I’ve spent 50 years in business, more than 40 of them running this firm, much of that stretch alongside my son. In that time, I’ve sat across the table from many owners who built a business of value and then encountered a problem they never planned for: handing off a life’s work in a condition the next generation can continue building value. The company took decades of decisions to build. Handing it to someone else happens over a far shorter time period and determines whether the business will continue to prosper. Most owners give that window a fraction of the planning they gave the years leading up to it. 

This gap in planning is rarely about commitment. The business became ingrained in the owner’s life.  Moreover, the owner spent years as the person everyone counted on so stepping back is personal before it’s financial. 

Every business changes hands eventually, through a sale, a planned succession, or a shutting of its doors. The owner who plans for it is able to decide the successor, the timing, the price, and the tax treatment. Those same four decisions still get made when there’s no plan, by a buyer negotiating from strength, a lender protecting its position, or a family member who had no preparation for the job. 

Define what “next generation” actually means for you 

“Next generation” is a phrase people use without deciding what they mean by it. As the owner, you must make a decisionbefore anyone can help you get there. The realistic paths are: 

Passing the business to family. This is often the emotional default and usually the most complicated to execute. It requires separating ownership from management, because the child who wants the business and the child equipped to run it are frequently two different people. It also raises questions you can’t defer: how children outside the business are treated now and in your estate, whether the transfer happens by gift, sale, or a combination, and what valuation you can support if the IRS asks. 

Selling to key employees. This protects culture and continuity better than any other path. The constraint is capital. Employees who have worked for you even if it’s over many years rarely have the cash to buy you out, so these deals get financed through seller notes, staged equity purchases, earnouts, or an ESOP. That means you’re carrying risk after you stop working, and the price has to reflect the reality of the risk associated with who’s paying it. 

Bringing in a partner. This gives you capital, a second decision maker, a phased exit, and a co-owner with a vote on decisions you used to make alone. Governance terms, deadlock provisions, and buyout mechanics need to be settled while everyone still likes each other. 

Selling to an outside buyer. This typically produces the highest price and the most rigorous buyer diligence. A strategic buyer in your industry pays for capability and market position. A financial buyer pays for earnings and the predictability of those earnings. Either way, your staff will feel the change more than in any internal transition. 

None of these operations is inherently correct. Each one can result in a different tax outcome, a different timeline, and a different level of disruption for the people who helped you build the company. The choice needs to be made deliberately, because leaving it open means it gets decided by circumstance. 

Make the business run without you before you leave 

If the business depends on you to make every major decision, maintain every key relationship, and solve every escalated problem, it isn’t ready to transfer. Buyers and successors are both buying future cash flow, and future cash flow that requires you is worth less to everyone who isn’t you. 

There’s a straightforward test. Take 30 consecutive days away from the business without checking in. What breaks tells you which functions are held personally by you and which are held by the institution. 

The transitions that work well are the ones where the owner spent years building four things: 

• Leadership depth below the owner. More than one person who can make a decision worth six figures without calling you. 

• Documented systems and processes. The knowledge that lives in your head has no value in a transaction until someone else can execute it. 

• Reliable financial reporting. Monthly, on a consistent basis, closed within a predictable window. 

• Customer relationships that don’t require you in the room. Concentration risk applies to relationships as much as to revenue. If your top five accounts renew because of you personally, that’s a discount to your valuation. 

A business that only works with one specific person in the chair transfers at a discount, assuming it transfers at all. For the company to last, it has to be bigger than any one person, including you. 

Build the leaders before you need them 

Leadership depth matters on all four paths. In a family transition or an employee buyout, the successor comes from inside the business. In an outside sale, the management team is a large share of what the buyer is paying for, and the buyer will expect the team to stay after closing. People who came up inside the company understand how the work actually gets done, they’ve earned credibility with the staff, and they’ve accumulated enough repetitions to handle situations that don’t appear in any manual. 

You can’t announce that someone is ready and expect the readiness to follow. A title confers authority on the org chart, and it should confirm a capability the person already demonstrated over years of decisions. Preparation means giving people real decision-making authority now, letting them own the outcomes now, and letting them learn the business the way an owner learns it. An owner learns how a given function affects cash, risk, and the workload of everyone else in the building, which is a wider view than any single role requires on its own. 

That means letting them sit in on the hard conversations, including the ones about money. It means letting them make a call you would have made differently and holding them accountable for what happens next. It also means aligning compensation so the people you’re counting on have a financial reason to stay past the closing. Buyers ask about management retention early, and “they’ll probably stay” carries no weight in diligence. 

Clean up the numbers well before you need them to be clean 

In my experience, the most common cause of a reduced valuation is unclear financial statements, much more so than market conditions or negotiating skill. 

Whether the buyer is your daughter, your operations manager, or a private equity group in another state, every transition needs the same foundation: 

• Accurate financials prepared on a consistent basis, with revenue recognized the same way every period. 

• Documented add-backs. Personal expenses run through the business are normal in a closely held company. They are also the fastest way to lose credibility if you try to reconstruct them from memory three years later. Document them as they occur. 

• Consistent reporting month over month, so a buyer can see the trend across periods. 

• A real view of cash flow, including working capital requirements, seasonality, and how much cash the business actually needs to operate.Buyers discount uncertainty. Every question your financials can’t answer becomes a downward adjustment to price or an item held back in escrow. Two to three years of clean, statements before you go to market will move the final number more than any negotiating tactic. 

Clean books also earn their keep long before any transaction. Good decisions come from good numbers, and the reporting discipline you build for a future buyer pays for itself.

A succession plan has to be papered 

The plan has to be papered to reflect the future state of the business accurately. 

Whether you’re transitioning in two years or ten, you need clarity in writing on: 

• Who leads. The operational successor and the scope of their authority. 

• Who owns. Ownership and management are separate questions, particularly in family businesses. 

• How the buyout works. Price or valuation formula, payment terms, interest rate on any seller financing, and security for what you’re owed. 

• What happens if something unexpected occurs. Death, disability, divorce, and departure all need triggering provisions. Buy-sell agreements funded with life and disability insurance exist for this reason. 

• How the deal is taxed. The structure of a sale, asset sale versus stock sale, changes what you keep by a meaningful margin. That decision belongs in the planning phase. 

Plans change. Yours will. The first version still matters, because you can’t improve a document that doesn’t exist. Revising a plan you already have is a routine exercise that takes an afternoon with your advisors. Drafting one from scratch during a health crisis compresses years of decisions into a matter of days. 

Start while you still have choices 

Start while you still have energy, leverage, and options. Owners who begin after exhaustion sets in, or after an unsolicited offer lands on the desk, negotiate from a weak positionand on somebody else’s timeline. 

The sequencing matters. Cleaning up financial reporting takes a couple of years. Developing a successor takes longer. Family transitions take the longest of all, because they involve conversations that have nothing to do with the balance sheet and everything to do with family. 

Succession planning is a strategy for protecting what you built, taking care of the people who helped you build it, and maybe setting up the next generation to succeed at something you spent a career proving is possible. 

If you’d like a sounding board, we’re glad to help you map out the steps for a smooth transition. 

The post Passing the Torch: How to Prepare Your Business for the Next Generation first appeared on Burke CPAs & Advisors.

As the summer is in full swing, you’ve probably moved on from “tax season” and shifted your attention back to work, family, travel, and everything else competing for time. And that’s understandable. Taxes are rarely something you want to think about in the heat of the summer.

But from a planning standpoint, this is one of the best times to take a quick tax checkup. A small review now can help prevent the kinds of surprises that show up later in the year when you have fewer options to fix them.

And this isn’t just for business owners. We see midyear planning make a difference for:

• Individuals and families
• High earners and retirees
• Taxpayers with investments
• People with side income or multiple jobs
• Business owners and self-employed professionals

In short: if your income, your life, or your finances have changed at all this year, it’s worth taking a look.

Here’s what we recommend reviewing in July to stay on track through the rest of 2026.

Why Midyear Tax Planning Matters (for Everyone)

By midyear, you have enough real financial information to work with. You’re not guessing anymore and you can see what income looks like, what taxes have been withheld, and what trends are developing.

At the same time, there’s still plenty of runway left in the year. That’s what makes July so valuable. If something needs to be adjusted, you can actually do something about it through updating withholding, increasing estimated payments, changing savings strategies, or simply planning cash flow more intentionally.

Think of it like a midyear financial tune-up: small adjustments now often prevent bigger corrections later.

1) Start With a Simple Year-to-Date Review

You don’t need a full financial analysis to benefit from a midyear checkup. Most people can learn a lot just by reviewing what the first half of the year really looked like.

For individuals, that might include:

• Year-to-date wages and withholding
• Bonuses, commissions, or incentive pay
• Investment income or capital gains activity
• Retirement distributions
• Major life changes that impact taxes

For businesses or self-employed taxpayers, it might include:

• Year-to-date income and expenses
• Profitability compared to last year
• Payroll and contractor costs
• Cash flow trends

The goal is simply to spot whether your 2026 tax situation is shaping up as “normal” or significantly different than last year.

2) Check Your Withholding and Estimated Payments

This is one of the most important midyear steps and one of the most overlooked.

If you’re a W-2 employee, withholding typically happens automatically, but it isn’t always perfect. It can fall short when someone has:

• Multiple jobs
• A spouse with income
• Investment income
• Bonuses or commissions
• A new job midyear
• Side income

If you’re self-employed, a business owner, retired, or you earn income that doesn’t have taxes withheld, you may rely on quarterly estimated payments. In those cases, midyear is the time to ask: Are my payments actually keeping pace with my income this year?

Catching an underpayment early helps reduce the chance of penalties and helps avoid the “surprise balance due” at tax time.

3) Watch for “Tax Trigger” Events You Might Not Think About

Many tax surprises happen because something changed during the year and nobody realized it had tax impact at the time.

Some common examples include:

• Selling investments (even if you reinvested the money)
• Moving to a new state
• Starting a side business or contract work
• Taking money from retirement accounts
• Receiving a bonus, severance, or large raise
• Buying or selling a home
• Beginning to rent out a property
• Major medical expenses or insurance changes
• An inheritance or large gift

None of these things are inherently negative but they can quickly change your tax picture. Midyear is a good time to identify what has already happened and factor it into the rest of the year.

4) Plan Ahead for Big Purchases and Financial Decisions

The second half of the year is often when people make bigger financial moves such as upgrading vehicles, investing in home improvements, purchasing equipment, or expanding a business.

From a tax standpoint, timing can matter, and documentation can matter even more. A midyear checkup helps you think through:

• Are there deductions or credits available for what you’re planning?
• Does it make sense to do it in 2026 or wait until 2027?
• Do you need to set aside extra cash for tax impact?

Even when a purchase is deductible, it doesn’t always mean it’s the best move for your overall cash flow. Tax planning should support the decision not drive it blindly.

5) Don’t Miss Opportunities With Retirement and Savings

Midyear is also a great time to take stock of retirement contributions and savings goals.

For individuals, this might include:

• Checking progress toward 401(k) or IRA contribution goals
• Reviewing employer match opportunities
• Evaluating Roth vs. pre-tax contributions

For self-employed individuals and business owners, the opportunities can be broader—but they also require more planning and coordination.

The key advantage of reviewing this in July is flexibility. If you wait until December, your options may be limited. If you plan now, you can spread out contributions and avoid cash crunch decisions.

6) Make Sure Your Records Are In Good Shape

This step isn’t glamorous, but it’s one of the best ways to reduce stress and prevent tax filing issues later.

A few things we recommend checking midyear:

• Are receipts and records easy to find?
• Are you separating personal and business spending appropriately?
• Do you have documentation for charitable contributions or major deductions?
• If you have a side business, are you tracking income and expenses consistently?

Organized records don’t just make filing easier but can help you plan more accurately and reduce your exposure if questions come up later.

The Best Tax Season Is the One You Don’t Feel

A midyear tax checkup isn’t about finding problems. It’s about staying in control.

When you check in midyear, you can make small adjustments that prevent bigger issues later like unexpected balances due, missed deductions, or avoidable penalties. It’s the difference between reacting in April and planning in real time.

If you’d like help reviewing your midyear tax picture, our team can walk through your year-to-date numbers and help you make a clear plan for the rest of 2026.

The post Your Midyear Tax Checkup: How to Stay on Track and Avoid Surprises first appeared on Burke CPAs & Advisors.

You’ve proven the model and the demand is there. You’ve outgrown your space, your systems, or even your leadership bench. You’re ready for the “next phase” of growth but growth takes capital, and capital decisions have consequences. 

I work with many of our clients engaged in acquiring or selling businesses, so I’ve had the unique privilege of seeing this from both sides of the table. Business owners often start the conversation by asking, “What’s the cheapest way to finance this?” But in practice, the better question is: What’s the smartest way to finance growth while protecting cash flow and minimizing tax friction? 

The raw truth is that the funding strategy you choose doesn’t just affect interest rates but generally affects your tax bill, exit options, and the value buyers will place on your business down the road. 

Here are a few tax-smart ways to think about financing growth without overcomplicating it. 

Start With This: Your “Capital Stack” Is a Strategy, Not Just a Spreadsheet 

In the context of mergers and acquisitions, we talk a lot about the capital stack by focusing on how a business is funded through some combination of operating cash flow, debt, equity, seller financing in acquisitions, earnouts or contingent payments, and hybrid financing instruments 

You don’t have to be doing a merger or acquisition to benefit from thinking this way. Even “simple” growth projects are easier to fund when you step back and design the right mix. 

That mix should balance three things: 

1. How quickly you need cash 

2. What your business can safely support 

3. How the funding affects taxes now and later 

Option 1: Use Internal Cash Flow (But Don’t Starve the Business) 

The most overlooked funding source is often the one business owners already have: their own cash flow. 

Funding growth internally tends to be clean and simple. No lender covenants. No new owners. No dilution. And from a tax perspective, you’re not creating a new layer of complexity. 

That said, this strategy only works if you’re incredibly disciplined. I’ve seen owners reinvest aggressively and accidentally create cash flow stress that forces a “panic loan” later, usually with worse terms and putting them in a weaker negotiating position. 

If you’re funding growth internally, the tax-smart move is making sure your forecasting is realistic and that you’re not underestimating things like: 

• hiring ramp-up costs 

• timing gaps between spending and revenue 

• inventory and working capital needs 

• equipment and implementation delays 

Sometimes the best answer is internal cash flow plus a modest line of credit as a backstop rather than swinging between extremes. 

Option 2: Traditional Debt (And Why the Tax Treatment Matters) 

Debt is still one of the most common growth tools for a reason. It can be efficient, scalable, and relatively predictable. 

From a tax standpoint, business owners often like debt because interest expense may be deductible depending on how the financing is structured and the specific limitations that apply to the business. 

But this is where “tax-smart” becomes more than a buzzword. 

Not all debt is created equal, and the documentation matters. The way the loan is classified, the interest terms, and even how the funds are used can affect everything from deductibility to audit risk. 

The bigger consideration I raise with owners is this: debt can help you grow, but it also changes your risk profile. If you’re building toward an eventual sale, lenders may have different expectations than a future buyer. Buyers like leverage when it’s controlled. They get uncomfortable when it’s tight, restrictive, or inconsistent with the business’s cash flow. 

This doesn’t mean “avoid debt.” It means use debt intentionally and make sure it aligns with the business you’re trying to build. 

Option 3: Equipment Financing and Leasing (Great for the Right Type of Expansion) 

If your growth plan includes significant equipment purchases such as vehicles, manufacturing tools, technology infrastructure, or specialized hardware, equipment financing can be an underrated option. 

The appeal is straightforward: 

• it often preserves working capital, 

• it ties payments to an asset with a measurable useful life, 

• and it may unlock advantageous tax treatment depending on eligibility. 

In many cases, depreciation strategies can reduce taxable income in the early years of an investment which could help offset the cost of growth. 

This is one area where business owners should be careful not to focus only on the deduction. The tax benefit is real, but so is the long-term cost if you buy equipment that doesn’t generate a return or creates operational overhead. 

Still, when used well, this can be one of the cleanest “tax-smart” ways to fund the next phase. 

Option 4: Bringing in an Equity Partner (The Tax Cost Is Only Part of the Story) 

Bringing in equity from private investors, private equity, family offices, or minority partners can provide fuel for a major growth push. 

But equity is where I see owners underestimate the “real” cost. 

Yes, equity may reduce immediate debt pressure. But equity comes with: 

• shared control and governance, 

• profit-sharing expectations, 

• more formal reporting requirements, 

• and a much more complicated exit conversation later. 

Equity partners can be a great fit if the business needs outside expertise, professionalization, or acquisition capital but I would note how dramatically it can change future transactions and potentially reduce your negotiating leverage. 

The tax component is important, but with equity, the strategic component matters even more. 

Option 5: Acquisition Financing (If Growth Means Buying Another Business) 

Some of the most successful growth stories I’ve seen come through acquisition. 

Buying another business can allow you to acquire: 

• customers and contracts 

• employees and capabilities 

• systems and infrastructure 

• geographic footprint 

• or a complementary product line 

But acquisition funding often looks different than funding organic growth. 

It may involve: 

• senior bank debt, 

• seller financing, 

• earnouts tied to performance, 

• rollover equity, 

• or a combination of all of the above. 

Tax planning is critical here because deal structure impacts: 

• purchase price allocation, 

• after-tax cash flow, 

• deductible amortization and depreciation, 

• and potentially how future exit proceeds are taxed. 

In other words: an acquisition can accelerate growth, but only if the deal is structured to support the business financially after closing. 

Questions I Ask Business Owners Before They Choose a Funding Strategy 

If we were sitting down together, these are the questions I’d want to cover: 

• What exactly are you funding: growth, stability, or both? 

• Is the goal to increase revenue, margin, or market position? 

• How predictable is your cash flow over the next 12–24 months? 

• Are you funding working capital, equipment, hiring, or M&A? 

• What does “success” look like? Higher profit, lifestyle flexibility, eventual exit? 

• How will this funding choice affect future sale or succession options? 

This is where having both tax and transaction experience matters. Financing can’t be evaluated in a vacuum. If you’re building a business with an eventual sale in mind, your growth funding decisions today will influence your valuation later. 

Fund Growth Like You’re Building an Asset, Not Just a Business 

Most business owners don’t wake up excited to talk about capital structure. But the ones who treat financing as part of the overall growth strategy tend to make better decisions and create more enterprise value over time. 

If you’re looking at your next phase of growth and weighing funding options, we can help you model the cash flow impact, evaluate tax consequences, and structure the decision in a way that supports both the business you’re running today and the business you may want to sell tomorrow. 

The post Funding the Next Phase: Tax-Smart Ways to Finance Your Business Growth  first appeared on Burke CPAs & Advisors.

If you sponsor a retirement plan for your employees, or you’ve been thinking about starting one, there’s a good chance you’ve heard the phrase “SECURE 2.0” more times than you can count. It’s one of those laws that brought a lot of change to the retirement plan world, and it can feel like there’s always another update, another deadline, or another new requirement to keep up with.

One of the biggest changes business owners should pay attention to is auto-enrollment. And while the rules may not be hitting every employer overnight, this is absolutely one of those topics that is worth dealing with before you get deep into the second half of the year.

As the leader for our Third-Party Administrator (TPA) practice within Burke CPAs and Advisors, we see the same cycle play out every year: employers want to do the right thing, but retirement plan compliance gets pushed down the list until the year-end crunch hits. Midyear is the perfect time to get ahead of it while you still have time to make decisions calmly, coordinate with payroll, and communicate changes to employees without rushing.

What auto-enrollment actually means

Auto-enrollment is exactly what it sounds like. Instead of employees having to take action to enroll in the company retirement plan, the plan automatically enrolls them at a default contribution rate. Employees can still opt out if they want, but participation becomes the default.

In many plans, auto-enrollment is paired with auto-escalation, in which contribution rates gradually increase over time unless the employee decides otherwise. That structure helps employees build better retirement savings without needing to make a bunch of decisions right away.

From an employer’s standpoint, it can be a great feature when it’s set up correctly. It can also create confusion if it’s rolled out quickly or without the right coordination behind the scenes.

How SECURE 2.0 changed the conversation

SECURE 2.0 was designed to increase retirement plan participation nationwide, and auto-enrollment is one of the main ways it does so. For many newly established 401(k) and 403(b) plans, auto-enrollment will become a required feature with certain exceptions depending on employer size, business age, and other factors.

This is where business owners sometimes get tripped up. They hear “mandatory auto-enrollment” and assume it applies to every retirement plan immediately. In reality, a lot depends on when the plan was established, what type of plan it is, and whether an exemption applies.

That’s why we recommend checking your plan status sooner rather than later—because you don’t want to find out late in the year that you’re behind on something you could have handled months earlier with far less disruption.

Why midyear matters more than most think

The reason we encourage employers to talk about this before midyear is simple: even small plan design updates take time.

Auto-enrollment isn’t just a box you check. It raises real decisions that affect both your employees and your budget. For example, what should the default deferral percentage be? How quickly should it increase over time, if at all? When should new hires be enrolled? How does this impact your matching contributions?

Those are business decisions worth careful thought.

And then there’s payroll. Almost every operational issue we see comes back to payroll setup. Even if the plan document is perfect, it doesn’t matter if deductions aren’t happening correctly, opt-outs aren’t being tracked, or contribution files aren’t mapping cleanly to the recordkeeper. When payroll isn’t aligned, the plan can quickly fall out of compliance, and fixing mistakes after the fact is almost always more expensive than preventing them.

The other piece employers sometimes overlook is communication. Auto-enrollment is generally positive, but employees don’t like surprises on their paycheck. A smooth rollout includes a clear explanation of what’s changing, their options, and how they can make adjustments if the default isn’t right for them.

What business owners should do now

If you already have a retirement plan in place, midyear is a great time to pause and ask a few practical questions. Are you confident that your plan’s provisions still align with how payroll is operating? If you recently hired employees, are they being added to the plan correctly and on time? If auto-enrollment becomes part of your plan design now or later, is your payroll provider ready to handle it without manual workarounds?

If you’re considering starting a retirement plan, this is also an important time to ensure the plan you put in place will work long-term, beyond this year.

As a TPA, we’re not just looking at whether your plan “has the right language.” We’re looking at how the plan operates in real life, whether the processes are sustainable, and whether you’re set up to avoid common correction issues.

In closing

Auto-enrollment is becoming a bigger part of retirement plans, and SECURE 2.0 is accelerating that shift. For employers, the best approach is proactive planning. This will save you from scrambling later to meet a requirement, fix payroll issues, or explain unexpected deductions to employees.

If you handle it early, auto-enrollment can potentially improve your plan’s participation and help employees save more consistently, without creating stress for your team.

If you’d like, we can help you review your current plan, confirm whether SECURE 2.0 auto-enrollment rules apply to your situation, and map out a practical implementation plan so you can move into the second half of the year with confidence.

The post Auto-Enrollment and SECURE 2.0: What Business Owners Should Do Before Midyear first appeared on Burke CPAs & Advisors.

Every tax season, we see the same trend: most filing issues aren’t caused by complicated tax law. They come from small, preventable mistakes. Unfortunately, small mistakes can lead to big inconveniences, such as delayed refunds, IRS letters, amended returns, or extra time spent tracking down documents after the fact.

Here are the filing mistakes we see most often, ranked in the order that tends to cause the biggest problems for taxpayers.

1) Filing Before You Have Every Tax Document

One of the fastest ways to create a tax headache is filing “as soon as possible” before all tax forms are in.

It’s common to receive tax documents in waves throughout the season, especially if you have investments, retirement income, side income, or multiple accounts. Filing too early can mean you unintentionally leave something out, and then you’re dealing with IRS mismatches or having to amend your return later.

What to do instead:
Wait until you’re confident you have everything, including any corrected forms that might be issued.

2) Missing Income (or Entering the Wrong Amount)

The IRS matches the income reported on your tax return to the income reported by employers, banks, brokerages, and other payers. If the numbers don’t match, returns can get delayed or flagged for follow-up.

Common items that get overlooked include:

• interest and dividends
• stock sales
• 1099 work or side income
• retirement distributions
• unemployment income

What to do instead:
Use a complete checklist of forms and verify each amount before filing.

3) Choosing the Wrong Filing Status

Filing status impacts your tax rate, standard deduction, and eligibility for certain credits. Selecting the wrong one can create both tax calculation issues and compliance problems.

This often comes up when someone is:

• Newly married
• Separated or divorced
• Supporting children or other dependents
• Unsure whether they qualify as Head of Household

What to do instead:
Double-check your filing status rules before filing, especially if your household changed during the year.

4) Mistakes With Credits and Deductions

Credits and deductions can be some of the most valuable parts of a tax return, but they’re also where errors happen most frequently.

We commonly see issues with:

• Child Tax Credit
• Child and Dependent Care Credit
• Earned Income Tax Credit
• Education-related tax benefits

Sometimes taxpayers miss these entirely. Other times, they claim them incorrectly, and the return gets delayed while the IRS requests additional support.

What to do instead:
Make sure you understand what you qualify for and keep documentation in case the IRS asks questions later.

5) Using the Wrong Bank Account Information for Your Refund

Direct deposit is the fastest way to receive a refund, but it’s only fast if the bank information is correct.

One wrong digit in an account number can delay your refund significantly or send it to the wrong place.

What to do instead:
Confirm the routing and account numbers directly with your bank or on a check, not from memory.

6) Social Security Number Errors

Social Security numbers have to match exactly for you, your spouse, and any dependents. Even a small typo can create processing issues.

What to do instead:
Verify Social Security numbers against official records before filing.

7) Name Mismatches (Especially After Marriage or a Life Change)

Names on the tax return must match the records tied to the Social Security numbers. If a name has changed due to marriage, divorce, or another life event but the Social Security Administration has not been updated, your return may be delayed.

What to do instead:
If your name has changed, confirm your Social Security record is updated before filing.

8) Math Errors and Simple Data Entry Problems

Even though most people use tax software today, we still see errors caused by incorrect input, especially when information is manually entered or transferred.

What to do instead:
Electronic filing and reputable tax software reduce these issues, but the best protection is a careful review before hitting submit.

9) Forgetting Signatures or Required Authorizations

An unsigned return is not valid, and for joint returns, both spouses must sign.

What to do instead:
If e-filing, complete the signature step carefully. If paper filing, confirm signatures are included before mailing.

10) Working With the Wrong Tax Preparer

This may not be a “tax form error,” but it’s one of the most costly issues we see.

There are preparers who promise large refunds, charge hidden fees, or file returns without asking the right questions. Even if someone else prepares your tax return, you’re still responsible for what’s submitted.

What to do instead:
Work with a trusted preparer (CPA, enrolled agent, or another qualified professional) who will explain your return, confirm details, and support you if questions come up later.

Final Thought: A Clean Return Saves You Time, Money, and Stress

Most tax issues can be avoided by doing two things:

1. Slow down and gather everything before you file.
2. Review your return like it matters… because it does matter.

If you’re not sure whether you have the right documents, the right filing status, or the best strategy for your situation, working with professionals like our advisors here at Burke can make the process far smoother and help you avoid costly surprises later.

The post Avoid These Common Tax Filing Mistakes Before You Hit Submit first appeared on Burke CPAs & Advisors.

If your business accepts credit or debit cards, whether in person, online, or through a mobile device, payment security rules apply to you. Over the last several years, PCI Compliance standards have evolved in ways that affect not only IT, but also operations, management, and the vendors that support your payment systems.

Two PCI standards are especially relevant for most businesses that accept card payments:

• PCI DSS 4.0: the rules for how your business protects card data across your people, processes, and systems.
• PCI PTS POI: security standards for the payment devices themselves, such as the terminals and PIN entry devices where customers tap, dip, or enter a PIN.

These standards address different parts of the payment ecosystem and are designed to complement each other. One is about your overall environment. The other is about the hardware at the counter (or in the field, or in an ATM).

Here’s the practical, non-technical version of what’s changing and how to stay ahead.

First: A “PCI-Compliant Terminal” Doesn’t Make Your Business Compliant

A secure, certified terminal is a great start, but it’s only one piece of the puzzle.

Think of it like installing a high-quality lock on your front door. It helps. But if your windows are open, your alarm is off, and everyone shares the same key… You still have risk.

That helps illustrate how the two standards relate to each other:

• PCI PTS POI helps ensure your terminal hardware is built to resist tampering.
• PCI DSS 4.0 is about how your business operates: your network, access, policies, vendor relationships, and how you prove controls are working.

What’s New With PCI DSS 4.0 (The “How You Run Things” Standard)

PCI DSS 4.0 has been rolling out in phases, and the direction is clear: payment security is shifting toward more continuous monitoring and clearer accountability.

In practice, that means:

• More ongoing validation that security controls are in place and working. Instead of doing a one-time compliance effort each year, companies are expected to show that safeguards are consistently in place.
• Clear ownership. Businesses need to be able to answer, “Who is responsible for this?” for key security steps, not just “I.T.”
• Extra attention on online checkouts. If you take payments online, there’s increased focus on protecting the checkout experience from hidden changes, including third-party scripts and add-ons.
• Greater oversight of third-party service providers. Your payment processor, POS provider, gateway, e-commerce platform, and other vendors can affect your compliance and your risk. PCI compliance increasingly requires coordination between businesses and the vendors that support their payment environment.

Many of the requirements that were initially optional became mandatory after March 31, 2025, meaning 2026 is the year many businesses feel the operational impact.

What’s New With PCI PTS POI (The “Terminal Hardware” Standard)

PCI PTS POI is the standard used to evaluate the security of payment devices such as payment terminals and PIN entry devices.

The big takeaway: these devices have their own lifecycle and deadlines.

Right now, the industry is moving from older “v5” devices to newer “v6” (and now v7) devices. You don’t need to know the technical differences—but you do need to know that older device versions eventually reach a point where they can’t be newly deployed.

A key date to be aware of is April 30, 2027, which is the extended expiration date for PCI PTS POI v5-approved devices. After that point, organizations should expect to rely on newer device versions such as v6 or v7.

Devices already in place may be able to stay in service. Still, organizations should plan for replacement and avoid last-minute scrambles—especially if you operate multiple locations or run a large device fleet.

What We Recommend: A Simple, Practical Plan

You don’t need a giant technical project to get moving. Most businesses do well with a structured, common-sense approach:

1) Take inventory. List your payment devices and their locations.

2) Ask the right vendor questions. For your terminals, POS provider, and processor:

• What device versions are we using today?
• What’s the replacement and support roadmap?
• How do firmware updates work?
• What should we plan for before 2027?

3) Tighten your “day-to-day” controls. Even basic improvements can help: access controls, training, vendor oversight, and documentation that demonstrates controls are being consistently followed.

4) Build a 12–24 month roadmap to prepare for upcoming device lifecycle deadlines. Be sure to plan upgrades and improvements in manageable phases.

The Bottom Line

Payment security is moving toward more continuous compliance, clearer accountability, and greater attention to the systems and vendors that support the payment process, not just the terminal itself.

The good news is that proactive planning usually costs less, disrupts operations less, and reduces risk far more effectively than reacting late.

If you have questions about payment security, vendor oversight, or how compliance requirements may affect your business, our team is here to help. Contact us to start the conversation.

The post What Your Business Needs to Know About PCI Compliance in 2026 first appeared on Burke CPAs & Advisors.

This year, as individuals and business owners prepare their returns, there are several deductions worth revisiting. Missing even one could mean paying more than necessary.

1. The Home Office Deduction: A Modern Essential

Remote and hybrid work arrangements have expanded dramatically. Yet the “home office deduction” remains one of the most misunderstood and underutilized tax savings opportunities.

You may qualify if you meet both of the following:

• You use part of your home regularly and exclusively for business.
• Your home is your principal place of business.

Even freelancers and side hustlers can claim this deduction, which includes a portion of rent, mortgage interest, utilities, repairs, and insurance. For many taxpayers, this can amount to hundreds or even thousands of dollars in savings.

2. State and Local Tax (SALT) Deductions You May Be Missing

Most people know about the SALT deduction cap—but fewer realize how many expenses qualify within it. Beyond state income tax, you can include:

• Local income taxes
• Real estate taxes
• Personal property taxes

If you own a business, operate in multiple jurisdictions, or recently purchased property, there may be overlooked opportunities buried within your payments.

Our state and local tax specialists routinely uncover missed deductions related to multi-state operations, personal property filings, and local assessments.

3. Out-of-Pocket Charitable Contributions

Large donations are commonly reported, but small, everyday acts of generosity are often forgotten. These may include:

• Supplies purchased for nonprofit volunteer work
• Travel expenses for charitable service
• Charitable mileage (at the IRS-allowed rate)

Even small amounts add up, and documentation is key. With the right paper trail, these often-overlooked contributions can deliver meaningful savings.

4. Self-Employment and Side-Hustle Deductions

With the rise of gig work and digital entrepreneurship, many individuals now qualify for deductions that traditional employees do not:

• Home office expenses
• Internet and phone usage
• Software subscriptions
• Marketing costs
• Vehicle mileage
• Professional fees (including your CPA)

If you earned 1099 income, sold goods online, or provided freelance services—even occasionally—you may be leaving money on the table. Our team frequently helps side-hustlers identify legitimate deductions while avoiding audit-triggering missteps.

5. Depreciation Benefits and Cost Segregation for Property Owners

Real estate owners often overlook accelerated depreciation, particularly if they purchased or improved property in the last few years.

A cost segregation study breaks down building components to shorten their depreciable life, resulting in significantly reduced taxable income. This can create substantial cash-flow advantages, especially for:

• Investors
• Medical practices
• Manufacturers
• Hospitality businesses
• Office and retail owners

Qualified improvements made during the year may also be eligible for bonus depreciation or Section 179 expensing.

Burke’s cost segregation specialists help clients unlock these benefits with IRS-backed methodologies.

Preparing for Tax Season with Confidence

Tax return preparation isn’t just about compliance. It’s about strategy. The proper guidance can turn a stressful annual obligation into an opportunity for meaningful savings and better long-term planning.

At Burke CPA and Advisors, we help individuals, families, and businesses identify overlooked deductions, leverage credits, and navigate complex tax rules with confidence. Whether your goal is to maximize your refund, reduce liabilities, or plan for next year, our advisors are here to help you achieve it.

The post Five Overlooked Deductions That Could Save You Thousands This Tax Season first appeared on Burke CPAs & Advisors.

As 2026 approaches, with shifting tax guidance, evolving state rules, and a growing emphasis on strategic financial planning, business owners need clarity more than ever. At Burke CPA & Advisors, we’ve spent decades helping entrepreneurs build strong economic foundations that support long-term success. Whether you’re launching a startup, expanding operations, or preparing for future growth, the proper structure is the cornerstone of financial stability and opportunity.

Why Your Business Structure Matters More in 2026

The economic and regulatory landscape continues to evolve, with business owners facing increasing complexity in tax law, reporting requirements, and compliance oversight.

Selecting the correct business structure offers advantages such as:

• Tax efficiency and flexibility
• Protection for your personal assets
• Simplified or enhanced governance requirements
• Greater opportunities for funding or investor interest
• Long-term scalability and succession potential

Business owners who make informed choices set themselves up for improved financial wellness; those who don’t may face unnecessary tax burdens, liability exposure, or operational inefficiencies.

At Burke CPAs & Advisors, we regularly help clients evaluate structure options based on liability exposure, tax planning opportunities, and long-term strategic goals.

A Breakdown of the Most Common Business Structures

1. Sole Proprietorship

The simplest and most common structure in the U.S., ideal for low-risk, owner-operated businesses.

Pros:

• Minimal setup
• Full owner control
• Pass-through taxation

Cons:

• No liability protection
• Harder to raise capital
• Subject to self-employment taxes

While 73% of U.S. businesses fall into this category, it’s best suited for those prioritizing simplicity over growth.

2. Partnerships (LP & LLP)

Partnerships enable two or more individuals to share profits, responsibilities, and decision-making authority.

Pros:

• Flexible management
• Easy to form
• Ability to combine resources and talent

Cons:

• General partners face personal liability
• Potential partner disputes
• Must carefully structure roles and responsibilities

Partnerships often serve as transitional structures for groups testing ideas before forming an LLC or corporation.

3. Limited Liability Company (LLC)

A hybrid structure offering liability protection with pass-through taxation.

Pros:

• Liability protection for all members
• Flexible management
• Avoids double taxation

Cons:

• Potential higher self-employment taxes
• Varies significantly by state
• Requires ongoing compliance

For many small to mid-sized businesses, an LLC provides the best balance between flexibility and legal protection.

4. S Corporation (S Corp)

Ideal for businesses wanting liability protection plus the tax benefits of a pass-through entity.

Pros:

• Avoids double taxation
• Reduces self-employment tax burden
• Strong liability protection

Cons:

• Must follow strict IRS and state guidelines
• Limited to 100 shareholders
• Only one class of stock allowed

S Corps are a popular choice for small to medium-sized employers planning steady growth and seeking tax efficiency.

5. C Corporation (C Corp)

A more formal structure suited for companies with plans to scale or seek investors.

Pros:

• Strong liability protection
• Unlimited shareholders
• Attractive to investors and venture capital
• Ability to retain earnings

Cons:

• Double taxation (corporate + dividends)
• More regulatory formalities
• Requires careful governance

C Corps are often the right choice for businesses that prioritize long-term growth and strong investor relationships.

6. Cooperatives (Co-ops)

Member-owned and operated, built on shared benefit and democratic governance.

Pros:

• Shared risk
• Member-driven decision-making
• Focus on community or mission-based impact

Cons:

• Harder to raise capital
• Decision-making can be slow or complex

Co-ops are ideal for groups that prioritize equality and shared benefits over hierarchical control.

How to Choose the Best Structure for Your Business in 2026

1. Assess Your Liability Exposure

If you operate in a high-risk industry or handle significant financial or legal obligations, strong liability protection (such as an LLC, S Corp, or C Corp) may be essential.

2. Understand Your Tax Strategy

Effective tax planning is crucial for achieving long-term success. Our team helps clients determine whether pass-through taxation or corporate taxation better aligns with their goals.

3. Consider Your Growth and Capital Needs

Businesses expecting to scale rapidly or attract outside investors may need a corporate structure to support future expansion.

4. Think About Your Long-Term Vision

Your structure should support not only today’s goals but your eventual exit or succession plan. Burke’s succession planning advisors help ensure your structure aligns with the business you want in 5, 10, or 20 years.

Burke’s Advisory Advantage: Guidance at Every Stage

From choosing your initial structure to refining it as your business grows, Burke CPAs & Advisors offer comprehensive support through:

• Tax Structuring & Planning
• Business Startup Consulting
• Succession Planning & Exit Strategy
• Valuation, Transaction, and Capital Advisory

No two businesses are alike, and neither are our strategies. We evaluate your unique situation and craft a plan tailored to your risk profile, tax landscape, and long-term financial wellness goals.

Ready to Choose the Right Structure? We’re Here to Help.

The proper business structure does more than protect assets – it supports growth, enhances tax efficiency, and lays a foundation for long-term financial stability.

If you’re launching a business, restructuring, or planning for 2026, our team of strategic advisors is ready to guide you every step of the way.

Let’s build a business structure designed to help you grow and prosper.

The post Setting Up for Success: How to Choose the Right Business Structure in 2026 first appeared on Burke CPAs & Advisors.

The 2025 tax year brought significant adjustments that affected individuals, business owners, and growing organizations alike. From evolving federal regulations to state-level incentives and changes stemming from past legislation like the SECURE 2.0 Act, taxpayers faced a landscape that was both challenging and full of opportunity.

At Burke CPAs & Advisors, we’ve spent the past year helping clients anticipate these changes, reduce their tax burden, and build long-term strategies aligned with growth. As we look back at the key updates of 2025—and ahead to what 2026 may bring—our goal remains the same: to keep you informed, prepared, and empowered to make confident decisions.

Key Federal Tax Changes Impacting 2025 Filings

1. Inflation-Adjusted Thresholds and Brackets

Each year, inflation adjustments affect standard deductions, tax brackets, and various credits. In 2025, many thresholds rose again, offering modest relief to individuals and families navigating higher prices. These changes impact decisions around income timing, charitable giving, and business deductions.

2. Impacts From SECURE 2.0 Still Taking Effect

While major components of the SECURE 2.0 Act rolled out in 2024, 2025 marked the first year that many small and mid-sized businesses fully felt the effects—especially around retirement plan administration.

Most notable for 2025:

• Automatic enrollment requirements will begin to apply to newly created retirement plans starting in 2025.
• Businesses with fewer than 10 employees or those in operation for less than three years are exempt.
• Eligible small businesses may receive up to $500 per year in tax credits for implementing auto-enrollment.

If you’re planning to launch a new plan, the administrative and planning steps are essential. Burke Advisors help clients streamline the compliance process and maximize available incentives.

3. Continued Growth of the Self-Employment and Side-Hustle Economy

The IRS continued to expand guidance on digital payments, Form 1099-K thresholds, and reporting requirements for freelance and gig-based income. For the millions of Americans with a side income, tax responsibilities have become both more precise and more complex.

Common concerns this year included:

• When income is considered from self-employment
• How to track cash, PayPal, and app-based earnings
• What expenses qualify for deductions
• Whether quarterly taxes are required

Burke CPAs worked with an increased number of side-hustle and gig-economy clients to help them avoid over- or under-paying taxes and to maximize allowable deductions.

State & Local Updates: Opportunities Many Businesses Missed

1. Growing Availability of State-Level Incentives

States continued using tax incentives to support small businesses—especially those investing in technology, equipment, and workforce expansion.

For example, Kentucky offered tax credits ranging from $3,500 to $25,000 for small businesses with 50 or fewer full-time employees that hired at least one new employee and invested over $5,000 in qualifying assets.

2. Increased Scrutiny on Compliance and Security

Although not a tax law, PCI compliance continues to play a significant role in business risk management and audit readiness, particularly for businesses that handle credit card data.

For our clients, 2025 brought:

• Increased auditor attention on data security controls
• More frequent inquiries about third-party payment processors
• Higher penalties for non-compliance

Because breaches can lead to financial losses, chargebacks, and reputational damage, maintaining compliance is part of a holistic financial risk strategy.

Business Tax Planning Themes That Defined 2025

1. Entity Structure Re-Evaluation

As tax rules shift, many business owners revisited their corporate structure to improve liability protection, meet growth goals, or reduce unnecessary taxes.

From sole proprietorships to LLCs to S Corps, choosing the right structure can influence:

• Tax liability
• Operational flexibility
• Long-term succession planning
• Eligibility for certain tax credits

Burke CPAs & Advisors continued guiding clients through these decisions using a long-term, strategy-first approach.

2. Cost Segregation and Asset-Based Tax Savings

Real estate investors and growing businesses leaned deeper into cost segregation strategies to accelerate depreciation and increase cash flow. As interest rates fluctuated throughout the year, these techniques helped offset overall operational costs.

3. Strategic Tax Credits & Incentives

From federal R&D credits to local hiring incentives, 2025 saw wider availability of credits that directly reduced tax liability for qualifying activities.

What’s Ahead in 2026: Key Areas to Watch

1. Possible Expiration of Key Tax Cuts

Several provisions from the 2017 Tax Cuts & Jobs Act are set to sunset after 2025 unless extended, potentially affecting:

• Individual tax brackets
• Standard deductions
• The Qualified Business Income (QBI) deduction
• Limits on certain itemized deductions

This could significantly change tax planning strategies for individuals and pass-through business owners.

2. Continued Enforcement Activity

The IRS is expected to maintain increased audit enforcement for high-income individuals, digital platform earners, and businesses with inconsistent reporting practices.

3. Ongoing Rollouts from SECURE 2.0

More provisions, including expanded catch-up contributions and Roth-related adjustments, may create new planning opportunities for both business owners and employees.

2025 Was a Year of Change, 2026 Will Be a Year for Strategy

The 2025 tax landscape presented new obligations but also meaningful opportunities for those prepared to take advantage of them. Whether you’re a business owner navigating growth, a side hustler building a new income stream, or an investor managing complex assets, strategic tax planning is more critical than ever.

At Burke CPAs & Advisors, we’re here to help you evaluate your situation, uncover hidden savings, and plan confidently for the year ahead.

Get Expert Guidance for 2026

If you want clarity around tax changes or want to build a forward-looking strategy that protects your income and positions you for growth, our advisors are ready to help.

The post 2025 Tax Review: What Changed & What Is Ahead first appeared on Burke CPAs & Advisors.

Founded in 2008 by Frank Schwartzel, Schwartzel & Co. has earned a strong reputation for providing high-quality accounting, tax, and advisory services to individuals and businesses throughout eastern Indiana. Schwartzel will relocate his operations to Burke’s Richmond, Indiana, office, where he and his clients will benefit from expanded resources and the firm’s collaborative, client-first culture.

“This merger represents a natural alignment of two firms that share the same values and dedication to client success,” said Pat Burke, Managing Partner of Burke CPAs & Advisors. “Frank and his team have built a strong reputation of integrity, professionalism, and personal client service. Together, we will continue to deliver the high-quality, relationship-based service that both firms are known for.”

Frank Schwartzel, President of Schwartzel & Co., LLC, added: “Joining Burke CPAs & Advisors allows us to expand our capabilities while maintaining the personal relationships that have always defined our firm. I’m excited to continue serving clients as a Senior Manager CPA, working closely with Anna K. May, CPA, Director of Tax Services in Richmond, to ensure a smooth transition for all our clients.”

“Joining Burke CPAs & Advisors provides tremendous opportunities for our clients,” said Schwartzel. “Our clients will benefit from the depth of Burke’s resources and expertise while continuing to receive the personalized attention they’ve come to expect.”

Schwartzel & Co., LLC Clients Will Benefit From:

• Expanded expertise and resources across a broader range of tax, accounting, and advisory services.
• Access to a larger team of experienced professionals with specialized knowledge in key industries.
• Enhanced technology and client service tools for more efficient communication and document management.
• Continued personal attention and trusted relationships, with the same familiar advisors clients know and rely on.
• Seamless service continuity, ensuring no disruption during the transition process.
• Access to Concentric Wealth Management, Burke’s full-service wealth advisory division, providing comprehensive financial planning, investment management, and retirement consulting services.

The combined firm will operate under the Burke CPAs & Advisors name, continuing to serve clients from its Richmond office and other regional locations.

About Burke CPAs & Advisors

Founded in 1984, Burke CPAs & Advisors is a full-service accounting and advisory firm dedicated to helping clients achieve financial success through proactive planning, innovative strategies, and personal attention. The firm provides comprehensive tax, audit, assurance, retirement plan design and administration, business consulting, and financial advisory services to individuals, businesses, and organizations throughout the region.

The post Burke CPAs & Advisors Acquisition of Schwartzel & Co. LLC first appeared on Burke CPAs & Advisors.