The Weight of the Pack

Oct 8th, 2025

In 1972, I found myself on the tallest mountain in the contiguous United States: Mt. Whitney, 14,505 feet above sea level. I was 13 years old, tagging along on a 10-day trek with my friend, her family, and a handful of other kids.

Our starting point was Bishop Creek Trail, and the first stretch—five miles to the John Muir Trail—was a relentless climb. It felt straight up. My pack was too heavy for my size, and every step closer to the crest required another rest stop. The adults had their hands full shepherding the 8-, 10-, and 11-year-olds. For me, the message was clear: “Keep moving. You’ll figure it out.”

And eventually, I did.

The pack didn’t get lighter. The mountain didn’t get shorter. What changed was me. I learned how to carry the weight, how to pace myself, and how to keep going even when I thought I couldn’t.

That early struggle is the part of the journey I remember most vividly.

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Business can feel the same way—especially when it comes to financials.

At the start, the weight of your records feels overwhelming. The numbers seem heavy, disorganized, even a little unforgiving. The first miles—the early months or years—are steep. You may not know what’s critical to track, what can wait, or how to interpret what you’re seeing.

Just like a heavy pack, financial records don’t get lighter on their own. Every receipt, transaction, payroll, and transfer adds to the load. And if you don’t learn how to carry it properly, the weight can feel unbearable.

But here’s the part we often forget: the struggle isn’t wasted effort. It’s what builds the rhythm. Over time, you learn to read your reports differently. You see patterns instead of noise. You stop staring at the numbers and start listening to the story they’re telling.

And that story matters.

Because your financials are the story of your business. They carry the history of what you’ve built, the choices you’ve made, and the risks you’ve taken. They also point forward—showing what’s possible, where the dangers lie, and how close you are to the summit you’re aiming for.

Just like the trail, financial clarity doesn’t come from wishing the pack was lighter. It comes from building the strength to carry it. Step by step. Report by report. Until what once felt impossible becomes part of your stride.

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What Horse Training Taught Me About Accounting (And Vice Versa)

Sept 11th, 2025

You might not think accounting and horse training have much in common. But spend enough time in both arenas, and the overlap becomes crystal clear.

At MTB Services Etc., we’re always finding new ways to connect the dots between life and ledgers. And let me tell you: the barn and the books? They’ve got some shared secrets.

Here are 5 ways accounting is just like horse training:

1. It’s All About Consistency

You can’t ride once a year and expect a blue ribbon. Horses need routine. They learn through rhythm, not random attention.

Same with your books.

Neglect your accounting until tax time, and you’re setting yourself up for stress, errors, and missed opportunities.
But show up regularly—even a little bit at a time—and you build clarity, trust, and forward motion.

One ride a year doesn’t train the horse. One yearly scramble doesn’t build clean books.

2. The Small Things Matter

Horse people know: it’s not just about the big rides. It’s how you approach, how you halter, how you sit the trot.

Likewise, in accounting, the devil’s in the detail.

A mistyped expense category or forgotten receipt might not seem like a big deal… until the end of the year when it snowballs. Small habits make big differences. And precision? It’s powerful.

3. You Have to Earn Trust

With horses, force backfires. You don’t demand trust—you earn it.

Your clients, your team, your financials? Same deal.

When your accounting is up to date and well-managed, people trust your numbers. Your decisions become confident, not reactive. Trust isn’t just about people—it’s in the systems we create, too.

4. Each One Has a Personality

Every horse is different. Some are bold. Some are spooky. Some are quietly brilliant.

Every business is different too. The structure, the cash flow, the way the owner thinks about money—it all adds up to a unique rhythm.

At MTB, we don’t use cookie-cutter charts of accounts. We build systems that fit your pace and personality. Because accounting, like horsemanship, works best when it’s tailored.

5. The Goal Is Harmony, Not Control

Horse training at its best isn’t about dominating—it’s about partnering. Moving together. Understanding.

Accounting isn’t about tightening every screw until it squeaks. It’s about aligning your business with your values, your goals, your growth path.

When it flows, you feel it.
And when it doesn’t… well, you feel that too.

From Saddle to Spreadsheet: Why This Matters

Whether you’re managing multiple entities or just trying to keep your side hustle on track, the truth is simple: your numbers should work with you, not against you.

And like horse training, the results come over time—through consistency, care, and a little bit of grit.

So if you’re ready to stop scrambling once a year and start building a system that moves with you…

Let’s talk. We’ve got the reins and the roadmap.

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Tax Deduction vs. Tax Credit: What’s the Difference?

August 19th, 2025

When it comes to lowering your tax bill, not all savings are created equal.

As a small business owner, you’ve probably heard of tax deductions and tax credits—but do you know the difference between the two? Understanding how each one works can help you make smarter financial decisions and potentially save you thousands at tax time.

Let’s break it down in plain English.

What Is a Tax Deduction?

A tax deduction reduces your taxable income. That means you subtract it from your total income before calculating how much tax you owe.

Example:

Let’s say your business earns $100,000 in net income. If you have $10,000 in tax deductions (e.g., business expenses like software, advertising, or mileage), you’ll only be taxed on $90,000.

If you’re in the 22% tax bracket, that $10,000 deduction saves you $2,200 in taxes.

Common small business deductions:

• Home office expenses
• Business travel and meals
• Office supplies and equipment
• Marketing and advertising
• Professional services (accountants, consultants)

What Is a Tax Credit?

A tax credit reduces your actual tax bill, dollar-for-dollar.

That means if you owe $5,000 in taxes and you have a $1,000 tax credit, you now owe just $4,000—simple as that.

Example:

If you qualify for a $1,000 tax credit, you save $1,000, regardless of your tax bracket.

Common tax credits for small businesses:

• Work Opportunity Tax Credit (for hiring from targeted groups)
• Small Business Health Care Tax Credit
• Research & Development (R&D) Tax Credit
• Disabled Access Credit

Key Differences at a Glance

Feature	Tax Deduction	Tax Credit
Reduces	Taxable income	Tax liability (your tax bill)
Value depends on	Your tax bracket	Full face value
Example value	$1,000 deduction might save $220	$1,000 credit saves $1,000
Common examples	Business expenses, mileage, meals	R&D credit, health care credit

Which One Is Better?

If you had to choose between a $1,000 deduction or a $1,000 credit—take the credit every time. Why? Because it reduces your tax bill directly and has more impact.

The real power comes when you use both. Smart tax planning means identifying as many eligible deductions and credits as possible to minimize what you owe—and keep more money in your business.

Bonus Tip: Refundable vs. Non-Refundable Credits

Some tax credits are non-refundable—they can reduce your tax bill to zero, but not below it.

Others are refundable, which means if the credit is bigger than your tax bill, you could get the difference as a refund. While most business credits are non-refundable, refundable ones do exist (like certain clean energy or COVID-related credits).

Final Thoughts

Understanding the difference between deductions and credits gives you a major advantage when it comes to tax season. Deductions reduce your income, while credits reduce your bill—but both are essential tools in lowering your tax liability.

Want help identifying which deductions and credits you qualify for? Reach out—our team specializes in helping small businesses make tax-smart decisions all year long.

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Let’s Talk About Co-Mingling: Why It Matters More Than You Think

July 31st, 2025

We get it—when you’re building a business, the lines between you and it can feel blurry. After all, it’s your time, your effort, and your money making things happen.

But here’s the truth: when personal and business finances start to tangle, things get messier than a plate of spaghetti in a windstorm. And the IRS? They’re not big fans of financial pasta.

So let’s break it down: what is co-mingling, why does it matter, and how can you avoid the trouble it causes?

What Is Co-Mingling?

Co-mingling happens when you treat your business bank account like your personal wallet—or vice versa. A few examples we see too often:

• Paying your mortgage or utility bill from the business checking account
• Booking a family vacation on the business card and calling it “client research”
• Buying office supplies with your personal credit card, then forgetting to document it
• Transferring money between accounts with no clear paper trail

Even with the best intentions, mixing funds sends a red flag to the IRS and weakens your liability protection.

Two Major Ways It Hurts

1. Piercing the Corporate Veil

If you’re an LLC or corporation, your business is supposed to protect you—your car, your house, your personal savings—from liability. But if your finances are jumbled, a court can say, “Nope. You and the business are the same.” That’s called piercing the corporate veil, and it’s not something you want to happen.

2. Tax Trouble

The IRS doesn’t cut much slack for “oops.” If you deduct personal expenses as business ones, even by accident, they can throw out the deduction—or worse.

Examples we’ve seen:

Scenario	What the IRS Thinks
A land surveyor books a cruise on the business card	“Nice try, but that’s a personal vacation”
Buying groceries with the business debit card	“Not a business operating cost”
Claiming your dog’s vet visit as “Security expense”	“Cute, but no”

Real-World Red Flags

Want to stay safe and audit-ready? Here’s what to do:

• Keep separate bank accounts for business and personal
• Never use the business card for personal expenses (even if you plan to “pay it back”)
• Keep documentation—receipts, memos, notes on business purpose
• If you must use personal funds for the biz? Save the receipt and log it as an owner contribution
  

Cleaning It Up

So, maybe you’ve already co-mingled a little. Don’t panic. Here’s how to fix it:

• Go through your books with a fine-tooth comb
• Reclassify personal expenses properly
  (e.g. move them out of “Advertising” and into “Owner Draw”)
• Reimburse yourself if you used personal funds—or leave it in as equity
  

Final Thought

Co-mingling isn’t just a bookkeeping slip—it can cost you your credibility, your protection, and yes, your money. Clean books help you sleep better, borrow better, and sell better.

So the next time you’re reaching for the business card at the grocery store, ask yourself:

“Is this for the business—or just for dinner?”

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Employee vs. Independent Contractor

July 18th, 2025

What Every Small Business Should Know

Hiring help for your small business is a big step—but it comes with responsibilities, especially when it comes to how you classify your workers. Misclassifying someone as an independent contractor when they should be an employee can lead to penalties, back taxes, and headaches from the IRS.

In this post, we’ll break down the key differences between employees and independent contractors, why it matters, and how to get it right.

Why Worker Classification Matters

The IRS treats employees and independent contractors very differently. When you hire an employee, you’re responsible for:

• Withholding income taxes
• Paying Social Security and Medicare taxes
• Unemployment taxes (FUTA and SUTA)
• Providing W-2s at year-end

But when you hire an independent contractor, none of that applies. Instead, the contractor is responsible for their own taxes, and you typically issue a 1099-NEC if you paid them $600 or more during the year.

Sounds simple, right? Here’s the catch: you don’t get to choose how to classify someone just because it’s easier or cheaper. The IRS uses a set of rules to determine the correct classification.

The Three-Factor Test

The IRS looks at three main categories to decide whether a worker is an employee or an independent contractor:

1. Behavioral Control

• Do you tell the person when, where, or how to do their job?
• Do you provide detailed training or instructions?
  If yes, they’re likely an employee.

2. Financial Control

• Do you reimburse expenses?
• Do they use your tools or equipment?
• Do they work only for you and get paid regularly like a wage?
  If yes, they may be an employee.
  

3. Type of Relationship

• Is there a written contract?
• Do you provide benefits like health insurance or vacation pay?
• Is the relationship ongoing and integral to your business?
  If yes, it’s likely an employment relationship.

No single factor is decisive—the IRS looks at the entire relationship. When in doubt, it’s better to err on the side of caution.

Real-Life Examples

Example 1: Independent Contractor
You hire a freelance web designer to revamp your website. They use their own software and laptop, work remotely on their own schedule, and invoice you when the project is complete.

This is a true independent contractor.

Example 2: Employee
You bring on a bookkeeper to work 20 hours a week in your office, using your software, under your supervision, with a consistent paycheck.

That’s likely an employee—even if they want to be paid as a 1099.

The Risks of Misclassification

Misclassifying employees as contractors can lead to:

• IRS back taxes and penalties
• Liability for unpaid employment taxes
• State-level audits and fines
• Lawsuits for denied employee benefits

The IRS has been cracking down on this in recent years, especially with the rise of remote and gig workers. Don’t take the risk.

How to Stay Compliant

• Use written contracts. Clearly define the nature of the work and the relationship.
• Evaluate each role carefully. Don’t assume all remote workers are contractors.
• When in doubt, consult a tax professional. Or, use IRS Form SS-8 to request a determination.

Final Thoughts

Classifying workers correctly is a key part of protecting your business and your peace of mind. Taking shortcuts here might save you money now—but it can cost you far more later.

Have questions about your own worker classification or need help issuing 1099s and W-2s? Reach out—we’re here to make taxes simpler and smarter for small business owners like you.

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The 3 Business Bank Accounts Every Solopreneur Needs
for Financial Wellness

July 4th, 2025

As a solopreneur, managing money well is just as important as delivering your product or
service. And one of the most overlooked tools to support both you and your business is simple:
the right bank accounts.

Here are the three essential business accounts every solopreneur should have to build a
profitable, sustainable business—without the stress of financial guesswork.

1 – A Business Checking Account

Yes, it may seem obvious. But you’d be surprised how many solopreneurs still run their
business income and expenses through a personal checking account. At tax time, that means
extra hours (and dollars) spent by your tax preparer separating business activity from personal.
The IRS strongly discourages commingling personal and business funds. Here’s the rule of
thumb:

● W-2 income from a job? Personal income.
● Side hustle or small business income? That needs its own account.

Your business checking account is where all your business revenue is deposited. It’s also the
account used to pay business expenses, make purchases, and yes—pay yourself.

2 – A Business Savings Account for Profit

In his book Profit First, Mike Michalowicz reframes how business owners think about income:
“Your business should be profitable from day one—and you should celebrate that
fact.”

The Profit Savings account exists for just that: to set aside a small percentage of revenue (start
with 0.5% to 1%) before anything else is paid. This signals to your business—and the
universe—that profit is a priority.

A couple of times per month, transfer that small percentage from your checking to this account.
Then, every quarter, withdraw 50% of what’s accumulated to celebrate.

Not for bills. Not for taxes. Just for you. This is how a successful business feels.

3 – A Business Savings Account for Taxes

No one loves paying taxes—but it’s easier when you plan for them. In addition to sales tax or
payroll tax (if applicable), small business owners must pay:

● Federal income tax
● Social Security
● Medicare

Rather than scrambling at year-end, build this habit now: Set aside 5% to 7% of your revenue
into a dedicated Tax Savings account.

Not only will you avoid surprises come tax time—you’ll sleep better knowing it’s covered.

Bottom Line: Separate Accounts = Clearer Thinking

No matter the size of your business, the biggest gift you can give yourself is accurate financial
records and a clear picture of your money. These three accounts create a simple but powerful
structure.

Need help setting things up or just want to talk through your next step?
Call Troy for a free, non-judgmental consultation.
Let’s get started—your financial wellness matters.