, receipt, or supporting documentation? Did it get recorded correctly in the accounting system? When the answer to any of those questions is unclear, your business loses visibility. That $312 charge on the company card may have been a legitimate software subscription, a client meal, a duplicate charge, or a personal expense. Without the receipt and memo, someone has to stop later and figure it out. Usually, that person is the owner, bookkeeper, accountant, or tax preparer, which likely is months after the transaction happened. That is where the real cost shows up. It is not just the missing receipt. It is the time spent chasing it, explaining it, correcting it, and wondering whether the financial statements are complete. Why documentation matters For small businesses, missing receipts and vendor documents may not seem like a big deal. In the early days, the owner may know every vendor, every subscription, and every purchase by memory. That changes as the business grows. You add employees. You issue company cards. You use more software. You pay more contractors. You buy supplies from more vendors. You travel more. The number of transactions increases, but the owner’s memory does not scale with it. The IRS expects businesses to maintain adequate records that support expenses, including documentation such as receipts, bills, canceled checks, and other evidence that shows the amount, date, place, and essential character of the expense. For travel, gift, and car-related expenses, IRS Publication 463 specifically discusses documentary evidence and notes exceptions, including expenses under $75 other than lodging. The same publication also makes an important point: a canceled check by itself does not prove business purpose. That is why a “we can figure it out later” approach is risky. At tax time, missing documentation can delay return preparation or require follow-up. During an audit, missing support can increase professional fees and create unnecessary stress. During financial statement preparation, incomplete backup can slow down reconciliations and make it harder to know whether expenses are recorded in the right period and category. The cleaner your accounts payable process is today, the less expensive it is to clean up later. The W-9 and 1099 problem Vendor records are another area where small businesses often wait too long. A common situation looks like this: you hire a contractor, pay them a few times, and only think about the W-9 in January when it is time to prepare 1099s. By then, the vendor may be slow to respond, the email may be outdated, or the payment details may be scattered across your bank account, accounting system, and inbox. A better process is to collect vendor information before the first payment goes out. That means your accounts payable workflow should include: Vendor name and contact information W-9 or tax information when applicable Payment method ACH, check, wire, or card details 1099 tracking status Approval history Invoice and payment history For tax years beginning after 2025, the IRS increased the minimum threshold for certain information returns and backup withholding from $600 to $2,000, with inflation adjustments beginning in calendar year 2027. That said, 1099 rules can vary depending on the type of payment, entity type, payment method, and state requirements. Payments made through payment cards and certain third-party networks are generally reported by payment settlement entities on Form 1099-K. The takeaway for business owners is simple: do not wait until January to find out whether you have the information you need. A good accounts payable system should help you collect vendor information up front, track reportable payments throughout the year, and reduce the year-end scramble. What a good small business AP process looks like A scalable accounts payable process does not have to be complicated. In fact, the best systems are usually simple enough that the whole team can follow them. Here is a practical structure for a small business: 1. Create one place for invoices Invoices should not be scattered across five inboxes, text messages, and paper mail. Create one central place where vendor invoices go. That may be a dedicated email address, an AP inbox inside your software, or an invoice-forwarding workflow. The rule should be clear: if a vendor invoice is not in the system, it does not get paid. 2. Collect vendor information before payment Before paying a new vendor, collect the information needed to pay and report them properly. This includes payment instructions and tax documentation when applicable. Modern AP tools can request this information electronically so the business owner is not manually emailing PDFs back and forth. 3. Require approval before money leaves the business Even a very small business should have some type of approval process. For a solo owner, that may be one final review before payment. For a larger team, it may mean department approval, manager approval, and owner or controller approval above certain dollar thresholds. Approvals protect cash flow and reduce surprises. 4. Capture receipts and memos as close to the transaction as possible The best time to document a purchase is right after it happens. If an employee buys supplies, pays for parking, books travel, or swipes a company card for a client lunch, the system should immediately request the receipt and business purpose. Waiting until month-end makes the process harder for everyone. 5. Sync to the accounting system Accounts payable tools are most valuable when they connect directly to the accounting system. Once the receipt, memo, vendor, category, and approval are attached, the transaction can flow into the books with less manual cleanup. That makes reconciliation easier and gives the owner more confidence that expenses are complete. 6. Review exceptions monthly The goal is not perfection. The goal is to catch issues quickly. Each month, review missing receipts, uncategorized transactions, unpaid bills, duplicate vendors, stale invoices, and any payments missing W-9 or 1099 information. A 10-minute monthly review is much better than a 10-hour cleanup project at year-end. Tools that are available The good news is that small businesses no longer need enterprise-level accounting software to build a strong accounts payable process. There are several financial technology companies that tackle this issue directly. Two of the most common options are Ramp and Brex. Both combine spend management, corporate cards, bill pay, invoice workflows, approvals, and accounting integrations in one platform. Ramp Bill Pay, for example, is an AI-powered accounts payable solution that can capture invoice details, route bills through approval workflows, pay vendors by ACH, card, check, or wire, and sync with accounting systems such as QuickBooks, NetSuite, and Sage Intacct. Ramp also offers a free tier with core Bill Pay features. Ramp can also request payment and tax details from vendors, helping reduce the manual follow-up that often happens around W-9s and vendor onboarding. Brex offers a similar category of tool, with bill pay features designed to import invoices, capture itemized details with AI, route approvals, pay by card, ACH, check, or wire, and sync AP data with accounting systems. Brex’s support documentation also describes bill pay policies that can customize approval chains and dynamically route bills based on attributes such as amount and vendor. These platforms are not just for large companies. They can be especially helpful for small businesses that are growing quickly, adding employees, paying more vendors, or trying to move away from paper-heavy processes. How Pathfinder uses Ramp At Pathfinder, we use Ramp for our own expense and accounts payable needs. It has allowed us to keep our internal process simple, clean, and scalable. Also, full disclosure, we are a Ramp partner. When someone invoices us, the invoice can be emailed or forwarded to a Ramp-provided AP email address. From there, we can review the bill, approve it, and pay the vendor by the appropriate method. If vendor payment or tax information is needed, the system can help collect those details electronically instead of relying on a long email thread. For a very small business like us, the approval process is simple. One person may review and approve bills. As the business grows, additional approval layers can be added so department heads, managers, or owners approve expenses based on amount, vendor, or category. We also use Ramp’s charge card features because many of our expenses are paid online. When a card transaction occurs, the team can be prompted to submit a receipt and memo via email or even text. Ramp’s Gmail or Outlook integration can automatically capture and match receipts from inboxes, which reduces the need for employees to manually upload receipts. This matters because the easier the process is, the more likely people are to follow it. We can issue cards with controls, create spend programs, and limit how cards are used. That means a junior employee can have access to a card without having unlimited spending authority. A card can be used for a specific vendor, a specific type of purchase, a travel need, or a one-off expense. For our business, this has reduced accounts payable and expense management to a few minutes a month. Once receipts and memos are collected and matched to transactions, the data can be pushed into the accounting system. Reconciliation becomes easier, and we have more confidence that expenses are recorded with the backup we need. Why this matters before you “need” it Many small business owners wait until there is a problem before they improve accounts payable. They wait until tax time is painful. They wait until the bookkeeper is asking too many questions. They wait until an employee makes an unauthorized purchase. They wait until a vendor payment gets missed. They wait until an audit, bank request, or due diligence process forces them to produce documentation. By then, the cleanup is harder. A strong AP process is not just about compliance. It is about control. It helps you know what you owe, what you spent, who approved it, where the backup is, and whether the books reflect reality. That kind of clarity helps business owners make better decisions. Signs your business is ready for an AP tool You may not need a full accounts payable platform on day one. But you should start looking at better tools if any of these sound familiar: You regularly chase employees for receipts. Vendor invoices are sitting in multiple inboxes. You are not sure which vendors need W-9s. You spend too much time categorizing expenses after the fact. You have employees using personal cards and waiting for reimbursement. You do not have clear spending limits. Your month-end close takes longer than it should. You are planning for growth, financing, a future audit, or a potential sale. Your accountant keeps asking for missing backup. The right system can save time now and prevent bigger problems later. Software helps, but the process matters most A tool like Ramp or Brex can be a game changer, but software alone does not create a clean process. You still need to decide: Who approves bills? What dollar amounts require additional review? Which vendors can be paid by ACH, check, wire, or card? What receipt rules will employees follow? What memo detail is required? How should expenses be coded? Who reviews missing documentation each month? How will W-9s and 1099 tracking be handled? That is where Pathfinder can help. We work with small business owners to design accounting processes that are practical, scalable, and easy to maintain. We can help you evaluate accounts payable tools, set up workflows, connect systems to your accounting software, clean up vendor records, and build a monthly close process that gives you confidence in your numbers. Your accounts payable process should not live in a pile of receipts, a messy inbox, or the owner’s memory. With the right system, you can pay vendors on time, keep receipts organized, reduce tax-time stress, and build financial records that support the next stage of growth. Ready to stop chasing receipts? Pathfinder can help you build an accounts payable process that works for the way your business actually runs.

AI-driven innovation is transforming industries, with small businesses ready to capitalize as early adopters of cutting-edge technology. Introduction If you run a small business, you already know how quickly the day fills up. There is always another email to answer, another client to follow up with, and another task that somehow becomes urgent. For many business owners in Marion and across Southern Illinois, the challenge is not just growth. It is keeping everything moving without burning out or stretching your team too thin. That is where AI for small business operations is starting to make a real difference. Tools like ChatGPT and Claude are now being used in practical ways to handle routine work and create more time for higher-value activities. Why AI Matters for Small Businesses in Marion, IL Small businesses in small towns operate in a competitive environment where efficiency matters. Unlike large corporations, local businesses often rely on small teams and limited resources. AI automation helps level the playing field. It allows business owners to streamline repetitive tasks without needing to hire additional staff. This creates more time to focus on strategy, customer relationships, and growth. For many Southern Illinois businesses, this shift is not about technology for the sake of it. It is about working smarter with the resources already available. Real-World Uses of AI in Daily Operations AI is already showing up in everyday workflows across small businesses. One common use is note-taking during meetings and client calls. AI tools can summarize conversations so business owners can stay focused and engaged. Another area is client intake. When a prospect reaches out, AI can organize their information into a clear summary, making it easier to respond quickly and professionally. AI is also helping with document drafting and research. While human review is still essential, AI can significantly reduce the time required to get started. Recently Claude and Chat GPT have released platforms that allow you to connect your business' infrastructure allowing you to ask your AI a question, and quickly get the answer you need to make business decisions. How Our Firm Uses AI As an accounting and technology firm trying to stay on the cutting edge of technology for small businesses, we use AI in practical ways that directly benefit our clients. We use AI to summarize meetings, streamline client intake, and assist with research related to IRS guidance, state regulations, and GAAP standards. We have also developed tools for specialized areas such as federal grant compliance. These tools help us work more efficiently while maintaining accuracy and professional judgment. What AI Cannot Replace AI is a powerful tool, but it does not replace human expertise. In accounting and advisory services, judgment, experience, and relationships are critical. AI can support these areas, but it cannot replace them. Instead, AI reduces the time spent on repetitive tasks, allowing professionals to focus on decision-making and client service. Why Now Is the Right Time to Start Businesses that start using AI today are building an advantage for the future. Small businesses in Marion, IL have the flexibility to adopt new tools quickly. Starting with small improvements can lead to meaningful long-term gains. AI technology will continue to evolve, and early adoption makes it easier to keep up with those changes. Integrating AI With Existing Tools AI does not require replacing your current systems. Many platforms such as Microsoft 365, QuickBooks Online, and CRM systems already include AI features. Tools like Zapier can further help connect systems and automate workflows. This allows businesses to improve efficiency without major disruptions. Conclusion AI for small business is not about replacing people. It is about helping businesses operate more efficiently and focus on what matters most. For business owners and leaders, even small improvements can create meaningful results. By starting with practical use cases, businesses can save time, improve operations, and position themselves for growth.

When a new child savings account comes with a $1,000 government contribution, it is going to get attention. That is exactly why many parents have been asking about “Trump Accounts” and whether they should open one for their child, especially with how easy it was for 2025 on the tax return. The answer can be chalked up to, it depends. For some families, especially those with a child who qualifies for the federal pilot program, opening a Trump Account may make sense simply to capture the free $1,000 seed contribution. But for many other families, especially those who do not qualify for that pilot benefit, the account may be far less attractive than it sounds. And for Illinois families saving for education, a 529 plan will often remain the stronger primary planning tool. What is a Trump Account? Providing a pilot contribution may be an easy way to jumpstart investing, but taxpayers should understand the future benefits and if they make sense based on family goals. A Trump Account is a new type of child-owned investment account under Internal Revenue Code Section 530A. The account is generally available for a child under age 18 who has a valid Social Security number. The feature getting the most attention is the one-time $1,000 Treasury pilot contribution for eligible children. Form 4547 is used to elect the account and request the $1,000 pilot contribution for qualifying children. That pilot contribution is limited. The $1,000 seed applies to children who are U.S. citizens, have a valid Social Security number, and were born between January 1, 2025 and December 31, 2028. For those families, the case for opening the account is pretty straightforward: free money is free money. But once you move past the seed contribution, the analysis changes. The biggest issue: no seed, no obvious advantage For families whose children do not qualify for the $1,000 pilot contribution, the Trump Account loses much of its appeal. Family contributions are not deductible, the investment options are limited, the account is largely locked up before age 18, and the child generally controls the account at adulthood. Also, earnings are generally taxed as ordinary income when withdrawn, even though certain withdrawals may avoid the 10% penalty, like first-time home buyer, like any other individual retirement account. That last point is important. Many families hear “tax-advantaged account” and assume it works like a 529 plan. It does not. With a 529 plan, qualified education withdrawals are generally tax-free at the federal level. That means if you save for college or other qualified education costs, the investment growth can come out tax-free when used properly. The IRS describes 529 plans as qualified tuition programs that allow tax-free treatment for qualified education expenses. By comparison, Trump Account earnings may be tax-deferred while the money grows, but that does not automatically make the earnings tax-free when withdrawn. That is a major difference for parents who are mainly trying to save for education. Why Illinois families should be especially careful Illinois families have another reason to pause before treating a Trump Account as the default savings vehicle. Illinois offers state tax benefits for contributions to qualifying Illinois 529 plans. Illinois taxpayers may be able to deduct up to $10,000 for single filers or $20,000 for married couples filing jointly for contributions to qualifying Illinois 529 plans. That deduction can make a real difference, saving up to $990 in Illinois income tax for taxpayers who max out their contributions. For example, if an Illinois married couple contributes to an eligible Illinois 529 plan, they may receive a state income tax deduction, subject to the applicable limits and rules. A Trump Account does not offer the same tax benefits, and any contributions are not deductible. So if your child does not qualify for the $1,000 federal seed, and your main goal is college savings or you expect the value to be less than the $35K Roth rollover limit for the beneficiary, it may be hard to justify a Trump Account over a 529 plan. In plain English: Illinois rewards you for using a qualifying 529 plan, a Trump Account does not have any tax rewards, even at the federal level. Trump Accounts are investment accounts, not savings accounts Another misconception families need to avoid is thinking of a Trump Account as a bank savings account. It is not. Trump Account investment options are limited to low-cost mutual funds or ETFs that track broad U.S. equity indexes. That can be a good long-term investment structure, but it also means the account is exposed to market risk. The value can go up, and it can go down. That is not necessarily bad. Long-term investing for a child can be a powerful tool. But parents should understand what they are opening. This is not a guaranteed savings bond. It is not a high-yield savings account. It is an investment account with rules, limits, tax consequences, and future control issues. Control matters too One of the underappreciated differences between a Trump Account and a 529 plan is control. With a 529 plan, the account owner, usually the parent or grandparent, generally keeps control of the account. If one child does not need all the funds, the beneficiary can often be changed to another qualifying family member. There are also newer rules that may allow certain unused 529 funds to be rolled to a Roth IRA for the beneficiary, up to $35,000 if the account has been open for 15 years. With a Trump Account, the account is child-owned, and the beneficiary generally has control at adulthood. Some families may be comfortable with that. Others may not be. This is not just a tax question. It is a planning question. When might a Trump Account make sense? I do not think Trump Accounts are useless, but outside of the $1,000 pilot contribution, there is no difference between a Trump Account and a traditional IRA which can be opened in 5 minutes on the website of a brokerage like Fidelity or with your local financial advisor. I just think they need to be put in the right place. A Trump Account may make sense if your child qualifies for the $1,000 pilot contribution. In that case, I would generally view the account as a “claim the seed money” opportunity. It may also make sense if an employer, charity, or other third party is contributing money that your family would not otherwise receive. The only other area in which it may make sense to open and contribute to a Trump Account is if you already are maxing out every other account you have, allowing you to put up to $5,000 a year towards a future goal. But if there is no government seed, no employer contribution, and no charitable contribution, and you aren’t maxing out every other account, the account becomes much less compelling for most families. At that point, parents should ask: what does this account do better than a 529 plan, Roth IRA, custodial account, brokerage account, or simply funding other family goals? For education-focused families, the 529 plan often wins. My practical recommendation If your child qualifies for the $1,000 federal seed, open the Trump Account to capture that $1,000 seed benefit. But do not assume every future dollar should go there. If your child does not qualify for the seed, be cautious. Without the upfront government money, the Trump Account may not be the best first choice, especially if your primary goal is education savings. If you live in Illinois, look closely at the Illinois 529 options before funding a Trump Account. The combination of potential Illinois tax deductions, federal tax-free qualified education withdrawals, higher education-focused flexibility, and parent control can make a 529 plan a much better fit for many families. The bottom line is simple: a Trump Account may be worth opening for the free money, but it should not replace thoughtful planning. For many parents, especially in Illinois, the better strategy may be to use the Trump Account only if there is a real outside contribution and continue treating the 529 plan as the main education savings vehicle. Before opening or funding either account, you should talk with your tax advisor. The right answer depends on your child’s eligibility, your state tax situation, your education goals, your cash flow, and how much control you want over the money later.

A key part of the tariff refund eligiblity is whether or not businesses paid the customs and dities themselves or were connected to a broker, limiting those who can make claims for refunds. Update: The United Parcel Service (UPS), Federal Express (FedEx), and DHL Express have stated that they will be working to request refunds for all shipments that fall within CAPE phase 1 which they were the importer of record. Once refunds start coming in, these shippers plan on passing along these refunds to clients. It is expected to take up to 90 days for the importers to receive these refunds. There has been a lot of buzz lately about a new federal portal for tariff refunds announced this week. If you are a small business owner, you may be wondering: Can my business get money back? The answer for most small businesses is: most likely not. That does not mean the portal is fake or that refunds are not happening. They are, but this is not a broad program for every business that paid more because tariffs pushed prices up. It is a much narrower process for businesses that were directly involved in importing goods and paying certain tariffs to the U.S. government. That distinction is important, because a lot of small business owners may hear “tariff refund” and assume, “We paid more for inventory, so we should be able to claim something.” In most cases, that is not how this works. The Short Version Here is the easiest way to think about it: If your business bought goods from a U.S. supplier, wholesaler, distributor, retailer, or another business that had already imported them, you probably cannot file a claim through this portal. If your business directly imported goods into the United States under your company’s name, then you might be able to claim a refund. So the real question is not, “Did tariffs affect my costs?” The real question is: Was your business the one that officially imported the goods and paid the qualifying tariff? For most small businesses, the answer will be no. Why Most Businesses will Not Qualify I think at this point we can say most, if not all businesses were hurt by tariffs indirectly. For example, maybe you run a retail store, a machine shop, a manufacturing company, or an e-commerce business. You bought products or materials from a supplier, and your supplier raised prices because tariffs made their costs go up. That means your business felt the impact of tariffs. But it does not necessarily mean your business has a refund claim. The government is not offering refunds to everyone who ended up paying more somewhere along the chain. The refund process is mainly for the business that was legally responsible for the customs entry when the goods came into the country. That is why many small businesses will not qualify, even if tariffs clearly increased their costs. The Key Term: "Importer of Record" This is one of the most important terms in the whole conversation, so let’s make it simple. The importer of record is usually the business officially listed on the customs paperwork when goods enter the United States. That is the party responsible for dealing with Customs and Border Protection, often called CBP, and for paying the duties tied to that import. If that was your business, you may have a possible claim. If that was your supplier, freight company, foreign seller, or another party, then your business probably does not. You do not have to be the person who personally clicked “pay” on a government website. Many importers use customs brokers to handle filings and payments for them. That alone does not disqualify you. What matters is whether the import was filed under your company’s name. So a better rule of thumb is this: If the customs entry belonged to your company, you may have a path. If it belonged to someone else, you probably do not. This is not a refund for every kind of tariff Another point that can be confusing: this new refund process does not apply to every tariff that has ever affected a business. It is tied to a specific group of tariffs that were later found to be invalid, the IEEPA tariffs (International Emergency Economic Powers Act fo 2025). In other words, this is not a general “tariff rebate” for all businesses for all tariffs. That means even some businesses that imported goods directly may still find that their situation does not qualify under this particular process. So even if your business imported goods itself, the next question is whether the duties you paid are the type that the portal is actually set up to refund. Simple Examples Example 1: Probably not eligible You buy your inventory from a U.S. distributor in California. That distributor imported the goods from overseas and built the tariff cost into the price they charged you. In that case, your business paid more, but your business probably did not pay the tariff directly as the importer. You likely do not have a direct refund claim through the portal. Example 2: Maybe eligible Your company buys goods from a factory overseas and imports those goods into the United States under your own business name. Your customs broker handled the paperwork, and the import records show your company as the importer. In that case, your business may have a valid reason to look into the refund process. Those two examples sound similar on the surface, because both businesses were affected by tariffs. But only one of them may actually be in a position to file a claim. If you might qualify, move carefully If your business did import goods directly under its own name, then the next step is to gather the right records and confirm whether your entries fit the current refund process. That usually means looking at things like: · customs entry paperwork · broker statements · dates of import · liquidation status · the type of duty paid · refund setup details in the customs system This is where things can get more technical, and where many businesses will want help from a customs broker or trade attorney rather than trying to figure it out from headlines alone. The good news is that if your company really was the importer and paid the qualifying duties, there may be a path forward. The bad news is that it is not as simple as filling out a basic rebate form. Conclusion Yes, the new tariff refund portal is real, but it does not mean every small business that paid more because of tariffs can now get a refund. For most businesses, the deciding factor is simple: Were you the business that officially imported the goods and paid the qualifying tariff? If not, you probably do not have a direct claim. If yes, you may have a possible path, but it will likely require records, review, and help from someone who works with customs filings. So if you are a small business owner asking, “Can I claim this refund?” the honest answer is: Most likely no, unless your business was the actual importer. That is the place to start before you spend time, energy, or money chasing the wrong opportunity. Disclaimer: This article is for general information only and is not legal advice. Businesses with possible claims should speak with a licensed customs broker or trade attorney.

New years goals are important for small businesses, allowing owners to plan and direct their energy to their goals. As we all wind down and are looking to take stock of 2025, small business owners are also looking forward to seeing what the coming year will look like through small business planning. In a year marked by tariffs, high interest rates, and uncertain consumer sentiment; Small business owners are hoping for some relief and stability to help them better project what the future will look like coming into the new year. Business owners should be looking forward and sharpening those pencils to create not only a well-oiled machine, but one which the only surprise is a good one. Looking at the economies future as well as developing goals to help businesses stay competitive in 2026 and beyond. The Economy The economy is looking to at least become somewhat more predictable compared to recent years. Per Reuters, economists are expecting the Gross Domestic Product (GDP) growth to be about 2%, as well as an inflation projection of between 2-3%. These numbers are very consistent and are what most economist projections would consider to be a normal and stable inflation and GDP growth rate. For small businesses, this means you will be able to stop, consolidate, and take quick breather from the whirlwind of high inflation paired with a stable GDP growth in the previous few years. Another important impact on the economy is the recent news that the Federal reserve has decreased what is known as the Federal Funds Rate by .25%. Currently in December 2025, the fed rate is in the range of 3.50-3.75%. In early 2024, the rate was 5.25-5.50%. The Federal Reserve has signaled that they are expecting one more rate cut to happen in 2026, further lowering the rate by at least .25%. This huge decrease in rates will lead to easier borrowing for businesses in 2026 to help fund expansion plans. Your Business Now is the time to look to what you have done in 2025 on your income statement and project what the neutral scenario is for your business. Assume that your revenue and expenses will grow by 2%, and make sure you are forecasting your cash to make sure you’re not going to be in a cash crunch which could have been foreseen. Businesses should be looking at things like pricing, how much cash they have in reserves, and how leveraged with debt those businesses are. If you weren’t a first mover on increasing your prices, now is the time to start doing it. Especially those in food service, retail, and hospitality who may have been afraid to raise prices. Most likely these businesses in 2025 have started to grow market share due to being perceived by customers as a “value”. 2026 is the time to test the water to see if any of these new value consumers have developed a brand loyalty and will continue to be customers. If it’s done right, modest and transparent price hikes will either lead to revenue staying the same with less input costs due to capturing more revenue per customer while having less customers or will increase your revenue. Both scenarios should be viewed as positives for businesses unless you can continue to take the hit to gain even more customers. Smaller businesses should also start looking at their balance sheets, the statement that shows the business’ assets, debt, and equity. Businesses should look at their cash position and try to build a cash cushion if they can. A good starting place would be to have 6 months of operating expenses in the bank, but that is a stretch goal, especially for smaller businesses. Having the cash on hand will help you weather the storm, especially in the case in which a vendor payment comes in late. If you’re carrying debt, also determining whether to refinance the debt either to lock in an interest rate which most likely will not go any lower, or to just move your variable interest rate debt to fixed-rate debt to ensure your debt costs do not balloon in the future. Unless there is a determinable return on investment, smaller businesses should avoid any large new loans and keep their money to build the cash reserves from above. Business Backoffice Businesses should be looking to streamline as much of the admin side of their business as possible, allowing key employees to focus on building new revenue, and managing employees. Some streamlined items may also help reduce the time it takes for businesses to get paid, allowing your business to maintain a healthy cashflow. Using a platform to send invoices to clients via email and accepting card payments is a great first step for small businesses. It decreases the barriers to you getting paid, but what about for clients or customers who are slow to pay? Most platforms allow you to schedule notification reminders to customers for unpaid invoices. This should help bring down the time outstanding for your invoices by ensuring you don’t slip through the cracks for you clients. Another way to help your business is by ensuring your technology can connect to each other and share data. It will allow you to cut down on repeating client data entry from client onboarding, doing the work, to client invoicing. Keying in the same information multiple times really stacks up, especially for businesses which may have many customers. This day and age most technology has a webpage letting you know what other software it connects to. Make sure you’re investigating this before making any change decisions for your business’ tech stack. Lastly, and I’m cautious to say this, try out one of the many publicly available LLM Artificial Intelligence models. These models include Open AI’s ChatGPT, Microsoft’s Copilot, or Googles Claude model. If you’re a low stakes user not looking for anything complex, they all are interchangeable. These models can be used to do things’ like draft emails for you, help come up with ideas, drafts skeletons for documents like employee manuals, press releases, or doing a light audit of your business compared to the local competition. All of this “busy work” is stuff that would normally take hours, but if you do it right through an LLM model, could take 15 minutes. The thing to keep in mind though is that the AI should not replace human judgement. At the end of the day, you are the face of the business, so the AI by extension is you. Also ensure you are not inputting sensitive data into your prompts, as most of these models’ free version uses your prompts to help train the model. Workforce Development At this point in time, the labor market is still tight, even with a recent unemployment rate increase to 4.6% in November 2025. Bank of America surveyed owners and found that 61% of them are feeling the recent labor shortage, and 40% of them have started to increase wages to attract new talent. Pair this with the fact that only 1% are planning for layoffs and 43% plan to hire more, that means that the market is going to start getting tighter, so ensuring your employees are happy or you will risk losing them. With turnover expected to be lower, expectations from employees will start to rise. You should focus on staying competitive in the market either through raising wages and bonuses to the market. Also, don’t neglect benefits like health plans, retirement matches or out-of-the box perks like extra PTO, flexible work arrangements (ie. Work from home), or even the occasional appreciation event. Culture and growth are also areas which can help develop a solid workforce, as well as ensuring everyone feels like they’re a part of the team. Ensuring your organization has a great culture as a great way that businesses can keep baseline employees, but your most competent employees who also need a transparent path that allows them to grow both within the organization, but also through professional development. Ensuring you are continuously developing them and allowing them to move up will help ensure they aren’t asking “What’s next?” It’s understandable that this could be an issue for smaller businesses which are not experiencing growth, but for those that are, it’s a great way to ensure you’re not losing valuable knowledge. Conclusion Ensuring that you keep these points in mind, you’ll look to finish 2025 strong and look to how your 2026 will shape out for your business. From the general economy, your business’ finances, to your business’ Backoffice and workforce, now is the time to start putting plans in place to ensure your business is working more for you and your employees, as well as not providing you any unneeded stress throughout 2026.

Retirment savings are a great way for individuals to ensure they are setup for the future, but to also save on taxes, depending on the account you use With the recent reopening of the federal government, the IRS had recently released it's updated limits for retirement contributions for 2026. Retirement contributions to plans such as a 401(k) are a great way for individuals to not only save for retirement, but to also lower their income tax bill by being able to decrease their taxable income by their contributions. Being aware of these changes will help those who save for retirement ensure that they are not stuck with the surprise of having to withdraw their additional contributions over the limits or getting hit with a tax bill for the additional contributions. In order to make changes to your contributions as an employee, most employers make it easy to do either through an online portal, likely the same portal used to see your paystubs, or through the online portal of where your retirement account is held. 401(k), 457, 403(b) Retirement Plans Most employees have one of the above retirement plans, as they have become the main vehicle for Americans to save for retirement. In 2025 the maximum contribution you could make for the entire year was $23,500 per year. In 2026, the contribution limits for these 401(k), 457 and 403(b) plans has increased by $1,000 to $24,500 for the year. For employees age 50 or older, the contribution catchup that allows you to contribute more over the limit has been increased from $7,500 in 2025 to $8,000 in 2026, allowing these employees to contribute $32,500 for 2026 to their 401(k), 403(b), or 457 plans. If you have maxed out your contributions for 2025 and are or are looking to max your contributions in 2026, you will have to review your elections come the new year and make adjustments to ensure you max out your contributions. Individual Retirement Accounts If individuals are not able to take advantage of the above plans, they most likely will have either a traditional or roth Individual retirement account (IRA). The Roth IRA allows you to make contributions after income tax is paid, allowing the retirement withdrawals to be tax free when it comes time for those distributions. Traditional IRA contributions can be deducted from the individuals income tax in the year they were contributed, but the distributions in retirement are taxable. These accounts had a total contribution limit in 2025 of $7,000 in total between the accounts for the year with a age 50 or older catchup provision of $1,000. In 2026 the contribution limit has been increased to $7,500 with a catchup increase of $1,100, allowing those 50 or older to contribute $8,600 throughout the year. Making changes to these accounts is normally done through whatever financial institution where your account is held, either through a banks' wealth arm, a brokerage, or an online servicer. Conclusion With the price of everything and the cost of living going up, the IRS every year makes adjustments to the maximum retirement contributions to ensure that individuals with these accounts do not get left behind when it comes time for retirement. Ensure that you at a minimum review your retirement and are aware of any changes at least once a year to make sure you're in compliance and maximizing your future retirement earnings and tax savings.

1040 season is right around the corner. Make sure you're not left behind and have your records organized ahead of time. As the new year approaches, it's the perfect time to make sure you're on track for a smooth tax season. Whether you're filing on your own or working with a professional, early preparation can help you avoid stress, reduce the risk of errors, and even uncover potential savings. Here are some of the most common tax preparation issues individuals face, and how to stay ahead of them for 2025. 1. Disorganized Financial Records One of the biggest obstacles to accurate and timely filing is disorganized documentation. Missing receipts, misplaced W-2s or 1099s, and incomplete bank statements can delay your return or lead to inaccurate filings. Start now by setting up a digital or physical folder labeled "2025 Taxes" and drop in documents as they arrive. Many tax documents start arriving in January, but organizing your income, deductions, and major expenses from 2024 now will save headaches later. 2. Overlooking Income Sources and Tax Forms More people are working side gigs, freelancing, or earning income from investments. These non-traditional income streams often go unreported, either due to oversight or misunderstanding. It's essential to track all forms of income and ensure you receive the correct tax forms: W-2 Forms : Employers are required to provide W-2s by January 31, 2025 . These forms report your wages and the taxes withheld. If you haven’t received your W-2 by early February, check your company’s payroll portal or contact your HR department. 1099 Forms : There are multiple types of 1099s. Common ones include: 1099-NEC  for contract or freelance work (due by January 31, 2025). 1099-MISC  for miscellaneous income. 1099-INT , 1099-DIV , or 1099-B  for interest, dividends, and investment sales (usually sent by February 15 ). 1099-K  for payment card and third-party network transactions, especially from platforms like PayPal or Venmo, if your income exceeds the IRS threshold. You can typically access these forms via your bank, brokerage account, or payment app dashboard. Review these portals in early February to make sure you haven’t missed anything. Make a list now of all income sources from 2024, including self-employment, rental income, or stock sales, so nothing slips through the cracks. 3. Ignoring Changes in Tax Law Tax law evolves, and missing key updates can cost you. For tax year 2025, watch for any changes to standard deductions, credit eligibility, or reporting requirements. For example, the no tax on tips and overtime has thrown a wrnech into documentation because the W-2 form has not been updated to reflect these numbers, meaning employees not only have their W-2, but the final paystub of the year which would report the years tips and ovetime numbers. Staying informed through a trusted CPA or IRS resources can help you plan smarter. 4. Missing Out on Deductions and Credits Many individuals leave money on the table simply because they don't know what they're eligible to claim. Commonly missed items include student loan interest, educator expenses, charitable contributions, and medical costs. If you experienced a major life event in 2024, such as marriage, a new child, home purchase, or job change, you may qualify for new credits or deductions. Talk to a tax advisor now to understand what documentation you should be gathering. 5. Waiting Too Long to File Procrastination is a common tax trap. Waiting until the last minute limits your options and increases the chances of mistakes. It also leaves little time to resolve surprises, like a missing form or an unexpected tax bill. The earlier you prepare, the more control you have. Especially as the IRS becomes even more woefully understaffed and fragmented, running into an unexpected issue in mid April could be a frustrating experience for taxpayers. Consider setting a goal to finalize your documents by mid-February and schedule a filing appointment or online submission soon after. Final Thoughts Tax season doesn’t have to be stressful. A little preparation now goes a long way toward a smoother filing process. At Pathfinder, we help individuals navigate the complexities of the tax code and maximize their returns with confidence. If you're unsure about your situation or want expert guidance, reach out to our team today. Let’s make 2025 the year you file early, accurately, and stress-free.

If you run a service-based business, be it HVAC, plumbing, roofing, or an agency, you have felt like you underquoted a job before. You won the job, did everything right, but when you ran the numbers at the end, there was nothing left from the job. It’s frustrating, but there is a way to make sure you’re pricing yourself correctly, as well as remaining profitable on the job. That’s where infrastructure to do project costing and matching to estimates comes into play. Done right, it’s one of the most valuable tools you can use to grow a more profitable and sustainable business. Running the numbers before, during, and after the project are important for a profitable service based business. Getting Real with Your Numbers Project costing is the process of accurately keeping records for the costs that you have put into a job, from materials, labor, subcontractors, and the overhead costs for your admin team. By tracking these costs against your original estimate, you’re able to create a feedback loop to not only ensure your job is profitable, but that when you go to market for any new jobs, you’re able to provide better quotes that get you profitable jobs. Estimating is only as good as the data it’s based on, so if you’re winging it with guesses, you’re gambling with your business. Why It Matters When you consistently compare your actual costs to your estimates, you can: ·       Improve Future Quotes : You can see where you went wrong in previous jobs with your quotes, allowing you to get better, and making your future quotes more accurate. ·       Identify Your Most Profitable Work : Every job isn’t equal. Project cost tracking shows you which types of projects deliver the best return, allowing you to focus your marketing to win more of these higher margin jobs. ·       Spot Scope Creep Early : When your actuals start to drift away from your estimates, you can flag it quickly. It gives you a chance to reset expectations with the client or make changes before the profitability takes a hit. Start Simple, But Start You don’t need a fancy accounting system to get started. A spreadsheet can do the trick for smaller operators, but accounting software like Xero or QuickBooks Online supports estimates, and project costing, allowing you to do it in one software. The key is to become consistent with your operations. You get to capture every cost, match it to the job, and review it once the project wraps. What We See at Pathfinder At Pathfinder Accounting & Tax, we work with a lot of service-based businesses, from trades to agencies. The ones who nail project costing are the ones who tend to grow steadily, price with confidence, and build more resilient businesses. If you want help setting up a better system for tracking job costs and refining your estimates, get in touch. It’s one of the smartest moves you can make for your bottom line.

Smaal retailers are dealing with the slowdown in consumer spending and belt tightening that is starting to appear in early 2025. The first half of 2025 brought both opportunities and challenges for small retailers. Consumer spending remains positive, but growth is slowing compared to prior years. Inflation has cooled from pandemic highs, yet costs for essentials like food, housing, and shipping continue to squeeze both shoppers and store owners. Key insights from the white paper: Consumer Demand  – Retail sales are still rising, up about 3–4% year-over-year, but shoppers are cautious and saving more. Value and loyalty will matter more than ever. Inflation & Prices  – Costs are up around 2.5% annually. Many small businesses (60%) have already raised prices, but careful pricing strategies and efficiency are critical to staying competitive. Labor Market  – Unemployment is near historic lows, making hiring tough. Small businesses may need creative staffing approaches or added perks to retain workers. Tariffs & Supply Chains  – New tariffs have pushed costs higher and created supply chain challenges, with nearly half of small businesses adjusting suppliers this year. Financing  – Loan rates remain elevated (6.6–11.5%). Locking in fixed rates or exploring SBA programs can help manage borrowing costs. Local Opportunities  – In southern Illinois, nearly $900M in tourism spending in 2023 has boosted local shops. Retailers who tap into visitor traffic can find growth opportunities despite national headwinds. Bottom line:  Small retailers in 2025 face modest growth, tighter margins, and labor challenges. Staying adaptable by managing costs, diversifying suppliers, and connecting with local demand will be key to weathering uncertainty and finding opportunity.

Small business financials & bookkeeping can become a mess if you don't have the time or experience. As a small business owner, you're used to wearing many hats. Sales, customer service, marketing, and especially bookkeeping. But as your business grows, juggling your books alongside everything else can quickly become overwhelming and risky. So how do you know when it’s time to hire a professional bookkeeper? We’ll walk through the key signs that it’s time to bring in expert help, the benefits of hiring a bookkeeper, and how to get started. 1. You’re Spending Too Much Time on Bookkeeping If you’re spending more time updating spreadsheets than serving customers or growing your business, it’s time to reassess. Bookkeeping is essential, but it shouldn't be the task that eats into your evenings and weekends. Hiring a bookkeeper can free up hours each week so you can focus on what you do best, serving your customers. 2. You’re Behind on Financial Records Are your books always a few weeks, or months behind? Late invoicing, missed expense entries, and scattered receipts can lead to cash flow issues and tax-time chaos. A bookkeeper will keep your records accurate and up to date so you can make smarter business decisions year-round. 3. Tax Season Is Stressful (and Risky) Do you dread tax season? Scrambling to pull together reports and receipts can lead to errors, missed deductions, or worse an audit. A bookkeeper ensures everything is in order, so when tax time rolls around, your CPA has everything they need and you can breathe easier. 4. You’re Not Sure How Your Business Is Doing Financially Can you confidently answer these questions: What’s your monthly profit or loss? How much do clients owe you? Are you overspending in any category? If not, your books aren’t giving you the insight you need. A bookkeeper provides accurate reports that help you make informed, data-driven decisions. 5. Your Business Is Growing Growth is great, but it also means more transactions, more expenses, and more complexity. As your team, customer base, or revenue grows, DIY bookkeeping can become a liability. A professional bookkeeper helps you scale confidently and stay financially organized. Ready to Take Bookkeeping Off Your Plate? If you’re seeing these signs in your business, now might be the perfect time to hand your books over to a professional. Whether you need monthly reconciliation, invoicing support, or full-service bookkeeping, we’re here to help. You'll get your time back, lower your stress, are able to see how your business is actually doing, and lower your future tax preparation costs. Contact us today  to schedule a free consultation and see how we can help your business thrive.

As a nonprofit leader, your mission to create a positive impact on your community or cause is the driving force behind your work. However, ensuring your organization remains in good standing with donors, funders, and the IRS is just as crucial. Failure to stay compliant with nonprofit accounting standards can lead to serious consequences, including the loss of tax-exempt status or ineligibility for future grants. This guide covers essential IRS regulations, grant accounting standards, and practical tips to ensure your nonprofit remains compliant. Understanding IRS Regulations for Nonprofit Organizations Nonprofit organizations are subject to a unique set of rules established by the IRS, particularly under Section 501(c)(3) of the Internal Revenue Code . While tax-exempt status is a significant benefit, it comes with specific accounting obligations. Here are key areas where nonprofits must remain compliant: Accurate Recordkeeping for Nonprofits The IRS mandates that nonprofits maintain detailed financial records, including income, expenses, and donations. Good recordkeeping ensures tax compliance and fosters transparency with stakeholders. Key records to track include: Donor Contributions Grants and Funding Sources Salaries, Benefits, and Expenses Assets and Liabilities Filing Annual IRS Forms (Form 990) Nonprofits must file an annual return with the IRS, commonly known as Form 990 . This form provides a comprehensive overview of your nonprofit’s financial activities. The specific form you file depends on your organization’s annual revenue and amount of assets: Form Type Gross Receipts Total Assets Form 990 Over $200K Over $500K Form 990-EZ Under $200K Under $500K Form 990-N (e-postcard) Under $50K N/A Proper Classification of Employees and Contractors Ensure that your nonprofit correctly classifies individuals as employees or independent contractors. Misclassification can lead to tax issues, including incorrect payroll tax withholding. Proper classification is essential for compliance. Unrelated Business Income Tax (UBIT) If your nonprofit generates income from activities unrelated to its exempt purpose, it may be subject to Unrelated Business Income Tax (UBIT). The IRS requires nonprofits to pay taxes on non-charitable income, such as revenue from a gift shop or paid events. Donor Restrictions Compliance If your nonprofit receives restricted donations, you must track and use the funds as directed by the donor. Failing to comply with donor restrictions can jeopardize your nonprofit's status. Adhering to Grant Accounting Standards Compliance with grant accounting standards is critical to ensuring responsible fund management and accountability to funders. Whether your nonprofit receives government grants, foundation grants, or corporate sponsorships, it’s essential to follow the guidelines for proper fund allocation and reporting. Nonprofit leaders need to ensure their organization follows more complex accounting standards, especially when grants are involved. Grant Budgets and Reporting Each grant comes with a specified budget detailing how funds should be spent. Ensuring strict adherence to this budget and providing regular reports—such as progress updates and financial statements—is necessary for continued funding. Cost Allocation for Grants Proper cost allocation is vital for maintaining grant compliance. Direct costs (e.g., staff salaries) and indirect costs (e.g., office rent) must be tracked separately and in accordance with grant terms. Funders may impose restrictions on administrative costs or require documentation for indirect expenses. Audit Trails and Grant Audits Many grantors require an audit or independent review. To prepare for audits, maintain a clear and organized audit trail, including records of all financial transactions, invoices, receipts, and supporting documents. Tracking Funds Received vs. Funds Expended Grantors want assurance that funds are being used as intended. Nonprofits must track the funds they receive and compare them to actual expenditures to ensure compliance with the grant’s terms. Address any discrepancies promptly. Best Practices for Nonprofit Accounting Compliance To avoid mistakes and maintain compliance with IRS regulations and grant accounting standards, follow these best practices: Implement a Robust Accounting System : Set up an accounting system that allows you to track donations, grants, expenses, and assets in real-time. This can be done with a nonprofit specific accounting system, or setting up and using your accounting system correctly. Train Your Team : Ensure your finance and program staff are trained on nonprofit accounting requirements, both for IRS reporting and grant compliance. Segregate Restricted Funds : Create separate accounts for donations with restrictions to ensure funds are used according to donor intentions. Consult Professionals : If you’re unsure about specific tax or accounting requirements, consult a nonprofit accountant or financial advisor for guidance. Conclusion: Ensuring IRS and Grant Compliance for Nonprofits Staying compliant with IRS regulations and grant accounting standards is crucial for maintaining your nonprofit's tax-exempt status and eligibility for funding. By keeping accurate records, adhering to grant terms, and staying updated on regulatory changes, your organization can continue to focus on fulfilling its mission while maintaining transparency and accountability. By following these guidelines and maintaining strong financial practices, your nonprofit can ensure long-term success and continue making a meaningful impact. Struggling with nonprofit compliance? Contact Pathfinder Accounting & Tax today for expert accounting services tailored to your mission-driven organization.