Most business owners know the three classic pillars of client acquisition: outreach, advertising, and word of mouth. They matter (and they work), but they aren’t the whole picture. As accountants who work closely with small businesses, we regularly see companies limit their potential by assuming client acquisition is only about “getting your name out there.” In reality, sustainable growth comes from building multiple channels that work together, quietly and consistently. Here are additional, highly effective ways to acquire new clients.

1. Build Strategic Partnerships (Your Most Underused Channel)

Partnerships are one of the highest-ROI acquisition channels, and most small business owners rarely utilize them. Think: professionals who share your target audience but don’t compete with you.

For a real estate, this might include:

• roofing contractors
• window replacement companies
• HVAC repair & installation
• landscaping companies

For SaaS or tech companies, this might include:

• project management software
• subscription billing platforms
• cybersecurity firms
• CRM consultants

Why it works:
These professionals already have business owners’ trust. When they recommend you, clients approach you pre-vetted, making the sales process much shorter and conversion rates much higher.

How to do it:

• Attend industry events or local chamber meetups
• Host joint webinars or workshops
• Share resources with partners (guides, checklist PDFs, “tax season reminders,” etc.)
• Offer referral agreements if appropriate

2. Create “Evergreen” Digital Assets That Bring Clients to You

Ads require ongoing spend. Evergreen content is an asset that works indefinitely. For example:

• Blog articles answering common pain points
• Guides or downloadable checklists
• Short videos explaining common myths
• Case studies showing how you solved real problems
• Industry-specific content

This type of content positions you as the expert before the client ever contacts you.

Why this works:
People search for very specific questions when they’re confused or stressed. If your content gives them clarity, you win their trust—and often their business.

3. Local Presence & Community Authority

Even in the digital age, local visibility matters enormously. So how do you build local authority?

• Optimized Google Business Profile (posts, photos, Q&A, etc.)
• Sponsoring community events
• Teaching at local co-working spaces
• Participating in podcasts or short talks at business meetups

This builds name recognition and demonstrates you’re invested in the local small business ecosystem.

4. Client Experience as a Marketing Channel

Beyond word of mouth, client experience itself is a powerful acquisition engine. It’s not just “doing good work,” it’s creating a system where clients feel cared for, informed, and supported.

Examples:

• Automated reminders/newsletters
• Easy onboarding
• Fast response times

When the process is smooth, clients don’t just recommend you—they advocate for you.

5. Niche Specialization (Your Secret Weapon)

Generalists face tough competition. Specialists attract higher-quality leads. Specialization allows you to:

• Command higher rates
• Deliver deeper value
• Create niche-specific content
• Get more targeted referrals
• Stand out instantly

When you’re the expert for your specific type of client, you don’t compete, you attract.

6. Retargeting & Nurture Campaigns

Not every potential client signs immediately. Many need nurturing. Implementation options:

• Newsletters
• Retargeting ads to website visitors
• Follow-up reminders before important deadlines
• Industry-specific guides sent via email

This keeps you top-of-mind without being pushy.

7. Upgrading Your Website & Conversion Flow

Small business websites often leak leads—because they lack clarity and quick paths to action. Worry less about a highly optimized site and worry more about making an effective website. Include:

• clear services
• Pricing clarity (at least ranges or packages)
• Simple CTA buttons
• Testimonials or client quotes

Final Thoughts

Client acquisition is not about one magic tactic—it’s about building several channels that reinforce each other. For small businesses, the most effective growth comes from:

• Relationships
• Expertise
• Clear communication
• Visible value
• Predictable client experience

Outreach, ads, and word of mouth are only the beginning. Building a multifaceted strategy gives you resilience, consistent growth, and the ability to serve clients who genuinely need what you offer.

If you approach marketing like building a portfolio—diversified, steady, long-term—you’ll create a client acquisition system that grows your business year after year.

The post How Small Businesses Can Acquire New Clients appeared first on Huddleston Tax CPAs | Accounting Firm In Seattle.

Why It’s Usually Disallowed for W-2 Employees

Before 2018, unreimbursed employee expenses (such as using your cell phone or paying for home internet for work) could potentially be deducted as a “miscellaneous itemized deduction” subject to a 2% of AGI floor. But the Tax Cuts and Jobs Act (TCJA) changed that. Starting with tax years 2018 through at least 2025, that class of deductions is suspended.

What that means is even though you may incur those phone or internet costs for your job, those expenses typically can’t reduce your federal taxable income if you’re a W2 employee. The law removed most “unreimbursed employee business expenses” from being deductible for those who aren’t in certain narrow categories.

So unless you fall into a special category (for example, some state or local officials, certain performing artists, or certain other qualified employees), the deduction isn’t allowed federally.

Are There Requirements to Reimburse in Washington State?

Some states have laws requiring employers to reimburse employees for necessary business expenses, including remote work costs or job-required tools/phones. Washington and Seattle are among jurisdictions that do have some requirements or protections in this area.

The city of Seattle, in particular, has a wage-theft ordinance that calls for reimbursing employees for necessary business expenses incurred.

However, Washington state law does not broadly require private employers to reimburse all business expenses (like your personal phone bill) under all circumstances.

For state employees, there is a statute that requires reimbursement for mileage when using a private vehicle for official state business. (RCW 43.03.060)

That said, employers often still choose to reimburse or subsidize remote work expenses or phone/internet costs to retain employees or for fairness, especially in remote & hybrid environments.

So bottom line: it’s not guaranteed by state law in Washington that private employers must reimburse you for your phone or internet, but in Seattle there is local protection, and your employer may choose or be required by local ordinance to cover necessary work costs.

How the TCJA Plays Into This

The Tax Cuts and Jobs Act is central to this question. Because of TCJA:

• The miscellaneous itemized deductions category (which included unreimbursed employee expenses) is suspended for tax years 2018–2025.
• That means those expenses, even if legitimate business costs, generally no longer reduce your taxable income if you’re a W2 employee.
• The TCJA also increased the standard deduction significantly, which means fewer taxpayers itemize (further reducing the utility of itemized deductions).

Because of these changes, most employees today must rely on their employer to reimburse job-related costs, rather than claiming them on their taxes.

What You Should Do (and Ask Your Employer)

1. Check your company’s reimbursement policy
   Find out whether your employer already has a policy for reimbursing job-required phone or internet usage. If the cost is material, it’s reasonable to ask.
2. Document your usage
   If you’re asked to use your personal phone or service for work, maintain logs showing minutes, data usage, or portion devoted to work vs personal. This supports your case if seeking reimbursement or negotiating.
3. Negotiate a stipend or cost-sharing
   Many employers now offer monthly stipends or reimbursements for remote work needs. It’s not guaranteed, but if they require you to invest personal resources, it’s fair to approach this topic.
4. Plan for 2026 changes
   Currently, the suspension of miscellaneous deductions is scheduled to last through 2025. If the tax law changes afterward, these deductions might return (though that’s uncertain).
5. Consult HR or a legal advisor
   If your work situation has nuances (you’re remote, required to use private tools, etc.), HR or legal counsel may clarify whether local rules apply or whether you have standing for reimbursement.

Final Thoughts

Many employees still wonder whether they can deduct their cell phone or home internet when required by their job. The reality now is that for most W2 employees, federal law (thanks to TCJA) prohibits that deduction for tax years 2018–2025. That makes employer reimbursement (or stipend) even more important.

In Washington/Seattle specifically, the law does provide some local protections (especially in Seattle), but it’s not a blanket requirement for every employer. If your employer is asking you to use personal resources for work, it’s reasonable to ask for compensation or partial reimbursement (especially given the legal changes on the deduction side).

The post Can a W2 Employee Deduct Phone & Internet Because of Job Requirements? appeared first on Huddleston Tax CPAs | Accounting Firm In Seattle.

Here’s how to understand those roadblocks, reframe your approach, and boost your odds of success.

Why So Many Small Businesses Hit Roadblocks

There’s two main reasons:

1. Strict underwriting criteria

Banks and lenders typically expect established track records, strong credit, consistent cash flow, and collateral. This is why many business owners are denied a loan because their business was too new or didn’t meet revenue thresholds.

2. SBA myth versus reality

Many small business owners assume that the Small Business Administration (SBA) will be their safety net when banks turn them down — but that’s not quite how it works.

The SBA doesn’t lend money directly to businesses. Instead, it partners with banks, credit unions, and specialized lenders, providing a government-backed guarantee on a portion of the loan. This guarantee reduces the lender’s risk, making it more likely they’ll say “yes” to small businesses that don’t meet traditional lending criteria.

However, while SBA loans are often more accessible than conventional business loans, they’re not quick or simple to get. The process can be slow and documentation-heavy, involving layers of financial statements, tax returns, business plans, personal financial disclosures, and sometimes even collateral appraisals.

Some entrepreneurs describe it as “a full-time job just applying for it.” The typical SBA loan timeline ranges from 30 to 90 days, depending on the lender, your business complexity, and the loan type. Even after approval, it can take weeks before funds are released.

Additionally, while the SBA backs part of the loan, you’re still on the hook for repayment. Lenders will often require personal guarantees, meaning your personal assets could be at risk if your business defaults.

That said, when approved, SBA loans can be one of the most cost-effective funding options available — offering lower interest rates and longer repayment terms than most alternatives.

What You Can Do Differently (And Better)

If you’ve been knocked back once or twice, take these strategic steps to improve your odds next time:

1. Tell the full financial story, not just numbers

Many lenders dismiss applications that look flat or incomplete. Use projections, narrative context, and growth plans.

2. Build stronger leverage before applying

Things that help include:

• A solid 6–12 months of bank statements showing consistent revenue
• Reducing unnecessary expenses to improve margin
• Establishing a separate business bank account
• Building or repairing personal credit

3. Start with smaller, safer credit tools

If a full loan fails, go for a line of credit or a credit card you can responsibly manage — small successes build confidence with lenders. Business owners often advise starting small with a line of credit.

4. Approach multiple lenders in parallel

Don’t rely on one bank. Talk to credit unions, local banks, SBA lenders, fintech or online platforms, community development funds, and peer networks. Your success might come from unexpected places.

5. Prepare for time and friction

If you’re going the SBA route (or even bank loans), expect 30–90 days from application to funds. Delays are common and paperwork often pivots during underwriting.

What to Watch Out For (Pitfalls to Avoid)

• Predatory lenders with extremely high rates or hidden fees
• Overbidding your capacity — don’t borrow more than your business can reasonably repay
• Taking on debt for non-essential expenses because it compounds risk
• Failing to understand the terms — always read the fine print (collateral, late fees, covenants)

When to Bring in Professional Help

• If you’re repeatedly rejected but believe your business is fundamentally sound
• If you’re dealing with complex alternatives or bridging financing (e.g. factoring, revenue-based lenders)
• When structuring guarantees, interest, repayment schedules, or refinancing

A CPA or business finance advisor can help you model realistic repayment capacity, clean up financial statements, and package your application more compellingly.

It’s no mystery why so many small business owners feel treated like second-class citizens in the lending world. But giving up isn’t the answer. The difference comes from persistence, narrative clarity, and strategy, not just raw numbers.

Don’t let one denial define your path. Use it to recalibrate, strengthen your foundation, and come back with proof you belong in the lending game.

The post Tips to Improve Your Chance of a Small Business Loan appeared first on Huddleston Tax CPAs | Accounting Firm In Seattle.

That’s where NotebookLM can help especially if you’re the sole employee or an independent contractor. This AI-powered note-taking tool, lets you upload documents, spreadsheets, and PDFs, then ask questions directly about them, almost as if you had a personal financial assistant built into your workspace.

But here’s the key question: is it safe to use for financial data?

Let’s unpack what NotebookLM does, how to use it responsibly, and what types of financial information are okay (and not okay) to store in it.

What Makes NotebookLM Useful for Expense and Tax Tracking

NotebookLM is built for context-aware note-taking. Instead of manually searching through dozens of spreadsheets, you can upload your documents — like your 2024 expense tracker, mileage log, or invoices — and ask questions such as:

• “How much did I spend on advertising in Q2?”
• “Which clients paid me late last year?”
• “Did I make more in gross income this quarter than the last?”

You can also have it summarize your monthly financial performance, flag missing expense data, or generate insights based on your historical numbers.

For business owners who tend to fall behind on bookkeeping, it’s a convenient way to stay proactive — without needing to manually crunch numbers every week.

What Google Says About Data Privacy in NotebookLM

Google states clearly that NotebookLM does not use your uploaded data to train its AI models. That means when you upload receipts, spreadsheets, or business notes, that content stays within your account, i.e. it isn’t added to Google’s broader AI training datasets.

However, there are two important caveats:

1. Human review can happen if you submit feedback or if your content triggers an abuse or policy review.
2. Consumer accounts differ from Workspace accounts. If you’re using a personal Gmail account, Google’s standard consumer data handling applies. If you use NotebookLM through a Google Workspace (business) account, your data enjoys enterprise-grade privacy protections, meaning it’s not visible to Google reviewers or used for AI improvement.

In short: NotebookLM is safe for general financial summaries and note-taking, but avoid uploading personally identifiable client data (SSNs, account numbers, etc.) unless you’re on a Workspace plan.

How to Use NotebookLM Effectively (and Safely) for Taxes

Here’s a practical workflow for using NotebookLM without compromising sensitive information:

1. Create a “Financial Notes” Notebook

Upload your year-to-date expense summaries, mileage logs, and profit/loss reports — ideally exported from QuickBooks, Wave, or Excel.

2. Add a “Tax To-Do List” Section

Include reminders like quarterly tax due dates, W-9 requests, and deduction categories you want to track more closely this year.

3. Ask Questions Throughout the Year

You can query your Notebook for things like:

• “How much did I spend on meals and travel in 2024?”
• “What percentage of my expenses are home-office related?”
• “Which months did I fall behind on estimated tax payments?”

4. Protect Client or Employee Information

Never upload documents containing full tax IDs, social security numbers, or un-redacted payroll data. Instead, summarize the figures or anonymize data before upload.

5. Use NotebookLM as a Tax Advisor Companion

When your CPA requests specific information — like “total advertising spend” or “vehicle mileage” — NotebookLM can help you find it instantly.

Think of it as a pre-tax assistant that helps you stay ready for your accountant, not a replacement for professional tax guidance.

Why This Matters for Small Businesses in Washington State

In Washington, small businesses must manage state B&O (Business & Occupation) tax, sales tax, and sometimes city-level taxes. That adds up to a lot of moving pieces.

By using NotebookLM as your “financial journal,” you can easily:

• Track which cities you’ve collected sales tax for
• Keep notes on deductible expenses by client or project
• Store tax filing reminders from the Washington Department of Revenue

This keeps you organized, reduces stress, and ensures you’re prepared when quarterly or annual filings roll around.

Bottom Line: A Smarter, Safer Way to Stay Organized

NotebookLM is a powerful companion for small business owners who want to stay on top of finances without handing their data over to the cloud blindly.

While it’s not a replacement for your CPA or bookkeeping software, it’s an excellent middle ground to keep you abreast of what’s happening with your finances. A digital workspace where you can organize summaries, notes, and trends, then query them whenever you need insights.

Just remember: Keep sensitive identifiers out, use summaries instead of full records, and you’ll have a secure, AI-powered tool that keeps your finances in check year-round.

The post How to Use NotebookLM to Keep Track of Your Expenses and Taxes (Safely) appeared first on Huddleston Tax CPAs | Accounting Firm In Seattle.

Let’s unpack the difference and explore how to manage taxes more strategically.

Revenue vs. Profit: It Matters

The first big revelation comes from smart commenters explaining:

• Revenue (gross income) is the total amount you bring in, i.e. all the money from sales.
• Profit is what remains after subtracting business expenses from revenue.

If your LLC earned $36,000 in revenue and your expenses were $22,000, your taxable profit is only $14,000—not $36,000. So setting aside 43% of profit (≈$6,000) is very different from planning on 43% of total revenue (≈$15,000).

What Went Wrong?

What followed next made things clearer:

• The CPA likely meant “reserve 45% of profit” — not all revenue.
• A 45% tax rate on profit isn’t uncommon when combining federal, state, and self-employment taxes.
• But without clarity, this advice caused unnecessary alarm and financial strain.

Key Lessons and Best Practices

If you find yourself in the same spot, here’s how to correct course:

1. Clarify Terminology
Always double-check whether your advisor is referring to revenue, profit, or taxable income. A simple miscommunication can change everything.

2. Run Monthly Profit Forecasts
This helps you understand your net income over time — not just at year-end. It also ensures you’re saving appropriately and avoids surprises come tax season.

3. Keep Meticulous Expense Records
Equipment, mileage, travel — all add up. Document receipts and use the right categories so nothing slips through the cracks.

4. Reevaluate Your Tax Structure
An LLC taxed as an S-Corp may help reduce self-employment tax by enabling you to pay yourself a reasonable salary and take the remainder as distributions. However, S-Corp benefits often become worthwhile only when profit exceeds around $50,000 due to added administrative costs.

5. Work with a Proactive Tax Advisor
Your accountant should review your tax position quarterly, not just at year-end. If a tax-heavy return grosses you out, it may be time to look for someone who prioritizes planning and clarity year-round.

Final Takeaway

If you’ve been told to “reserve 45% of your income” for taxes, pause and ask: do you mean your profit or your total revenue?

Digging into your books, tracking your profit consistently, and planning ahead can help you keep more of what you’ve earned without compromising compliance.

The post Misunderstanding “Income” vs “Profit”: A Cautionary Tale for LLC Owners appeared first on Huddleston Tax CPAs | Accounting Firm In Seattle.

Take Gary’s Place, a local waterfront arcade: equipment prices have already risen 10–15% due to tariffs. To shield customers from higher costs, owners Elyssa and Matt Cichy are absorbing the increases themselves and paying for additional storage to stockpile inventory.

“The uncertainty of not knowing what is going to happen next is keeping us up at night and making this so stressful,” Elyssa said.

Seattle businesses are finding it increasingly difficult to compete for container cargo and maintain consistent inventory, and the impact is particularly felt among startups with tight budgets.

Actionable Tips for Seattle Small Businesses

While tariffs are largely outside your control, there are steps you can take to mitigate their impact and protect your bottom line:

1. Diversify Your Suppliers
Don’t rely solely on one country or manufacturer. Look for alternative suppliers in countries not affected by tariffs or explore domestic options. Diversifying your supply chain reduces vulnerability to sudden cost spikes.

2. Stockpile Strategically
If certain products are essential for your business, consider stockpiling ahead of expected tariff increases. Be mindful of storage costs and shelf-life limitations—stockpiling works best for non-perishable items or products with predictable demand.

3. Reassess Pricing Strategies
Consider small, gradual price adjustments instead of absorbing all cost increases. Transparency with customers can help: explain that minor price adjustments are necessary due to rising import costs.

4. Explore Local Sourcing
Whenever possible, source materials and products locally. This not only reduces exposure to tariffs but can also shorten delivery times and strengthen community partnerships.

5. Evaluate Your Cash Flow
Tariffs can create sudden spikes in expenses. Work with a CPA or financial advisor to stress-test your cash flow, identify potential shortfalls, and ensure you have reserves to handle unexpected costs.

6. Leverage Tax and Duty Incentives
Some businesses may qualify for duty deferrals, exemptions, or credits depending on the type of product and tariff classification. A CPA familiar with import taxes can help you navigate these options.

7. Negotiate with Suppliers
Tariffs are only one part of your cost. Renegotiate contracts with suppliers to share costs or lock in current rates where possible. Bulk orders or longer-term agreements may reduce per-unit costs.

8. Adjust Inventory Management Practices
Use data to identify high-demand items and reduce orders on low-turnover products. Efficient inventory management minimizes carrying costs and avoids tying up cash unnecessarily.

9. Build Strong Customer Communication
Keep your customers informed about supply delays or minor price adjustments. Transparency fosters loyalty and helps maintain trust during uncertain times.

10. Monitor Tariff Changes Regularly
Trade policies can change quickly. Stay informed through business chambers, trade associations, and your CPA to ensure your strategies align with the latest developments.

Conclusion

Tariffs are creating real challenges for Seattle small businesses and startups, from higher costs to disrupted supply chains. However, proactive planning, financial foresight, and strategic supplier management can help mitigate the impact.

Partnering with a CPA or financial advisor who understands import-related taxes and trade regulations can give you a competitive edge; helping you manage cash flow, reduce risk, and maintain profitability during uncertain times.

The post How Tariffs are Impacting SMBs in Seattle appeared first on Huddleston Tax CPAs | Accounting Firm In Seattle.

Investors want to see numbers. A well-supported startup valuation not only demonstrates your company’s current worth, but also signals its potential for future growth. For founders, understanding these valuation methods helps you position your business effectively when seeking funding.

Below are some of the most common startup valuation methods and how they can help you and your potential investors understand what your company is worth.

1. The Berkus Approach (Development Stage Valuation)

The Berkus Approach focuses on evaluating a startup’s progress by assessing five key success factors:

• Technology
• Execution
• Basic value proposition
• Production and sales
• Strategic relationships

Each factor is assigned a value, giving a structured way to measure how far along your business is. This approach is especially useful in the early stages, where hard financial data may be limited, but progress in these areas signals future potential.

2. Valuation by Stage Method

This method aligns a startup’s value with its stage of development. Investors—especially venture capital (VC) firms—use this to balance risk against progress:

• A startup with only a business plan has a lower valuation.
• One that has prototypes, early customers, or revenue milestones commands a higher valuation.

Simply put, the more traction your company demonstrates, the higher your value, and the less risky it appears to investors.

3. Risk-Factor Summation Method

This approach evaluates risks that may affect your startup’s future returns. Common risks include:

• Political or legislative changes
• Manufacturing or technology hurdles
• Competitive pressures
• Capital and investment risks
• Litigation or reputation risks

The method starts with an initial valuation (from another approach) and then adjusts that value up or down based on the number and severity of risks.

4. Cost-to-Duplicate Approach

The Cost-to-Duplicate method calculates how much it would cost to recreate your business from scratch, including expenses, assets, and infrastructure.

While it provides a grounded, tangible number, it comes with a drawback: it doesn’t account for intangible factors like brand equity, customer loyalty, or growth potential. For that reason, this method often produces a conservative (or even lowball) valuation.

5. Discounted Cash Flow (DCF)

The DCF method projects future cash flows your startup expects to generate, then discounts them back to present value using an estimated rate of return.

Because startups are inherently risky, investors usually apply a high discount rate. This approach can be powerful, but it requires thoughtful financial forecasting and realistic assumptions about your market and growth trajectory.

Why Startup Valuation Matters

For founders, a solid valuation is more than a number—it’s a negotiation tool, a way to demonstrate credibility, and a means to secure the capital needed to scale. For investors, valuation helps gauge whether the risk aligns with the potential return.

Even if your startup is in its earliest stages, understanding these methods will help you enter funding conversations with confidence.

Whether you’re pitching seed investors, approaching angel investors, or sitting down with a VC, the right valuation framework can make all the difference in securing the support your business needs to thrive.

The post How To Value A Startup? appeared first on Huddleston Tax CPAs | Accounting Firm In Seattle.

This is a common scenario and one that’s important to handle correctly to ensure your business doesn’t overpay sales tax and remains in good standing with the Washington State Department of Revenue (DOR). Here’s what you need to know.

💡 The Basics: Sales Tax on Merchandise Sold

When you sell a taxable item in Washington, you’re responsible for collecting sales tax from the buyer at the time of purchase. That collected tax is then reported and remitted to the DOR in your quarterly Sales & Use Tax Return.

But if the customer returns the merchandise, you’re no longer required to remit sales tax on that transaction even if the return occurs in a different quarter.

🧾 What to Do When the Return Crosses Quarters

Let’s say you sell a product in Q1 and collect sales tax on that transaction. The customer then returns the product in Q2. You’ve already reported and paid the tax in Q1, so how do you get credit for the returned merchandise in Q2?

The Washington State DOR allows you to report the return as a deduction in the quarter the merchandise is returned.

Steps to Report It:

1. Locate the Deduction Line
   On your Sales & Use Tax Return, look for the line item labeled:
   ✅ “Returned Goods (Retail Sales Tax)”
   This is where you’ll input the amount of the return.
2. Enter the Deduction in the Quarter the Return Occurred
   You do not need to amend your Q1 return (where the sale originally happened). Instead, simply deduct the value of the returned item (including the sales tax you refunded) in Q2, under the “Returned Goods” deduction.
3. Maintain Proper Documentation
   Always keep clear records showing:
   • The original sale (invoice, receipt, or POS record)
   • The date and amount of the return
   • Evidence of the refunded sales tax
   The DOR may ask for this if they audit your filings or request clarification.

🏢 Special Notes for LLCs and Small Businesses

If you operate as an LLC, you follow the same process—but make sure your business registration with the DOR is up to date, especially if you’ve made changes to your structure, tax status, or locations.

Additionally, if your return significantly alters your gross receipts for the quarter (e.g., large returns), be sure it aligns with your business records, bookkeeping, and financial statements.

📉 Example Scenario

• Q1 Sale:
  • Sold item: $1,000
  • Sales tax collected: $100
  • Total reported: $1,100
• Q2 Return:
  • Customer returns item, and you refund $1,100
• Q2 Sales & Use Tax Filing:
  • Enter $1,000 under “Returned Goods” in the deduction section of your Sales & Use Tax Return
  • This reduces your taxable gross sales accordingly, and offsets the previously remitted tax

⚠️ Common Mistakes to Avoid

• Don’t amend your original quarter’s return.
  Unless the return itself was filed with an error, you don’t need to touch Q1. Report the return in Q2.
• Don’t forget to refund the sales tax to the customer.
  You must return the full amount (including tax) to claim the deduction.
• Don’t lump deductions together.
  Always label returned goods correctly so the DOR can track the deduction type accurately.

✅ Summary

• Report the return as a deduction in the quarter the return happens.
• Use the “Returned Goods” deduction line on the Sales & Use Tax Return.
• Keep good records in case of an audit.
• No need to amend the quarter the original sale occurred.

If you need help navigating this or preparing your Sales & Use Tax Return, the team at Huddleston Tax CPAs can assist. We provide bookkeeping, tax filing, and DOR compliance support tailored to Washington businesses—so you can stay focused on growing your company with confidence.

📞 Call us at (425) 483-6600 or contact us online to schedule a consultation.

The post How to Report Merchandise Returns When the Return Falls in a Different Quarter appeared first on Huddleston Tax CPAs | Accounting Firm In Seattle.

Here’s a rundown of some of the most valuable federal and state-level tax credits that Washington small businesses can take advantage of—plus tips on how to actually put them to use.

1. Work Opportunity Tax Credit (WOTC)

What it is:
The WOTC is a federal tax credit for businesses that hire individuals from certain targeted groups who have consistently faced barriers to employment. This includes veterans, ex-felons, SNAP recipients, long-term unemployed, and others.

How it works:
If you hire an eligible employee and they work at least 120 hours, you can claim a credit ranging from $1,200 to $9,600 per hire, depending on their eligibility category and hours worked.

How to claim it:
You must file IRS Form 8850 and submit it to the Washington State Employment Security Department within 28 days of the employee’s start date. This is a tight deadline, so flag this process early in your hiring workflow.

2. Research & Development (R&D) Tax Credit

What it is:
If your business is investing in new or improved products, processes, or software, you might qualify for the R&D Tax Credit—even if you’re not in a traditional tech sector.

How it works:
This credit can be claimed at both the federal and state level in Washington. Eligible expenses include wages, contractor payments, and supplies used in qualified R&D activities. Startups may even be able to use it to offset payroll taxes.

How to claim it:
At the federal level, use IRS Form 6765. Washington State also has a version through its Business and Occupation (B&O) tax credit program for qualified R&D spending.

Tip: Work with a CPA who can help conduct a formal R&D study to support your claim and withstand IRS scrutiny.

3. Energy Efficiency and Green Business Credits

What it is:
If you’re investing in energy-saving upgrades—like installing solar panels, switching to high-efficiency HVAC systems, or using electric vehicles—you may be eligible for both federal tax credits and state-level incentives.

How it works:
Federal incentives under the Inflation Reduction Act now provide significant tax credits for clean energy investments, and Washington offers programs such as sales tax exemptions on specific energy-efficient equipment or green building certifications.

How to claim it:
Credits vary by investment. Solar energy installations often use IRS Form 5695. State-level incentives may require working with the Department of Revenue or Department of Commerce, depending on the program.

4. Paid Family and Medical Leave Tax Incentives

What it is:
Washington’s Paid Family and Medical Leave (PFML) program is funded via payroll taxes, but employers with fewer than 150 employees may qualify for assistance grants of up to $3,000 per employee.

How it works:
These grants help cover training, temporary worker costs, or overtime while an employee is on PFML.

How to claim it:
Apply through the Washington Employment Security Department. You must apply within 90 days of the employee’s leave ending.

5. Employee Retention Credit (ERC) (Still retroactively available in some cases)

What it is:
Although the program ended in 2021, many small businesses in Washington may still be able to file amended returns and retroactively claim the ERC, especially if they faced partial shutdowns or revenue decline during COVID-19.

How it works:
Eligible businesses could claim up to $26,000 per employee, depending on which quarters they qualify for.

How to claim it:
File an amended Form 941-X for the relevant quarter(s). Be cautious here—many third-party ERC mills overpromised refunds and triggered IRS audits. Work with a reputable CPA to make sure you qualify.

Tips for Utilizing Tax Credits Effectively

• Don’t assume you’re too small.
  Many credits are designed with small businesses in mind. A company with fewer than 50 employees may qualify for multiple programs.
• Keep good records.
  Documentation is critical. Payroll logs, project timelines, and receipts make it easier to claim credits and protect your business during an audit.
• Time matters.
  Some credits, like the WOTC and PFML assistance grants, have strict filing deadlines. Build these into your operational processes.
• Talk to your CPA regularly.
  Don’t just wait until tax season. A proactive tax strategy can uncover credits you’re eligible for before they expire.

Let’s Talk Tax Strategy

At Huddleston Tax CPAs, we specialize in helping Washington SMBs take full advantage of available tax credits. We’ll help identify what credits you qualify for, gather the necessary documentation, and ensure your claims are accurate and compliant.

If you think you might be leaving money on the table—or if you’re just unsure where to start—schedule a consultation with us. A well-timed tax credit could be the financial cushion your business needs to grow with confidence.

The post Unlocking Savings: How Small Businesses Can Take Advantage of Tax Credits appeared first on Huddleston Tax CPAs | Accounting Firm In Seattle.

Why Consider a Financial Advisor?

A financial advisor can help you:

1. Clarify Goals: Define short- and long-term financial objectives, such as expanding your business or preparing for retirement.
2. Optimize Cash Flow: Improve budgeting and forecasting to ensure your business remains solvent.
3. Plan for Taxes: Strategize around deductions, credits, and compliance to minimize tax liabilities.
4. Navigate Investments: Evaluate options for reinvesting profits, whether in real estate, equipment, or employee benefits.

For small and medium-sized businesses (SMBs), these services can make a measurable difference in profitability and peace of mind.

When Do You Need a Financial Advisor?

Here are some scenarios where hiring a financial advisor is particularly beneficial:

• Complex Finances: As your business grows, your finances become more intricate. Advisors can streamline reporting, planning, and compliance.
• Tax Planning: Advisors like those at my firm specialize in tax planning for SMBs. They can save you money and avoid surprises come tax season.
• Business Transitioning: If you’re considering selling your business, merging, or transferring ownership, financial advisors can guide you through valuations, negotiations, and structuring.
• Debt Management: Advisors help balance leveraging debt for growth with maintaining healthy financial ratios.
• Retirement Planning: If your business is your primary investment, it’s critical to plan for personal financial security.

When a Financial Advisor Might Not Be the Solution

While advisors can address many financial challenges, there are times when their expertise isn’t the right fit:

1. Legal Complexities: If you’re facing a lawsuit, establishing contracts, or navigating intellectual property issues, a legal team—not a financial advisor—is essential.
2. DIY Simplicity: For sole proprietors or very small businesses with straightforward finances, you may be able to manage your own books with software like QuickBooks or basic consultation.
3. Niche Challenges: Sometimes, you need a specific specialist, like an insurance broker or tech consultant, to address unique business needs.

What to Look for in a Financial Advisor

If you decide a financial advisor is right for you, here’s what to consider:

1. Credentials: Look for advisors with relevant certifications like CPA, CFP, or CFA. These credentials indicate expertise and adherence to ethical standards.
2. Experience with SMBs: Ensure your advisor understands the specific challenges of small businesses in your industry.
3. Transparency: They should be upfront about fees and clearly explain how they’re compensated (flat fee, percentage of assets, etc.).
4. Reputation: Check reviews, references, and professional networks to ensure their credibility.
5. Comprehensive Services: Firms like mine not only advise on finances but also provide integrated tax planning, bookkeeping, and consulting services.

How Huddleston Tax CPAs Can Help

At Huddleston Tax CPAs, we specialize in supporting SMBs with tailored financial advisory services. We understand the unique challenges of small businesses, particularly in tax planning, cash flow optimization, and growth strategies.

However, we also prioritize transparency. If your needs align more closely with legal services or other specialists, we’re committed to directing you to the right resources. Your success—not upselling services—is our goal.

Choosing the right financial advisor is about more than finding someone with a good sales pitch. It’s about partnering with someone who understands your goals, aligns with your values, and offers the right expertise.

For SMBs, a financial advisor can be a transformative asset—but only when chosen thoughtfully and with clear objectives in mind. Take the time to evaluate your business’s needs and whether professional advice can bring clarity and value. Whether you’re seeking a long-term partner or advice on a specific challenge, making the right choice today can set your business up for success tomorrow.

The post When to Hire a Financial Advisor & when to go it Alone appeared first on Huddleston Tax CPAs | Accounting Firm In Seattle.