Tax credits denied

Feeling the mid-busy-season pressure? Let's liven things up!

This week's newsletter explains why the IRS is rejecting some EV tax credits, what's keeping firms from holding on to their top performers. If that's not enough, we've also got a must-listen podcast and a peek at Gen Z's surprising take on finances.

Inside this issue:

• How firms can create a culture that retains top talent
• Helping small business clients build financial confidence
• What it takes to successfully lead a CAS practice
• Why EV tax credits are being rejected

P.S. We need your input! Help us make The Net Gains even better—share your thoughts in this short survey. 

Cultivate a culture that keeps top talent

High turnover in your firm can disrupt client relationships and team dynamics. Amy Vetter, CPA, CGMA, and CEO of the B3 Method Institute, has ideas about why employees leave their firms beyond commonly cited factors like pay and workload.

Drawing from extensive experience in public accounting, Vetter emphasizes how important it is to prioritize work-life harmony and professional growth. She argues that creating such a culture requires a fundamental shift in leadership approaches to focus on the human aspects of the profession.

Why this matters: Understanding and addressing the deeper reasons behind employee departures helps you come up with strategies to promote a supportive and growth-oriented workplace that employees want to be a part of. (CPA Practice Advisor)

Empowering small business clients with a new money mindset

Many small business owners struggle with financial confidence. They might say they aren't good with numbers or avoid financial decisions until they become big problems. What if accountants could help them shift that mindset?

Ruchi Pinniger spent almost two decades as a senior executive in the financial services industry before deciding to launch Watch Her Prosper, a company dedicated to helping woman business owners get their finances in order. Here, the CEO and founder opens up about unlearning limiting money beliefs and the daily habits that separate short-term earners from long-term wealth builders. Read on for Pinniger's advice on guiding your clients toward financial confidence. -Janet Berry-Johnson

Many small business owners struggle with financial confidence. What are the biggest mindset shifts they need to make to step into financial leadership?
The biggest shift? Owning their role as the financial leader of their business—whether they feel “good” with numbers or not. Too many business owners tell themselves they’re “not a numbers person” and avoid their finances until there’s a problem. But true financial leadership starts with engagement, not perfection. Confidence comes from clarity. Encourage your clients to start by looking at their numbers regularly, asking questions and making financial decisions based on intention rather than fear. When they shift from avoidance to awareness, beautiful things happen.

You talk about the connection between learned beliefs about money and business success. What common money beliefs do entrepreneurs need to unlearn, and how can they start shifting them?
So many business owners carry old money stories—beliefs they picked up from childhood, past experiences or society. A big one? “Making money has to be hard.” Many entrepreneurs equate struggle with success and feel guilty when money flows easily. Another? “I’ll never be good with numbers.” When you tell yourself that, you give up your power. The key to shifting these beliefs is my RIR Method—Recognize, Interrupt, Reframe. Recognize the limiting belief, interrupt it by questioning its truth and reframe it with something more empowering. Money isn’t good or bad—it’s a tool. And when your clients change their money mindset, they can change the prosperity of their business.

What daily or weekly financial habits do you recommend for entrepreneurs who want to build long-term wealth, not just short-term revenue?
Building long-term wealth isn’t about big, flashy moves—it’s about consistent habits that create financial prosperity over time. I recommend business owners schedule a weekly “money date” with themselves. They can take this time to look at their cash flow, check their bank balances, review upcoming expenses and actually engage with their numbers. Automate savings—both for taxes and their future self—so they're building reserves without overthinking it. Accountants and bookkeepers can help by tracking numbers before the clients need to issue financial statements or file tax returns. The entrepreneurs I see building real wealth aren’t just making money and spending it—they’re keeping it, growing it and using it with intention.

What it takes to lead a CAS practice

Client Advisory Services (CAS) is a major growth area for firms of all sizes. In a recent episode of the Journal of Accountancy podcast, Nina Chmura, CPA, a partner at Withum, shared her expertise on successfully managing a CAS practice. Speaking from the Digital CPA conference in Denver, Chmura discussed essential strategies for CAS growth, including why it's crucial to identify and track metrics, how to align advisory services with the firm's overall goals and the connection between employee morale and client service.

Why this matters: Chmura's advice to focus on key performance indicators, build strong client relationships and invest in leadership development is a must-listen for any accountant who wants to grow and lead a CAS practice. (Journal of Accountancy)

IRS commissioners speak out: Former IRS commissioners push back on Trump administration firing IRS employees during tax season.

School's out (of cash): After an employee stole $205,000, a Louisiana school board transitions from cash to a digital bookkeeping system.

Inventory accounting showdown: The Tax Foundation makes the case for keeping last-in, first-out (LIFO) around.

The AI bookkeeping dream lives on. Finally, a Miami-based bookkeeping startup raises $200 million in Series B funding.

4.7 billion

The number of views on TikTok's #FinTok, where users get (questionable) financial tips and advice. (CNBC)

Deloitte/Defense dilemma: Deloitte stands to lose a big chunk of its U.S. revenue as the Department of Defense reviews consulting contracts.

Bye-bye, estate tax? RSM discusses how repealing the estate tax could impact taxpayers.

Vote now: Cast your vote to recognize top ProAdvisors.

Conflict waiting to happen: KPMG's plans to practice law in the US could impair independence with audit clients.

Gen Z finances: Young adults embrace open salary discussions and unconventional income sources. 

Refund rejected?

Are your clients claiming electric vehicle (EV) credits? Watch out for IRS rejections.

Several taxpayers who've tried to claim the federal credit have had their returns rejected because the car dealers fail to submit the required paperwork to the IRS. Without a Clean Vehicle Seller report submitted via the IRS Energy Credits Online portal, the agency can't verify the vehicle's eligibility.

Why this matters: Dealers only have three days to submit the necessary paperwork. Your clients might be better off getting a rebate at the time of sale instead of counting on a tax credit months after the sale. (NPR)

The Net Gains is your one-stop shop for fresh, FREE accounting insights. You can reach the newsletter team at thenetgains@mynewsletter.co. We enjoy hearing from you.

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The Net Gains is curated and written by Janet Berry-Johnson and edited by Bianca Prieto.