A Veteran CFO’s Assessment: What the “One Big Beautiful Bill Act” Means for Small Business Leaders
From the Desk of a 20+ Year Small Business CFO
July 10, 2025
After two decades helping small businesses navigate economic shifts—from recessions to tax reforms—I’ve learned that successful small businesses don't wait to react to policy changes. They prepare early, act strategically, and protect their position.
On July 4, 2025, a new tax bill—the “One Big Beautiful Bill Act”—was signed into law, changing the rules of the game for small to midsize businesses across the country.
Here’s what’s in the bill and what I recommend you do about it.
What You Need To Know
Unlike previous tax legislation that often rolls out slowly, the “One Big Beautiful Bill Act” is hitting the ground running with several key tax advantages for your business:
Small Business Deduction: 20% - 23% deduction of qualified business income (QBI) for pass-through entities (LLCs and S-Corporations)
Bonus Depreciation: 100% deduction for eligible equipment purchased and used after January 19, 2025
Section 179 Expensing: Deduction cap increased to $2.5 million with phaseouts starting at $4 million for equipment placed in service after December 31, 2024
R&D Expensing: Full, upfront deduction for qualifying research & development expenses starting January 1, 2025
Business Interest Deductions: Limit restored to 30% of your company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)
State & Local Tax (SALT) Deduction Cap: Temporarily raised to $40k through 2029 with a 1% annual increase. This is scheduled to reset to $10K in 2030.
Important Note
This analysis reflects current legislative standing as of July 4, 2025. Professional tax and legal counsel are strongly recommended before implementing any strategies
My Recommended CFO Strategy by Business Size
Before diving into the playbook, it’s important to understand your business’s position on the field. Your size and strategy determine your next move:
$1–$5M Revenue: Optimize cash flow and prioritize smart reinvestment. Focus on prioritizing working capital management, customer acquisition, and ensuring operational stability. Aim for 3-6 months of cash reserves, if not more.
$5–$25M Revenue: Time to scale. Consider looking at acquisitions, building deeper tax strategies, and investing in robust management systems.
$25M+ Revenue: Think Legacy. Refine succession plans, explore exit strategies, and lock in estate benefits.
Strategic Playbook: What You Should Do Now
Here’s my recommended playbook to leverage these changes effectively.
Short Term Strategy: Now Through August
Run the Numbers
Meet with your CPA to calculate how this bill could impact your business.
File Amended Estimates
If you overpaid in Q1 or Q2, you may be eligible for a refund if you file by August 15.
Check State Conformity
Not all states are running the same play. Double-check to see whether your state follows the federal playbook.
Consider Capital Moves
Assess whether planned equipment upgrades or new purchases make sense to accelerate before Q3 ends.
Revisit Your Entity Setup
Is your current business structure still the most tax-efficient for your operations? Consult with your advisor, as the new deadline to make changes is September 15.
Next 90 – 180 Days
Use Freed-Up Capital
Invest in what gives your business a competitive edge—whether that be new markets, customer loyalty, or internal tech.
Adjust Compensation Plans
Reassess owner distributions while interest rates are low
Explore profit-sharing or deferred compensation plans to support employee retention and wealth building
Consider hiring ahead of demand curves
Strengthen Reserves
Build a 3 to 9-month cash reserve
Pay down variable-rate debt
Lock in fixed-rate financing while rates are manageable
Long-Term Positioning: 2-5 Years Out
Plan for the Long Game
Update buy-sell agreements
Revisit gifting strategies for family businesses
Consider installment sales structures for eventual exits
Explore Opportunity Zones
If expansion is on your radar, consider whether designated economic development areas align with your strategy.
Build a Competitive Advantage
Reinvest tax savings into technology, internal systems, and robust customer retention programs
Develop proprietary processes and intellectual property
Key Risks to Monitor
What Keeps a CFO Up at Night
Long-Term Budget Implications: The Congressional Budget Office (CBO) estimates a $3.4 trillion increase to the national debt over 10 years. Be mindful that future tax policy could shift sooner than later.
Expiration Dates: Track timelines carefully, as some tax breaks may expire by 2028 or 2030.
Shifting Economic Conditions: Market dynamics such as interest rates or supply chain costs could shift the financial landscape.
Workforce Impact: Adjustments to healthcare assistance could affect how team members manage personal needs.
Tax Credit Adjustments: Some existing clean-energy tax credits may have been adjusted or reduced.
Closing Thought: Action, Not Reaction
Remember, what’s in place now may evolve, so it’s important to maintain a proactive approach. Act decisively, invest wisely, and position your business for long-term success. What you do in the next 12 months can significantly influence whether your business thrives or merely survives.
My Top 3 Recommendations
Stay Agile: Build flexibility into your financial plans
Prioritize Cash Flow: Make moves based on actual, not projected savings
Play Smart: This bill can be complex. Work closely with your advisors to ensure compliance and alignment with your business goals
Sincerely,
Demet Anagnos
Chief Financial Officer
My Valuable Business