Bible Harris Smith, P.C.

10/30/2026

A thoughtful client gift can still be a smart business move. Just do not assume the full receipt becomes a full deduction.

For federal tax purposes, business gifts are generally limited to a $25 deduction per recipient. That means a $100 gift basket may be appreciated, while only part of its cost reduces taxable income. ([irs.gov](https://www.irs.gov/publications/p463?ref=ambrook&utm_source=openai))

Keep the receipt, note who received it, and record the business purpose while the details are easy to verify.

Small documentation habits can prevent a generous gesture from becoming a surprise at tax time.

Do you prefer giving individual client gifts or sending something the whole office can enjoy?

10/23/2026

It is easy to see a credit card payment leave the bank account and call it an expense again.

The expense was usually recorded when the card was charged. The payment should reduce the card balance, not add another expense to the books.

That small mix-up can make profit look lower than it really is. It can also send tax planning and cash decisions in the wrong direction.

A quick credit card reconciliation helps catch it before the records get harder to untangle.

Have you ever found a transaction that was recorded twice?

10/23/2026

Collect W-9s when a vendor is added, not after payments begin.

A missing form can slow 1099 preparation and create avoidable record cleanup.

https://www.bhspc.com

10/23/2026

A professional truth people avoid saying: customer deposits can make a bank balance look healthier than the business really is.

A deposit is cash received. It is not automatically operating profit.

If your business still owes labor, materials, or a completed service, that money belongs in a liability account until the work is earned. Recording it as revenue too early can overstate margins and lead to spending cash that must still cover the job.

Clear bookkeeping separates incoming deposits from earned income. That gives Knoxville business owners a more honest view of profit, open obligations, and cash available for payroll or expenses.

Bible Harris Smith helps businesses maintain financial records that support better decisions.

How are customer deposits reflected in your monthly profit reports?

10/16/2026

Depreciation looks great on paper until you need actual payroll cash on a Friday afternoon.

Writing off capital assets reduces taxable net income, but accounting write-downs never put dollars back into your operating account. Relying strictly on taxable profit instead of cash margins leaves you unprepared when seasonal supplier invoices arrive.

Real financial control comes from tracking ledger cash separately from paper allowances. Clear bookkeeping keeps balance sheet reserves solid while making sure every legitimate deduction is secured ahead of year-end deadlines.

Bible Harris Smith provides clear accounting and tax advisory across Knoxville, Maryville, and Oak Ridge.

How do you separate paper write-offs from daily reserve planning in your business?

10/15/2026

Calculating state franchise tax by looking at your physical property values is no longer the right move. The state pulled that old property base off the table, which means your calculation rests directly on how you figure net worth.

If your team is running the math the way you always have, you risk paying more than you owe or filing numbers the state will question. Taking a few minutes to review your balance sheet under the revised rules saves a lot of headaches later.

Drop a comment if you have taken a look at how this shift affects your bottom line yet.

Learn how recent state statutory updates change your Tennessee franchise tax net worth calculations and help you file an accurate business tax return.

10/09/2026

Checking your bank balance is not the same as knowing your actual profit.

Money in the account looks reassuring until quarterly taxes, unbilled expenses, or payroll liabilities catch up with you. That gap between cash on hand and true net income catches a lot of folks off guard every autumn.

Sitting down with your ledger before the year closes out gives you a realistic picture. You see what you actually owe, what you can safely spend, and where your margins stand.

Do you rely mostly on cash flow reports or your full balance sheet when making major business choices?

10/06/2026

We are looking for a tax preparer with some experience. You could also have some opportunity to work in the fields of attestation and/or client advisory services. We do work some extra during busy season, and we balance that well the rest of the year. We believe in managed flexibility to ensure the work is being done properly, while also ensuring our employees are not over-worked. If you or someone you know are interested, please send a resume to [email protected], and we will be in touch soon after the October 15th deadline.

10/02/2026

Fourth quarter surprises cost real money.

A lot of business owners wait until spring to find out how much profit they actually made. By then, every single move you could have made to manage your tax bill is locked down; the calendar turned, and the window shut.

Taking an afternoon to review your financial statements before the year winds down changes everything. You catch unexpected revenue spikes early, write off what makes sense, and plan your cash reserves instead of scrambling to pay an estimated tax shock in April.

Do you usually sit down with your books before the year closes out, or do you prefer to handle it all at tax time?