Innovative Accounting Solutions LLC

07/14/2026

Increased Standard Mileage Rates Starting July 1, 2026

Due to higher fuel prices, the IRS has increased the standard mileage rate for business driving to 76 cents per mile for mileage incurred on or after July 1, 2026. The rates for medical travel and eligible moving expenses have also increased to 23.5 cents per mile.

The charitable mileage rate remains unchanged at 14 cents per mile, while the previously announced 2026 rates continue to apply to mileage incurred before July 1.

07/13/2026

One of the biggest misconceptions we hear from business owners is that if money leaves your bank account, it must be tax deductible.

Unfortunately, that's not always how the tax rules work.
Many of the tax questions we receive throughout the year come down to misunderstandings about what is—and isn't—a deductible business expense. Here are a few of the most common ones we see.

"If I use my vehicle for work, I can deduct the whole vehicle."

Not quite.
In most cases, only the business use of your vehicle is deductible. That means keeping track of your business mileage is incredibly important. Without knowing how many miles were driven for business versus personal use, it's difficult to accurately determine your deduction.

Waiting until tax season to estimate those miles often leads to inaccurate records and missed deductions. And yes, even if you dont take the mileage deduction for your vehicles, you should still be tracking business and personal miles.

"I made a big loan payment this year, so that should lower my taxes."

This surprises many business owners.

While making loan payments certainly affects your cash flow, the principal portion of a loan payment is not tax deductible. That's because you're simply paying back money you previously borrowed and you were not taxed on that money when you received the loan.

Sure, in many cases, the interest paid on a business loan is deductible, but repaying the principal is not.

This is one reason why taxable income and cash flow don't always move together. You may have less cash in the bank but still owe tax on your business profits.

"If I buy something for my business, it's automatically deductible."

Not necessarily.
Some purchases can be deducted immediately, while others must be depreciated over several years. The timing, type of asset, and how it's used all play a role in determining the tax treatment.

That's why it's often beneficial to discuss larger purchases before they're made rather than after the fact.

The tax code is full of rules like these that aren't always intuitive. Understanding them throughout the year can help you make better business decisions and avoid surprises when tax season arrives. The key? Cash Flow planning. What is your real cash flow? After tax?

It is about understanding how normal business decisions affect your taxes before you make them.

As always, please reach out to us with any questions you have about your situation by replying to this email or through our contact links.

All the best,

07/13/2026

07/13/2026

💰 Small Business Tax Tip of the Week: Is a SEP IRA Right for Your Business?

A SEP IRA is one of the simplest ways for small business owners to save for retirement while reducing taxable income.

Here are a few key benefits:

✅ Business contributions are generally tax-deductible.
✅ Easy to set up and administer.
✅ Flexible—you decide each year whether to contribute and how much (subject to IRS limits).
✅ Can be an excellent option for self-employed individuals and many small business owners.

Keep in mind: If you have eligible employees, you generally must contribute the same percentage of compensation for them as you contribute for yourself.

A SEP IRA can be a valuable tax planning tool, but the right retirement strategy depends on your business structure, income, and long-term goals.

Need help deciding whether a SEP IRA, Solo 401(k), or another retirement plan is best for your business?

📞 Innovative Accounting Solutions
🌐 www.innovativeaccountingpa.com
📱 570-686-0680

Plan ahead. Save on taxes. Build your future.

Welcome Welcome to our website! This website exists to provide clients and potential clients with information concerning our firm and our unique, low-pressure approach to personal and professional services. We have an excellent client-retention rate, and we are extremely proud of the high-quality se...

07/11/2026

💼 Pennsylvania Sales Tax: Don’t Let It Become an Expensive Mistake

Many Pennsylvania small business owners don’t realize that sales tax is money you collect on behalf of the state—it isn’t your business income.

Unfortunately, we often see businesses run into trouble by:
✔️ Collecting sales tax but forgetting to file returns.
✔️ Missing filing deadlines.
✔️ Charging the wrong tax rate.
✔️ Not understanding which products or services are taxable.
✔️ Falling behind and facing penalties, interest, and collection actions from the Pennsylvania Department of Revenue.

If your business sells taxable goods or services, staying compliant is just as important as paying your income taxes.

At Innovative Accounting Solutions, we can help you:
✅ Register for Pennsylvania sales tax.
✅ Determine if your products or services are taxable.
✅ Prepare and file your sales tax returns accurately and on time.
✅ Resolve past-due filings and notices.
✅ Stay compliant so you can focus on running your business.

Don’t wait until you receive a notice from the state. A proactive approach can save you time, money, and unnecessary stress.

📞 If you have questions about Pennsylvania sales tax or need help getting caught up, contact Innovative Accounting Solutions. We’re here to help your business stay compliant and grow with confidence.

07/09/2026

📊 Small Business Tax Tip: It’s Time for a Mid-Year Tax Checkup

We’re halfway through the year, which makes now the perfect time to review your business finances—not wait until tax season.

A mid-year tax planning meeting can help you:
✅ Estimate your tax liability before year-end.
✅ Maximize deductions while there’s still time to act.
✅ Review payroll and owner compensation.
✅ Ensure you’re making the right estimated tax payments.
✅ Identify tax-saving opportunities before December 31.

The businesses that pay the least in taxes don’t wait until tax season—they plan throughout the year.

At Innovative Accounting Solutions, we help small business owners make proactive tax decisions that can save money and eliminate surprises.

📞 Schedule your mid-year tax planning session today and finish the year with confidence.
🌐

Welcome Welcome to our website! This website exists to provide clients and potential clients with information concerning our firm and our unique, low-pressure approach to personal and professional services. We have an excellent client-retention rate, and we are extremely proud of the high-quality se...

07/08/2026

📌 Two Essential Services. One Trusted Team.

At Innovative Accounting Solutions, we’re here to make running your business—and handling life’s important paperwork—easier.

💼 Payroll Services
✔ Accurate payroll processing
✔ Payroll tax filings
✔ Direct deposit
✔ W-2 & 1099 preparation
✔ Reliable, on-time service

🖋 Notary Services
Need important documents notarized? We offer fast, professional, and convenient notary services for individuals and businesses.

Whether you need dependable payroll support or a trusted notary, we’re ready to help.

📞 Call us today: 570-686-0680
🌐

Welcome Welcome to our website! This website exists to provide clients and potential clients with information concerning our firm and our unique, low-pressure approach to personal and professional services. We have an excellent client-retention rate, and we are extremely proud of the high-quality se...

07/06/2026

Employer-Provided Childcare Tax Credit – Did You Know?

Businesses that offer childcare benefits to employees may qualify for the Employer-Provided Childcare Tax Credit for some of the expenses involved. Eligible costs may include acquiring, constructing, or improving a childcare facility, operating an on-site childcare program, contracting with a qualified childcare provider, or paying for childcare resource and referral services.

Beginning in 2026, the credit generally equals 40% of qualified childcare expenditures (or 50% for eligible small businesses) plus 10% of qualified childcare resource and referral expenses. The maximum annual credit has also increased to $500,000, or $600,000 for eligible small businesses.

07/06/2026

We hope you had a great Fourth of July and were able to enjoy some well-deserved time with family and friends. But just like that, The 4th is behind us, we're officially in the second half of the year. For business owners, that means there is still plenty of time to influence your 2026 tax outcome—but the window to take advantage of certain strategies is beginning to get smaller.

One of the biggest misconceptions we see is that people think filing a tax return and tax planning are the same thing. While they work together, they serve two very different purposes.

Tax Filing/Preparation is looking backward.
It involves organizing your records, preparing your tax return, and accurately reporting what already happened.

Tax Planning is looking forward.
It focuses on helping you make informed decisions throughout the year that can reduce taxes before the year is over.

Some examples include:
Reviewing your year-to-date profit and projected taxable income
Determining whether estimated tax payments need to be adjusted
Evaluating whether asset purchases make financial and tax sense
Reviewing payroll and owner compensation
Making sure retirement contributions and other tax-saving opportunities aren't missed
Identifying potential issues before they become expensive surprises

These conversations are difficult—if not impossible—to have after the year has already ended.

Many business owners assume they'll "figure it out at tax time," but by then, many of the best planning opportunities have already passed.

That doesn't mean your current CPA isn't doing a good job preparing your return. Many tax professionals are excellent at compliance and reporting. However, ongoing planning requires a different level of communication, forecasting, and strategic review throughout the year.

The most proactive business owners don't wait until tax season to think about taxes. They review where they stand during the year, ask questions before making major financial decisions, and adjust their strategy as circumstances change.

Now that we're entering the second half of the year, this is an excellent time to evaluate whether you're on track—or whether a few proactive adjustments today could make a meaningful difference by year-end.