Prudent Accountants Content

Prudent Accountants delivers comprehensive Accounting Services in Minneapolis for individuals, small businesses, and growing enterprises. From bookkeeping and payroll to tax preparation and financial consulting, our expert team ensures your numbers are accurate, your records are organized, and your finances are fully compliant. Whether launching a startup or scaling your business, we provide tailored solutions supporting long-term success and peace of mind. For more information, call (612) 605–3178.

Many small business owners pay for business expenses out of their own pocket — because it’s faster, easier, or just how they’ve always done it. But what if we told you those out-of-pocket expenses might not be properly deducted on your taxes? And that could be costing you money every year — money you’re entitled to keep. This is especially common among self-employed individuals, partners in small LLCs, and first-generation entrepreneurs who haven’t yet built formal expense systems or don’t want to “bother” their accountant with the small stuff. The IRS has a name for this: Unreimbursed Partnership Expenses (UPE) — and if you’re not tracking and reporting these the right way, you might be missing out on thousands in deductions. What Are Unreimbursed Partnership Expenses? If you’re a partner in a business (such as an LLC), and you spend your own money on business-related costs that the business doesn’t reimburse you for — those are considered Unreimbursed Partnership Expenses. Common exa...

You finally caught a break — your lender forgave part (or all) of your business debt. But now the IRS wants a piece of that too? That doesn’t seem fair. And yet… it’s real. If you’ve had any debt forgiven — whether a business loan, credit card, lease, or a COVID-era relief program — you may be sitting on a tax problem without realizing it. This article explains what Cancellation of Debt Income (CODI) is, why it matters, and how to handle it before it costs you more than it should. What Is “Cancellation of Debt Income”? When a lender cancels or forgives a debt, the IRS may treat that amount as taxable income. Even if no cash ever exchanged hands, that forgiven balance can increase your taxable income — and your tax bill. Example: If you owed $30,000 on a loan and negotiated a payoff of $20,000, the IRS could treat the remaining $10,000 as COD income unless an exclusion applies. This often surprises business owners because debt relief feels like a financial win… until tax season. Who Is ...

Recent changes to U.S. trade policy are once again shifting the financial ground for small businesses — especially those that rely on imported goods, packaging, food products, or materials. While some tariff rates have been temporarily reduced, uncertainty remains high. Whether you’re running a licensed facility, manufacturing culturally specific foods, or preparing for the next round of grant funding or operational expansion, changes like these affect more than just your invoices — they impact cash flow, compliance, and long-term financial planning. What’s Changing with Tariffs? A new 90-day agreement between the U.S. and China has resulted in: A reduction in U.S. tariffs on many imported Chinese goods (from 145% to 30%) Lower tariffs from China on U.S. exports (from 125% to 10%) This is a short-term move and doesn’t guarantee future rate stability. Businesses that rely on international supply chains for food ingredients, packaging, equipment, or clothing may see small cost dips — but...

Prudent Accountants offers expert tax preparation services in Minneapolis, helping individuals, families, and small businesses maximize refunds and ensure full IRS compliance. Our team of experienced professionals provides personalized tax strategies designed to minimize liabilities and uncover every eligible deduction. Whether you’re self-employed, managing multiple income streams, or planning for the future, we take the guesswork out of tax season. Trust Prudent Accountants for reliable, accurate, and affordable Tax Preparation in Minneapolis that puts your financial goals first. For more information, call (612) 605–3178.

When you hear “research and development tax credit,” you might picture scientists in lab coats or tech companies building new software. But what most business owners don’t realize is this: many small businesses qualify, and they’re missing out on thousands in potential tax savings each year. If your business is developing new products, testing recipes, improving production methods, customizing processes, or experimenting with new techniques — you may already be doing R&D work without realizing it. What Is the R&D Tax Credit? The R&D Tax Credit is a federal incentive that reduces your income tax liability for qualified research and development (R&D) expenses. It’s a dollar-for-dollar credit, not just a deduction, meaning it can directly reduce what you owe the IRS. Depending on how your business qualifies, the credit can be worth 14% to 20% of your eligible R&D expenses. What Qualifies as R&D? R&D goes far beyond high-tech product development. To qualify, you...