Hodges & Wreyford LLC.

11/03/2026

How profitable was your business this year? Reliable insight into profitability requires careful attention to accrued expenses. These are costs your business has incurred but hasn’t yet paid. Under GAAP, you generally must record them in the period they arise to match expenses with related revenue. Common examples include payroll, employee benefits, taxes, interest, utilities and professional fees. A consistent closing process helps you identify unpaid obligations, avoid overstating profits and give lenders, investors and other financial statement users a clearer picture of your business’s performance. Call us at (318) 725-2272 for guidance on reporting accrued expenses in the proper period.

11/02/2026

Small business owners: As the year wraps up, review your receivables for credit sales that have become wholly or partially worthless. If you use the accrual method of accounting, you may be eligible to deduct amounts that were included in income but later became uncollectible. You may also claim deductions for uncollectible business loans and certain guarantees, as well as for debts attributable to an insolvent partner. To qualify, you must take reasonable steps to collect the debt and show it’s unlikely to be paid. Contact us at (318) 725-2272 to review your potential bad debts for 2026.

10/30/2026

10/29/2026

Retirement is far from most teenagers’ minds when they get their first jobs. But those early earnings create a significant tax-advantaged savings opportunity. Even modest IRA contributions now can substantially multiply over time. For example, just $2,000 contributed to an IRA earning 5% annually will grow to nearly $23,000 50 years later. A Roth IRA can be especially powerful because qualified distributions will be tax-free. For 2026, the annual contribution limit for IRAs is the lesser of taxable compensation or $7,500. 2026 contributions can be made until April 15, 2027, but the income to support them must be earned by Dec. 31, 2026. Contact us at (318) 725-2272 to discuss tax-smart planning for your teen.

10/28/2026

Reconstructing business mileage records months after the fact can be frustrating — and unreliable. If you or your employees use personal vehicles for business, establish a system for logging trips as they occur. QuickBooks users can take advantage of mobile tools that automatically track trips and classify business vs. personal mileage. Other mileage apps or a well-maintained manual log can also work. As year end approaches, make sure your records include key details, such as mileage and business purpose. Timely, accurate documentation is essential for bookkeeping, employee reimbursements and tax reporting. Call us at (318) 725-2272 for help improving your mileage tracking process.

10/27/2026

Financial statements help owners and other stakeholders evaluate historical business performance. But trouble can develop between reporting periods. So it’s critical to monitor operational changes for issues that could affect your financial interests. Unexpected turnover, delayed financial reports and unusual transactions may warrant a closer look. So can repeated borrowing, reliance on an owner’s personal credit or sales of equipment needed for operations. Individually, these developments may be explainable. Together, they could point to financial stress. Call us at (318) 725-2272 to help identify potential risks and evaluate a business’s financial health.

10/26/2026

Good news: IRS penalty relief just got easier for many individuals and businesses. The new Automatic Exemption from Penalty (AEP) process may provide automatic relief from certain failure-to-file, failure-to-pay and failure-to-deposit penalties if you’ve filed returns and paid federal taxes on time for the previous three years (or 12 consecutive quarters for quarterly returns). You must still pay any tax and interest due. AEP will replace First Time Abate relief for eligible returns with original due dates on or after Jan. 1, 2027. During the transition, some eligible taxpayers may still receive penalty notices. Contact us at (318) 725-2272 to determine whether you qualify for AEP or other penalty relief.

10/22/2026

Watch out for the growing reach of the 3.8% net investment income tax (NIIT). The income thresholds haven’t changed since the tax took effect in 2013, so it’s hitting more taxpayers. If you have net investment income (NII) and your 2026 modified adjusted gross income (MAGI) exceeds $200,000 ($250,000 if you’re married and file jointly, half that if you file separately), you’ll be subject to the NIIT on the lesser of your NII or the amount by which your MAGI exceeds the applicable threshold. Some NII examples are taxable interest, dividends, and gains from stocks, bonds and mutual funds. Year-end planning may help reduce your MAGI or NII and, in turn, the NIIT’s impact. Call us at (318) 725-2272 to learn more.

10/21/2026

A well-defined compensation philosophy can do a lot for your business. It may help attract job candidates, retain employees and control payroll costs. Although competitive pay is important, employees consider your full compensation package. This includes bonuses and other performance incentives, benefits and perks, professional development opportunities, and flexible work arrangements. Contact us at (318) 725-2272 for guidance on developing a well-rounded strategy that’s aligned with your business goals, workforce needs and budget.

10/20/2026

When buying a business, financial due diligence is essential. Start by reviewing financial statements, tax returns and the accounting records behind the numbers. Receivables, inventory, bank reconciliations and related-party transactions may reveal risks that aren’t obvious at first glance. Adjustments may also be needed for expenses or financial arrangements that won’t continue after the sale. An independent quality of earnings (QoE) report can help determine whether reported earnings are sustainable. New U.S. Small Business Administration guidance requires QoE reports for certain change-in-ownership transactions. Contact us at (318) 725-2272 for help navigating the due diligence process.