A bill in Congress — dubbed The One, Big, Beautiful Bill — could significantly reshape several federal business tax breaks. While the proposed legislation is still under debate, it has already sparked attention across business communities. Here’s a look at the current rules and proposed changes for five key tax provisions and what they could mean for your business.

The treatment of research and experimental (R&E) expenses is a high-stakes topic for U.S. businesses, especially small to midsize companies focused on innovation. As the tax code currently stands, the deductibility of these expenses is limited, leading to financial strain for companies that used to be able to expense them immediately. However, proposed legislation, dubbed "The One Big Beautiful Bill," could drastically change that. Here's what you need to know.

Turnover in finance and accounting (F&A) leadership is increasing. In 2024, CFO turnover among Standard & Poor’s 500 companies hit 17.8%, tying a record high in 2021, according to the Russell Reynolds Global CFO Turnover Index. This trend isn’t limited to large corporations. Closely held businesses are also feeling the pinch, as competition for experienced finance professionals intensifies and the accounting profession faces a well-documented talent shortage.

Many businesses turn to independent contractors to help manage costs, especially during times of staffing shortages and inflation. If you’re among them, ensuring these workers are correctly classified for federal tax purposes is crucial. Misclassifying employees as independent contractors can result in significant consequences if the IRS intervenes and reclassifies them as employees. It could lead to audits, back taxes, penalties and even lawsuits.

Determining “reasonable compensation” is a critical issue for owners of C corporations and S corporations. If the IRS believes an owner’s compensation is unreasonably high or low, it may disallow certain deductions or reclassify payments, potentially leading to penalties, back taxes and interest. However, by proactively following specific steps, owners can help ensure that their compensation is perceived as reasonable and deductible.

The month-end close is a pain point for many small to midsize businesses. While internal accounting teams often aim to wrap up the close within three days, a recent survey found that half the respondents actually take six days or longer to close the books. What can your organization do to help streamline this process? Leveraging cloud-based technology tools like QuickBooks® can be a game changer.

In today’s volatile economic climate, organizations face mounting pressures that can increase the risk of fraudulent activities. Auditors play a pivotal role in identifying and mitigating these risks through comprehensive fraud risk assessments and tailored audit procedures.

Annual fraud risk assessments are valuable tools for identifying obvious threats and documenting the internal controls in place to address them. However, these assessments may overlook subtler, evolving, and behavior-driven risks that can lead to serious financial and reputational harm if exploited.

Even successful businesses experience occasional down years. Fortunately, the federal tax code provides a way to help offset those losses, potentially reducing taxable income in future years. It's called the net operating loss (NOL) deduction, and it can be a valuable strategy for businesses facing fluctuating income.