Talking Taxes: A Small Business Perspective

For many entrepreneurs, tax planning has become increasingly tied to broader business strategy. From managing cash flow and making equipment investments to structuring a business for long-term growth, understanding the tax code can directly affect a company’s ability to scale and stay competitive. 

In a conversation at CO—’s 2026 Small Business Day, Kris Thiessen, Senior Partner of Tax and Advisory at Block Advisors by H&R Block, talked about the tax provisions small business owners should be paying close attention to in 2026. Throughout his conversation with Jeanette Mulvey, Vice President and Editor-in-Chief of CO—, Thiessen highlighted recent tax law changes that could benefit entrepreneurs and emphasized the importance of proactive, year-round tax planning.

Why tax planning should be part of business strategy

Thiessen, who works directly with small business clients through Block Advisors, said many entrepreneurs make the mistake of viewing taxes only as a filing requirement rather than as a strategic tool for growth.

“I’ve come to view the tax code as a strategic tool to help small business owners grow their business and help you grow your net worth,” Thiessen explained.

He explained that Block Advisors focuses not only on preparing and filing tax returns but also on helping small businesses plan ahead by evaluating future tax implications, business structures, and investment decisions. 

“We try to … translate the tax technical into presentable business decisions so you can make the right decision for you,” said Thiessen.

[Read more: 12 Money-Saving Tax Strategies for Small Business] 

Newly permanent and expanded tax regulations could improve business planning and cash flow

Thiessen highlighted the One Big Beautiful Bill (OBBB) of 2025 and the tax changes it made permanent for small businesses. Specifically, he mentioned the qualified business income (QBI) deduction, which allows many small business owners to deduct up to 20% of their business income from their taxable income.

“Permanent is magic when it comes to planning,” Thiessen said, explaining that business owners can now make longer-term financial decisions with greater confidence.

Thiessen also discussed how the legislation restored and expanded immediate expensing opportunities for businesses investing in equipment and property improvements. The updated rules increased Section 179 expensing thresholds and brought back 100% bonus depreciation, which lets you deduct the full cost of qualifying purchases in the year they are made rather than spreading deductions over multiple years. 

For small businesses, Thiessen said, this can significantly improve cash flow and reduce the after-tax cost of investing in long-term business assets like vehicles, computers, machinery, and leased-space improvements.

“Immediate expensing for more of those depreciation items … [keeps] more cash flow in your pocket,” he noted. “If you haven’t had a chance to work with your tax advisor to think about making those investments sooner, now’s a great time to do it.”

Businesses may qualify for overlooked R&D deductions

Many small business owners mistakenly assume that research and experimentation expensing (commonly referred to as R&D deductions) only applies to large corporations or scientific research labs, said Thiessen. In reality, many activities involving product development, process improvements, software creation, or uncertain outcomes may qualify.

The OBBB restored the ability to immediately deduct domestic research and experimentation expenses instead of amortizing them over several years. Importantly, businesses may also be able to retroactively amend previous tax returns from 2022 through 2024 to recover deductions they were previously unable to claim.

However, Thiessen noted that the July 2026 deadline to take advantage of some retroactive provisions is approaching quickly and encouraged business owners to review prior returns with a qualified tax professional.

[Read more: Don’t Miss These 6 Small Business Credits and Deductions in Your Taxes] 

‘Have a system that works for you’

Thiessen closed the conversation with a reminder that one of the biggest mistakes small businesses make has nothing to do with complicated tax law at all: poor recordkeeping.

“Make sure you have a system that works for you,” Thiessen said, encouraging new entrepreneurs to separate business and personal expenses and maintain organized financial records throughout the year. 

“As you grow, working with a bookkeeper or bookkeeping firm … [is] the No. 1 thing that makes a difference and reduces that stress level around tax time,” he added.

CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.