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?ˮ

MID YEAR BOOKKEEPING TIPS

Reconcile Accounts: Double-check all bank and credit card accounts are reconciled through June 30th.
Review Profit & Loss ա Compare year-to-date actuals with your budget. Are you over or under in key areas?
Catch Up on A/R & A/P ա Follow up on overdue invoices. Pay outstanding bills on time to keep vendor relationships strong.
Assess Payroll & Tax Liabilities ա Are your payroll taxes current? Any quarterly estimated tax payments due?
Plan for Equipment or Major Purchases ա Mid-year is a great time to plan before year-end rush spending.

For eCommerce Businesses

Mid-Year Tip:

Reminder: Payment processors like Stripe, Shopify, and

PayPal will issue 1099՞K forms if you exceed thresholds —

be sure your gross sales match!

For Landscapers & Lawn Care Pros

Mid-Year Tip:

Summer is peak season — make sure you’re billing on time!

Bonus: If you hire seasonal help, keep W՞9s and payroll records
organized now to avoid tax headaches later.

DON’T FORGET - INDUSTRY CHECK՞IN CALLS

We love supporting our clients in every industry!

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

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Book Your Industry Check-In!

Client Q&A

Q: “How Often Should I Review My Financial Reports?”

A: We recommend reviewing your profit & loss, balance sheet, and cash flow at least monthly — and doing a deeper check each quarter. Consistent review helps you make timely decisions, spot errors, and avoid surprises.

Mid-Year Tax Advice: Stay Ahead & Save

The middle of the year is the best time to check in on your tax

strategy. A little planning now can save you big headaches (and

dollars) come filing time.

Mid-Year Tip:

Review Estimated Taxes: If you’re self-employed or own a small business, double-check your Q1 and Q2 estimated tax payments. Make adjustments now if you’re earning more (or less) than expected — avoid underpayment penalties!
Maximize Deductions: Keep good records for mileage, home office expenses, business travel, and supplies. Every deductible dollar reduces your taxable income.
Track Depreciation: Did you buy new equipment, vehicles, or office furniture? Make sure big-ticket purchases are properly tracked for Section 179 deductions or bonus depreciation.
Retirement Contributions: Consider contributing to a SEP IRA, Solo 401(k), or other qualified plan. This lowers taxable income and boosts your retirement savings.
Payroll & Contractor Compliance: Make sure all W-2 and 1099 workers are correctly classified. Misclassification penalties are hefty — better to fix any issues now.
Keep Business & Personal Separate: This is non-negotiable. If you haven’t opened a separate business account yet — do it this month. It protects your deductions and reduces audit risk.

Pro Tip:

Big changes this year — like adding new services, hiring employees, or expanding locations — can have tax impacts. Let’s plan for them now!

IRS Updates: Stay Compliant

The IRS has announced new thresholds for reporting certain transactions for small businesses.

Reminder: If you use third-party apps (like Venmo, PayPal, or Cash App) for business payments, be sure to track transactions properly — new 1099՞K rules apply for payments over $5,000/year in some states. Always keep personal and business accounts separate!

Smart Money Moves for Q3

Review subscriptions and recurring expenses.
Automate savings for taxes.
Schedule your Q3 strategy session with us — we can help you
plan tax-saving moves well before the year-end rush.

For Aestheticians & Beauty Professionals

Mid-Year Tip:

Review your product inventory! Expired or slow-moving retail stock ties up cash flow.
Run an inventory count — consider bundling slow sellers as summer promotions.
Track tips properly — remember tips are taxable income and should be recorded in your books.
Review booth rental agreements or commission structures.
Does your compensation plan need tweaks to stay competitive and profitable?

For Chiropractors & Physical Therapists

Mid-Year Tip:

Stay on top of insurance reimbursements and patient co-pays.
Reconcile your accounts receivable weekly — follow up on aging claims.
Evaluate your service mix — are there services with better margins you could promote more?
Keep your continuing education expenses documented — these may be deductible.

Pro Tip: If you’re planning to expand or hire associates,

this is the time to plan cash flow and structure.

For Chiropractors & Physical Therapists

Mid-Year Tip:

Summer is your busiest time — make sure your cash flow stays strong.
Review your recurring service agreements. Are all customers up to date on payments?
Track chemical and supply costs — these fluctuate seasonally and should be reflected accurately in your pricing.
Keep mileage logs for your service routes — vehicle expenses are one of your biggest deductions!

Pro Tip: Consider offering prepaid seasonal packages

to improve cash flow and reduce no-shows.

For Construction Industry Contractors

Mid-Year Tip:

Reconcile all job deposits, progress payments, and retainage accounts — incomplete tracking is a common issue that eats into profits.
Compare your estimated vs. actual costs for ongoing jobs — are you staying on budget?
Keep subcontractor W՞9s on file and issue 1099s properly — penalties for misclassification are high.
If you use QuickBooks or other job costing software, review open jobs to ensure expenses and time are allocated correctly.

Pro Tip: Mid-year is a smart time to review insurance

certificates, licenses, and bonding — keep them

current to avoid project delays.

Ready for a Tax Check-In?

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

Book your mid-year tax review with us today.

Let’s Talk!

Need help with your mid-year review?

Book your complimentary check-in session with your dedicated bookkeeper today.

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Helpful Resource

Check out our free Financial Health Checklist — reply to this email or visit our website to download yours!

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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Bookkeeping Newsletter

MID YEAR BOOKKEEPING TIPS

For eCommerce Businesses

For Landscapers & Lawn Care Pros

DON’T FORGET - INDUSTRY CHECK՞IN CALLS

Client Q&A

IRS Updates: Stay Compliant

For Aestheticians & Beauty Professionals

For Chiropractors & Physical Therapists

For Chiropractors & Physical Therapists

For Construction Industry Contractors

Let’s Talk!

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