J Allen & Associates

10/05/2026

𝗖𝗮𝗻 𝘆𝗼𝘂 𝗹𝗼𝘄𝗲𝗿 𝘆𝗼𝘂𝗿 𝘁𝗮𝘅𝗲𝘀 𝘄𝗶𝘁𝗵 𝗮 𝘀𝗲𝗹𝗳-𝗲𝗺𝗽𝗹𝗼𝘆𝗲𝗱 𝗿𝗲𝘁𝗶𝗿𝗲𝗺𝗲𝗻𝘁 𝗽𝗹𝗮𝗻?

Yes. Contributing pre-tax earnings to a Solo 401(k) or SEP IRA directly reduces your taxable income for the year.

Here's how those options compare:
• A Solo 401(k) lets you contribute as both employee 𝘢𝘯𝘥 employer. You can save a lot more, even if your profit is under $100,000.
• A SEP IRA is employer-funded only. It offers less contribution flexibility at lower income levels, but is easy to set up without much ongoing paperwork.

𝘐𝘮𝘱𝘰𝘳𝘵𝘢𝘯𝘵 𝘥𝘪𝘴𝘵𝘪𝘯𝘤𝘵𝘪𝘰𝘯: pre-tax retirement contributions can lower your federal and state income tax liability, but they don't reduce your 15.3% self-employment tax.

Unsure which plan gives you the biggest tax savings? Send us a message and we can help you calculate the best fit.

10/02/2026

𝗪𝗵𝗮𝘁 𝗰𝗮𝗻 𝗜 𝗱𝗲𝗱𝘂𝗰𝘁 𝗮𝘀 𝗮𝗻 𝗶𝗻𝗱𝗲𝗽𝗲𝗻𝗱𝗲𝗻𝘁 𝗰𝗼𝗻𝘁𝗿𝗮𝗰𝘁𝗼𝗿 𝘁𝗼 𝗹𝗼𝘄𝗲𝗿 𝗺𝘆 𝘁𝗮𝘅𝗮𝗯𝗹𝗲 𝗶𝗻𝗰𝗼𝗺𝗲?

You can deduct ordinary and necessary business expenses, which reduce your taxable net income dollar-for-dollar.

Some of the bigger deductions to check for include:
• Home office expenses
• Business mileage
• Self-employed health insurance premiums
• The business portion of your phone and internet
• Software, web hosting, cloud storage, and other business tools

But having the expense isn't always enough. You also need the records to back it up.

Vehicle mileage is a good example. An end-of-year estimate can put your entire mileage deduction at risk if you don't have a detailed log showing the dates, miles driven, and business purpose.

𝘋𝘰 𝘺𝘰𝘶 𝘬𝘦𝘦𝘱 𝘺𝘰𝘶𝘳 𝘦𝘹𝘱𝘦𝘯𝘴𝘦 𝘳𝘦𝘤𝘰𝘳𝘥𝘴 𝘢𝘴 𝘺𝘰𝘶 𝘨𝘰, 𝘰𝘳 𝘥𝘰 𝘺𝘰𝘶 𝘶𝘴𝘶𝘢𝘭𝘭𝘺 𝘩𝘢𝘷𝘦 𝘵𝘰 𝘳𝘦𝘤𝘰𝘯𝘴𝘵𝘳𝘶𝘤𝘵 𝘵𝘩𝘦𝘮 𝘢𝘵 𝘵𝘢𝘹 𝘵𝘪𝘮𝘦?

10/01/2026

𝗪𝗵𝗮𝘁 𝗰𝗮𝗻 𝗜 𝗱𝗼 𝘁𝗼 𝗺𝗮𝗸𝗲 𝗺𝗼𝗻𝗲𝘆 𝗳𝗲𝗲𝗹 𝗮 𝗹𝗶𝘁𝘁𝗹𝗲 𝗹𝗲𝘀𝘀 𝘁𝗶𝗴𝗵𝘁 𝗶𝗻 𝗺𝘆 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀?

If cash feels tight in your business, start by collecting money that's already owed to you.

Here are three places you can start:
1. Audit monthly software and vendor subscriptions, and cancel whatever isn't bringing in revenue or saving time.
2. Send follow-ups on overdue invoices past 15 days (uncollected money is an interest-free loan you're giving away).
3. Offer an add-on service to active clients, which takes less effort than landing a new customer.

Cash flow problems are usually a system issue, not a personal failure.

Send us a DM if you want another set of eyes on your expenses and unpaid invoices.

10/01/2026

How To Fix Common QuickBooks Online Problems Frederick Small Business Owners Face

Staring at QuickBooks Online problems like phantom income or wrong categories? Here is how to spot software blind spots and clean up your ledger.

09/30/2026

𝗪𝗵𝗲𝗻 𝘀𝗵𝗼𝘂𝗹𝗱 𝗜 𝘀𝘁𝗮𝗿𝘁 𝗰𝗹𝗲𝗮𝗻𝗶𝗻𝗴 𝘂𝗽 𝗺𝘆 𝗽𝗮𝘆𝗿𝗼𝗹𝗹 𝗿𝗲𝗰𝗼𝗿𝗱𝘀 𝗳𝗼𝗿 𝘆𝗲𝗮𝗿-𝗲𝗻𝗱?

You should start reviewing your payroll records before Q3 closes so that you have time to catch problems while you can still address them.

A few things to check now:
1. Do your payroll reports match your general ledger?
2. Are any manual or voided checks creating discrepancies?
3. Do you have the right information on file for your contractors?
4. Are your payroll wage categories recorded correctly?

You have a three-month buffer to get those records cleaned up before December 31.

And if you want help reviewing the numbers, don’t hesitate to reach out (especially before Q4 gets too far along).

09/29/2026

It's easy to look at AI as the solution to your problems. But what it really does is magnify the problem areas that exist in your company already.

There are some key questions mentioned here that would be good for you to consider for your own business when incorporating AI.

https://www.inc.com/adam-povlitz/ai-wont-fix-a-business-that-wasnt-working-before-ai/91407235

09/29/2026

The Frederick Small Business Q3 Payroll Checklist for a Painless Year-End Close

Beat the holiday rush with this Q3 payroll checklist. Learn how to fix 2026 OBBBA tracking and ledger errors early for a stress-free year-end.

09/28/2026

𝗗𝗼𝗲𝘀 𝗶𝘁 𝗺𝗮𝘁𝘁𝗲𝗿 𝗵𝗼𝘄 𝗜 𝘀𝗲𝗻𝗱 𝗺𝘆 𝗰𝗵𝗶𝗹𝗱 𝗺𝗼𝗻𝗲𝘆 𝗳𝗼𝗿 𝗮 𝗵𝗼𝘂𝘀𝗲 𝗱𝗼𝘄𝗻 𝗽𝗮𝘆𝗺𝗲𝗻𝘁?

Yes, how you transfer the down payment matters because the IRS and mortgage underwriters may want a clear paper trail showing where the funds came from. Informal transfers can create red flags and even stall the mortgage process while the source of the money is verified.

That means the gift amount you report to the lender should match the amount that actually leaves your account and reaches your child.

For a cleaner paper trail:
• Use a traceable wire transfer or cashier's check
• Save the bank statement or transfer record that shows the money leaving your account
• Make sure the gift amount listed on the lender paperwork matches the amount you actually transferred
• Avoid unverified cash or unstructured peer-to-peer transfers

09/25/2026

https://www.wsj.com/business/autos/gm-to-produce-patriot-missile-parts-as-u-s-faces-critical-arms-shortage-c0f94101

If GM can turn assembly lines into missile production, you can definitely launch that new product line you've been putting off.

And just like GM, you can write off 100% of your new equipment in Year 1 using Section 179.

If you're adding a new revenue line before year-end and want guidance on how to structure it right, DM us.

09/24/2026

𝗗𝗼 𝗜 𝗵𝗮𝘃𝗲 𝘁𝗼 𝗺𝗮𝗸𝗲 𝗾𝘂𝗮𝗿𝘁𝗲𝗿𝗹𝘆 𝘁𝗮𝘅 𝗽𝗮𝘆𝗺𝗲𝗻𝘁𝘀 𝗻𝗼𝘄 𝘁𝗵𝗮𝘁 𝗜 𝗼𝘄𝗻 𝗮 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀?

Unless your business is a tax-exempt 501(c)(3) or you expect to owe under $1,000 in total tax, you are required to make quarterly estimated tax payments to the IRS.

This estimate covers income tax you'll owe as well as the 15.3% self-employment tax that you also must cover.

To stay ahead of your deadlines, open a separate tax savings account and automatically transfer 25% to 30% of your net profits into it.

That way, the money is already set aside when payment time comes.