Last month, we held our 5th annual New Business Directions team retreat, once again in beautiful Ocean Park, Puerto Rico. As a fully remote team, opportunities to connect face-to-face are rare, which makes this annual tradition especially meaningful. 

Each year, we step away from our daily routines to focus on what matters most—our people, our customers, and the direction we want to take in the year ahead.

This year’s retreat felt particularly special because we welcomed a new team member, bringing fresh perspectives and a new dynamic to our conversations. With a slightly larger group, our discussions had even more depth, and the exchange of ideas was energizing.

One word surfaced repeatedly throughout the weekend: freedom.

Freedom to live our lives fully.
Freedom to make a living doing work we genuinely enjoy.
Freedom to collaborate with a team and serve customers we truly value.

For us, that word captures the heart of why we built this business the way we did.

Time to Think About the Bigger Picture

While the setting may have looked like a vacation destination, the retreat gave us something even more valuable: space to think.

Without the usual interruptions of daily work, we were able to step back and clearly define our priorities for the coming year. We talked openly about our goals as a company and how we can support each other in achieving both professional milestones and personal aspirations.

These conversations are where alignment really happens. They help ensure that the work we do together continues to move us toward a shared vision.

The Best Ideas Don’t Always Happen in a Conference Room

Of course, some of the most meaningful moments didn’t happen during formal discussions.

They happened while walking along the beach, sharing meals, and exploring together.

We soaked up plenty of Puerto Rican sunshine, enjoyed incredible local food, and took long walks along the shore of Ocean Park. One of the highlights of the trip was a visit to the Museo de Las Américas in Old San Juan, where we spent time exploring the history and culture of the Caribbean and Latin America.

Those shared experiences build something that’s hard to create over video calls: real connection.

Why We Keep Coming Back

Our annual retreat has become an important part of how we grow as a team. It reminds us that a successful company isn’t just about systems, numbers, or strategy—it’s about people working well together and supporting each other.

When we return home, we bring back more than a refreshed perspective. We return with stronger relationships, clearer priorities, and renewed energy for the year ahead.

And perhaps most importantly, we return with a deeper appreciation for the freedom we’re building together—both for ourselves and for the customers we serve.

Until next year, Puerto Rico.

If you’ve ever purchased a vehicle, machinery, or large equipment for your business and wondered, “How should I be tracking this properly?” — you’re not alone.

QuickBooks Desktop includes a powerful (and often overlooked) tool called the Fixed Asset Item List. When used correctly, it can help you stay organized, simplify conversations with your accountant, and keep better records of major purchases.

Let’s walk through what it is — and what it’s not.

What Is the Fixed Asset Item List?

The Fixed Asset Item List is available in QuickBooks Desktop Pro, Premier, and Enterprise. It allows you to track important details about significant business purchases, such as:

• Vehicles
• Machinery and equipment
• Large furniture purchases
• Other long-term business assets

A good rule of thumb many businesses use is a capitalization threshold of around $2,500. If the purchase is over that amount and expected to last longer than one year, it’s typically treated as a fixed asset and depreciated over time rather than expensed all at once.

What the Fixed Asset Item List Doesn’t Do

One of the most important things to understand about the Fixed Asset Item List is that it does not post to your general ledger. This feature is strictly a tracking tool. It doesn’t create accounting entries or record transactions in your books.

Instead, it acts as a centralized place to store detailed information about your business assets, like:

• Purchase date
• Purchase price
• Vendor information
• Asset account mapping
• Serial numbers
• Warranty details
• Descriptions
• Sale date and sale price (if sold)

If the asset is later sold, you can also record the sale date, sale price, and any related expenses. Think of it as your organized digital filing cabinet for fixed assets — a structured way to keep all the important details in one convenient location.

Why This Matters

When tax time rolls around, or when your accountant needs details for depreciation schedules, having this information readily available can save hours of back-and-forth.

You can easily generate a Fixed Asset Item List report that shows what you purchased, when you purchased it, and how much you paid. This creates clarity and reduces chaos — especially as your business grows and asset purchases become more frequent.

For Accountants: Built-In Fixed Asset Manager

If you’re using the Accountant version of QuickBooks Premier or Enterprise, there’s an additional tool available under the Accountant menu: Fixed Asset Manager.

This feature goes beyond tracking — it can calculate multiple depreciation methods (up to six different bases), making it a robust built-in depreciation solution.

For accounting professionals, it’s an incredibly powerful resource already embedded in the software.

Closing Thoughts

When fixed assets aren’t tracked properly, it can lead to confusion, missed deductions, and unnecessary back-and-forth at tax time. Keeping your Fixed Asset Item List updated ensures that purchase dates, costs, and key details are readily available when your accountant needs them — and allows you to quickly generate reports showing what was purchased, when, and for how much.

As your business grows and asset purchases become more frequent, having this structure in place creates clarity and supports smarter financial decisions year-round. If you’d like guidance on organizing your accounting system or improving visibility into your numbers, visit newbusinessdirections.com to connect with our team. We’re here to help you create order out of chaos.

As a business owner, your vehicle may be an essential tool for operations, and it’s possible to reduce your tax burden by properly deducting vehicle-related expenses. But did you know you have options? Whether you own or lease a vehicle for business, there are ways to maximize your deductions, and it all starts with understanding the choices available to you.

The Difference Between Actual Expenses and the Standard Mileage Deduction

When it comes to deducting business vehicle expenses, you generally have two options: the actual expenses method and the standard mileage deduction. Each has its advantages, so let’s break them down:

Method 1: Actual Expenses

Under this method, you can deduct the actual costs of using your vehicle for business. This includes:

• Gas, oil, and maintenance
• Repairs and tires
• Insurance premiums
• Loan interest
• Depreciation (more on that below)

For business owners who use their vehicles frequently, this method can offer significant savings. However, it’s important to track all the costs associated with owning and maintaining your vehicle. Keeping accurate records of these expenses is essential to substantiate your deductions.

Method 2: Standard Mileage Deduction

Alternatively, you can opt for the IRS standard mileage rate for calculating your deduction. This rate covers most vehicle-related expenses like gas, maintenance, insurance, and even depreciation. It simplifies the process since you don’t have to track individual expenses, but it’s important to note that for some vehicles, especially larger ones, the actual expenses method might yield a higher deduction.

For 2025, the IRS standard mileage rate was 70 cents per mile. As of December 29, 2025, the Internal Revenue Service announced that the optional standard mileage rate for business use of automobiles will increase by 2.5 cents in 2026, to 72.5 cents per mile. To claim this deduction, you will need to track the number of miles you drive for business purposes.

Understanding Depreciation: A Key Factor for Business Vehicle Deductions

When you own a business vehicle, you can depreciate its value over several years. Depreciation allows you to deduct a portion of the vehicle’s cost each year, reducing your taxable income over time. The IRS offers specific guidelines on how to calculate depreciation, but it’s essential to keep accurate records to ensure you’re claiming the right amount.

Here are some important considerations about depreciation:

• Vehicles with a Gross Vehicle Weight (GVW) under 6,000 pounds are considered luxury automobiles and have depreciation limits.
• Vehicles with a GVW over 6,000 pounds may qualify for accelerated depreciation, allowing you to deduct a larger portion of the vehicle’s cost in the earlier years of ownership.
• If you don’t use the vehicle exclusively for business purposes, depreciation deductions will be limited based on the percentage of business use, and if you go below 50% business usage, depreciation methods are further limited.

Depreciation is particularly useful for larger vehicles, as it can significantly increase your deductions over time. However, when you sell or dispose of the vehicle, you’ll need to account for depreciation recapture, which could impact your tax return.

The Importance of Contemporaneous (or Real-Time) Mileage Logs

Regardless of whether you choose the actual expenses method or the standard mileage rate, keeping contemporaneous mileage logs is a must.  You can even do this in your QuickBooks.

Contemporaneous refers to keeping real-time records of your mileage, each day, as it’s happening — not logging trips after the fact, at year-end when you’re trying to document for a tax deduction.

For each trip, make sure to track:

• The date of the trip
• The destination
• The business purpose of the trip
• The starting and ending odometer readings

Why is this so important? If the IRS ever audits your business, having detailed, up-to-date mileage logs will be essential for proving your deductions. Fortunately, there are many apps and tools available to make this process easier and more efficient, so you can track your mileage on the go.

Key Takeaways

• Actual expenses offer a deduction for all costs associated with vehicle ownership, including gas, maintenance, insurance, and loan interest, along with depreciation.
• The standard mileage deduction simplifies the process by offering a fixed rate for business miles driven.
• Depreciation can reduce taxable income over time, but be sure to track it correctly.
• Contemporaneous mileage logs are critical for both methods to ensure you’re prepared in case of an audit.

Need Help? Let’s Talk.

Whether you’re unsure which method is best for your business or you need help keeping your mileage logs in order, we’re here to assist you. Reach out today to schedule a consultation.

If you want trustworthy financials — the kind your accountant, tax preparer, or board can rely on — one of the simplest things you can do in QuickBooks is set a closing date password. This small step helps protect the accuracy of your numbers and prevents accidental changes after a period has been finalized.

At New Business Directions, we work with business owners who want to grow their business without losing their minds. One way we can help you retain your sanity? Teaching you how to use this simple QuickBooks feature: setting a closing date password in QuickBooks.

Why You Should Set a Closing Date Password in QuickBooks

Imagine you’ve just sent your year‑end backup file to your CPA or auditor. Later, someone edits a past‑dated transaction in QuickBooks — changing amounts or dates that have already been reported. That creates discrepancies and can trigger confusion, extra work, or even incorrect tax filings.

A closing date password “locks” your reporting period so no one can modify the numbers without explicit permission. It’s a simple but powerful safeguard that protects your data integrity.

When to Set a Closing Date Password

• Year‑End: A best practice for most organizations — especially if you’re sending data for taxes or audits.
  
• Quarterly: If your board reviews quarterly reports, lock the books after each reporting cycle.
  
• Before External Reporting: Anytime you share your numbers externally, a closing date password adds peace of mind.

Step-by-Step Tutorial: How to Set the Closing Date Password

1. Log in as the Admin user (only an admin can change this preference).
   
2. In QuickBooks, go to Edit > Preferences > Accounting > Company Preferences.
   
3. Click Set Date/Password, and choose the closing date for the period you want to lock.
   
4. Exclude non‑posting transactions like estimates or purchase orders — they don’t affect financial results and can remain flexible.
   
5. Choose your password. Use something memorable (and meaningful!) to your team that’s also secure.

Once it’s set, QuickBooks will prompt anyone trying to enter or change a transaction dated before the closing date to enter the password. If they don’t have it — or shouldn’t be making the change — they won’t be able to proceed.

How to Monitor What Happens in QuickBooks After Closing

In the Accountant version of QuickBooks, you can run:

• Audit Trail Reports: shows who made changes and when.
  
• Closing Date Exception Reports: shows edits that occurred in closed periods and what was changed.

These tools help you keep an eye on your file’s history, giving you confidence that your books stay clean and reliable.

Final Thoughts

Setting a closing date password is more than a QuickBooks setting — it’s part of a good accounting discipline that supports accurate reporting, easier audits, and fewer surprises at tax time.

If you ever need support with QuickBooks setup, cleanup, training, or workflow improvements, we’re here to help. Explore resources on our website, subscribe to our newsletter, and learn how we can help bring clarity and confidence to your accounting system. 

As the year winds down, it’s time to get your 1099 reporting strategy in order. Whether you run a business or a nonprofit, staying compliant with IRS information return rules isn’t optional — and mistakes can be costly.

From collecting Form W-9s from every service provider to understanding which 1099 form applies (and when it’s due), the details matter. This guide walks you through the essential steps for the 2025 tax year, including updated thresholds, key deadlines, and practical tips to streamline your reporting process. Let’s break down what you need to know — and do — before January 31, 2026, rolls around.

1. Collect and Maintain a Form W-9 from Every Service Provider (Mandatory)

You must obtain a completed Form W-9 from every service provider you engage (including sole proprietors, partnerships, corporations, and LLCs) — without exception.

• The W-9 gives you the name, taxpayer-identification number (TIN), and entity type information you need in order to determine whether you must issue a 1099.
• If the TIN is a Social Security Number, it must match the person’s name on the W-9 exactly (via IRS TIN matching).
• If the TIN is an Employer Identification Number (EIN), it must match the business name on the W-9.
• Retain the W-9 in your records for potential IRS verification; failure to collect may trigger backup withholding or penalties.

2. Understand the Difference Between Forms 1099-NEC and 1099-MISC

• Form 1099-NEC is used for non-employee compensation — payments for services (including attorneys, contractors, consultants) when made in the course of your trade or business.
• Form 1099-MISC is used for payments such as rent, royalties, prizes/awards, or other miscellaneous income not reported on another 1099 form.

3. Save These Due Dates for 1099s

For Form 1099-NEC (non-employee compensation): 

• The IRS instructions state you must file with the IRS on or before January 31, 2026. 
• You must also furnish recipient copies by January 31, 2026. 

For Form 1099-MISC (rents, royalties, etc.):

• Recipient copies due by January 31, 2026. 
• IRS filing: If paper, due by February 28, 2026; if electronic, due by March 31, 2026. 

4. Review Updated Reporting Thresholds and What They Mean for Small Businesses

• For tax year 2025: the threshold for issuing 1099-NEC or 1099-MISC remains $600.
• Beginning tax year 2026: the threshold for both 1099-NEC and 1099-MISC will rise to $2,000, and starting in tax year 2027, the threshold will be indexed for inflation. 
• For Form 1099-K (payments via third-party settlement organizations/payment apps): under the One Big Beautiful Bill Act (OBBBA) the threshold has been restored to $20,000 and 200 transactions (i.e., both conditions must be met) for tax year 2025 and going forward. 

The previously planned lower thresholds (e.g., $2,500 or $600) for 1099-K are not in effect; the higher threshold is back.

5. Know How 1099 Rules Apply to Your Business or Nonprofit

• You must collect a W-9 from every service provider, regardless of entity type (even if you’re sure they’re a corporation). That gives you the information needed to determine your reporting obligations.
• If you pay a service provider $600 or more (for services) in 2025, you’ll generally need to issue a 1099-NEC (assuming they’re not treated as a vendor exempt from reporting).
• If you pay rent, royalties, or other miscellaneous payments under the 1099-MISC rules at or above $600, you must issue that form accordingly.
• If you pay through a third-party settlement organization (PayPal, Venmo, marketplace platform): you may not receive a 1099-K unless gross payments exceed $20,000 and the number of transactions exceeds 200. Regardless of whether you receive a form or not, all income must be reported on your tax return.
• Do not rely on whether you receive a form to determine whether you must report income. Receipt of a form is an information aid — your tax-reporting obligation remains irrespective of receiving a 1099.

6. Review this Quick Action Checklist for 1099s at the end of 2025

• Send W-9s to all service-providers (and securely store them).
• Review all payments made in 2025 for services, rents, royalties, etc., and determine which ones hit the $600 threshold.
• Issue required 1099-NEC or 1099-MISC forms by January 31, 2026, and file the IRS copy timely.
• If you use payment apps or platforms to pay providers or vendors, track the gross payments and count of transactions to each payee — note that they must exceed $20,000 and 200 transactions before a 1099-K will be issued.

Bottom Line

For tax year 2025, the rules are relatively stable: $600 threshold for 1099-NEC/MISC, W-9s required for all service providers, and the 1099-K threshold is back at the $20,000/200-transaction level. Don’t wait until the last minute to start preparing your 1099s—get your W-9s in, identify your payments early, and ensure your records are ready for the January rush.

We’re happy to guide our customers through the process, from verifying vendor details to ensuring accurate filings. Let us take the stress out of 1099 compliance so you can focus on your business as we head into the new year.

Wishing you a smooth year-end, clean filings, and peace of mind.