Sometimes, the only thing preventing small businesses from using “big business” financial strategies is the right advisor to point the way.
In this post, we’ll share how recent changes in the tax law make it possible to accelerate certain deductions, improve cash flow, and leverage short-term liquidity to invest in growth now – not later.
What does it mean to accelerate deductions?
The basic concept of accelerating deductions is simple. You use the tax benefits of a deduction in the current tax year, instead of waiting to take the savings later.
There are many ways to do this, and many reasons why it’s a good (or bad) idea depending on your situation and goals, but for the purpose of this post, we’ll presume that the business needs to free up cash today, and that accelerating as many deductions as possible supports this goal.
Three key areas where the new rules can work in your favor
1. Research & Development Tax Credits
If you’re developing new products, technology, or even improving processes, you may be eligible to accelerate all R&D tax credits for certain research expenses in 2025 that previously had to be amortized.
2. Interest Expenses
Changes in how interest deductions are calculated can increase your ability to write off more interest expenses in the current year.
3. Equipment Purchases
Expensing (instead of depreciating) new computers, vehicles, or machinery can put money back into your business immediately. The One Big Beautiful Bill permanently restored 100% bonus depreciation and increased the limits for Section 179 expensing.
Why this matters to your business
The advantage isn’t just about paying less in taxes this year. It’s about what that money allows you to do:
- Build a stronger cash cushion
- Reinvest in growth opportunities
- Pay down debt faster
- Weather unpredictable markets with more confidence
But here’s the catch: these opportunities aren’t always straightforward. The tax code is complex, and applying these rules correctly depends on your unique situation. Missteps could mean leaving money on the table or exposing yourself to penalties later.
The role of advisory accounting
This is where having a proactive accounting partner makes all the difference. A good accountant will:
- Translate tax law into real-world strategies you can apply to your business today
- Integrate tax deductions into your cash flow planning, so you can see the impact on your budget and goals
- Set up compliance routines that help you maximize benefits now without creating future headaches
Big corporations already take advantage of these rules – small businesses deserve to benefit, too
Ready to go beyond cutting your tax bill to unlock new possibilities for growth, stability, and long-term success?
Let’s talk.
