Tax Tips for Small Business Success in 2025

Tax Tips for Small Business Success in 2025

As we progress through 2025, small business owners face an increasingly complex tax landscape. With the potential sunset of the Tax Cuts and Jobs Act (TCJA) approaching at the end of the year, strategic tax planning has never been more important. At ANTM CPA Alliance, we've compiled these essential tax tips to help your business thrive while maximizing tax benefits.

Stay Ahead of 2025 Tax Law Changes

A major shift on the horizon is the sunset of the Tax Cuts and Jobs Act (TCJA) on December 31 of this year. This could significantly impact small businesses with potential changes including:

• Expiration of the 20% Qualified Business Income (QBI) deduction for pass-through entities
• Reversion to higher individual income tax rates
• Reduced bonus depreciation and limits on Section 179 expensing

The IRS has also announced inflation adjustments for tax year 2025, including increases to standard deductions and adjustments to tax brackets. For single taxpayers, the standard deduction rises to $15,000, while for married couples filing jointly, it increases to $30,000.

Maximize Business Tax Deductions

One of the most effective ways to reduce your taxable income is through legitimate business deductions. Small business owners should carefully track and document these common deductible expenses:

• Business equipment, software, and internet access
• Marketing, advertising, and certain insurance premiums
• Professional services like bookkeeping, legal advice, and financial advisory
• Home office expenses for remote work setups

For restaurant owners specifically, additional deductions may include:

• Food costs (ingredients, pre-packaged items, spices)
• Beverages (water, soda, alcoholic beverages)
• Kitchen appliances and eating supplies
• Employee salaries, benefits, and associated costs

Implement Smart Record-Keeping Practices

Creating an organized system for tracking revenue and expenses throughout the year will make tax season significantly less stressful. According to QuickBooks' Entrepreneurship in 2025 report, many business owners struggle with keeping track of documentation and expenses even though they feel confident filing taxes4.

Best practices include:

• Reconciling to source documents regularly
• Organizing your chart of accounts effectively
• Classifying your business correctly
• Separating personal and business accounts

Work with a Trusted Accounting Partner

Finding a reputable accountant who can serve as a strategic partner is invaluable. The right professional won't just prepare financial statements and submit your taxes – they'll provide ongoing guidance throughout the year to help you:

• Track revenue and expenses to avoid cash flow problems
• Identify all available tax credits and deductions
• Develop and adjust your tax strategy as needed
• Avoid potential pitfalls with the IRS

At ANTM CPA Alliance, we're committed to being that trusted partner for your business, providing expert solutions tailored to your specific needs.