Bookkeeping Newsletter
July 2025 Edition

Hello Clients & Friends,

Summer is here, and so is your mid-year financial checkup! July is the perfect time to pause, reflect, and make sure your books and business goals are on track for the rest of 2025.

In This Edition

• Mid-Year Bookkeeping Tips

• New IRS Updates for Small Businesses

• Smart Money Moves for Q3

• Client Q&A: How Often Should I Review My Financial Reports?

Mid-Year Bookkeeping Tips

• Reconcile Accounts
  Double-check that all bank and credit card accounts are reconciled through June 30.

• Review Profit & Loss
  Compare year-to-date actuals with your budget. Are you over or under in key areas?

• Catch Up on A/R & A/P
  Follow up on overdue invoices and pay outstanding bills on time to keep vendor relationships strong.

• Assess Payroll & Tax Liabilities
  Ensure payroll taxes are current and quarterly estimated tax payments are made.

• Plan for Equipment or Major Purchases
  Mid-year is a great time to plan ahead before year-end rush spending.

For eCommerce Businesses

Mid-Year Tips

• Audit your shipping costs to ensure you’re getting the best rates.

• Review your sales tax nexus in other states—new thresholds may trigger filing requirements.

• Automate inventory syncing between your online store and bookkeeping software.

• Reminder: Payment processors such as Stripe, Shopify, and PayPal issue 1099-K forms if thresholds are exceeded. Ensure gross sales match your records.

For Landscapers & Lawn Care Professionals

Mid-Year Tips

• Summer is peak season—bill promptly to maintain strong cash flow.

• Review outstanding invoices weekly and apply late fees if necessary.

• Track fuel and equipment maintenance costs carefully—receipts are essential.

• Review or add seasonal contracts to avoid last-minute cancellations.

Bonus Tip:
If you hire seasonal workers, organize W-9s and payroll records now to avoid tax issues later.

Don’t Forget: Industry Check-In Calls

We love supporting our clients across every industry.

Book your complimentary, industry-specific review this month to keep your business running efficiently through the rest of 2025.

Book Your Industry Check-In Today
Every industry is unique—let’s ensure you’re following best practices tailored to your business.

Client Q&A

Q: How Often Should I Review My Financial Reports?
A: We recommend reviewing your profit & loss, balance sheet, and cash flow monthly, with a deeper review each quarter. Regular reviews help you make timely decisions, spot errors early, and avoid surprises.

Mid-Year Tax Advice: Stay Ahead & Save

Now is the best time to review your tax strategy and reduce stress at year-end.

Mid-Year Tax Tips

• Review Estimated Taxes
  Adjust Q1 and Q2 payments if income has changed to avoid penalties.

• Maximize Deductions
  Track mileage, home office expenses, travel, and supplies.

• Track Depreciation
  Ensure equipment, vehicles, and furniture purchases are properly recorded.

• Retirement Contributions
  SEP IRAs and Solo 401(k)s can lower taxable income.

• Payroll & Contractor Compliance
  Confirm W-2 and 1099 classifications are correct.

• Separate Business & Personal Finances
  A must for audit protection and clean bookkeeping.

Pro Tip:
Major changes like hiring, expanding, or adding services can impact taxes—plan ahead.

IRS Updates: Stay Compliant

The IRS has announced new reporting thresholds for certain transactions.

• Business payments through Venmo, PayPal, Cash App, and similar platforms may trigger 1099-K reporting over $5,000 in some states.

• Always track transactions accurately and keep business and personal accounts separate.

Smart Money Moves for Q3

• Review subscriptions and recurring expenses.

• Automate savings for taxes.

• Schedule your Q3 strategy session with us to plan ahead.

For Aestheticians & Beauty Professionals

Mid-Year Tips

• Review product inventory and remove expired or slow-moving stock.

• Run a full inventory count and bundle slow sellers as promotions.

• Track tips accurately—tips are taxable income.

• Review booth rental and commission structures for profitability.

For Chiropractors & Physical Therapists

Mid-Year Tips

• Stay on top of insurance reimbursements and patient co-pays.

• Reconcile accounts receivable weekly and follow up on aging claims.

• Evaluate services with higher margins for growth opportunities.

• Keep continuing education expenses documented.

Pro Tip:
If you’re planning to expand or hire, now is the time to plan cash flow.

For Service-Based & Seasonal Businesses

Mid-Year Tips

• Review recurring service agreements and customer payment status.

• Track supply and chemical costs carefully as they fluctuate seasonally.

• Maintain mileage logs—vehicle expenses are major deductions.

Pro Tip:
Offer prepaid seasonal packages to improve cash flow and reduce no-shows.

For Construction Industry Contractors

Mid-Year Tips

• Reconcile job deposits, progress payments, and retainage accounts.

• Compare estimated vs. actual job costs to protect margins.

• Keep subcontractor W-9s on file and issue 1099s correctly.

• Review open jobs in your job-costing software to ensure accuracy.

Pro Tip:
Mid-year is ideal for reviewing insurance certificates, licenses, and bonding.

Ready for a Tax Check-In?

We’re here to make tax time stress-free and help you keep more of what you earn.

Book your mid-year tax review today.

Let’s Talk

Need help with your mid-year review?
Book your complimentary check-in session with your dedicated bookkeeper today.

Helpful Resource

Check out our Free Financial Health Checklist.
Reply to this email or visit our website to download your copy.

Thank you for trusting Profit Solutions.
We’re here to help you stay organized, informed, and ready for whatever 2025 brings.

Happy July—and keep thriving!

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