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What Business Owners Need to Know About the New Overtime Deduction Under the OBBBA

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The One Big Beautiful Bill Act (OBBBA) introduces a temporary but potentially impactful tax benefit for employees and indirectly, for employers who want to support their workforce and stay compliant. One key update is a new deduction for overtime pay, which could influence how businesses approach compensation and year-end tax planning.

What Counts as Deductible Overtime?

This isn’t a blanket deduction for all overtime wages. Under the OBBBA, only the premium portion of overtime pay qualifies. That means the extra amount paid above the standard hourly rate defined by the Fair Labor Standards Act (FLSA) is deductible.

  • Example: If your employee earns $40/hour normally and $55/hour for overtime, only the $15 premium per overtime hour is eligible for the deduction not the full $55.
  • This distinction matters for payroll reporting and employee education. Misunderstanding it could lead to inaccurate tax filings or missed opportunities.

Deduction Limits and Income Thresholds

The deduction isn’t unlimited. Here’s how it breaks down:

Filing Status Maximum Deduction
Single $12,500
Married Filing Joint $25,000

 Temporary Window: 2025–2028

This deduction is only available for tax years beginning in 2025 and ending after 2028. That gives a four-year window to take advantage of it. Business owners should:

  • Inform employees about the benefit
  • Adjust payroll systems to track premium overtime accurately
  • Coordinate with tax professionals to ensure proper documentation and planning

Strategic Takeaways for Your Employers

  • Educate your team: Employees may not understand that only part of their overtime pay qualifies. Clear communication helps avoid confusion.
  • Review compensation structures: If your business relies heavily on overtime, this deduction could be a selling point for recruitment and retention.
  • Plan ahead: Since this is a temporary provision, consider how it fits into broader compensation and tax strategies over the next few years.

If you have any questions, solidCore CFO is here to help.   We are experts in business financial health and work with many CPAs and tax advisors.

Great Growth? That Might Be Your Sign to Exit on Top

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When Your Business Is at Peak Value, It Might Be Time to Let Go

Many business owners wait too long to consider selling their company—often holding on until revenues dip or growth flattens. But the most strategic time to sell is actually when your business is thriving. When everything is firing on all cylinders—revenue, operations, customer loyalty, and market position—you’re in the perfect spot to command top dollar.

Buyers Want Momentum, Not Maybes

Today’s buyers aren’t just looking for good ideas or potential—they’re investing in performance. Businesses with strong financials, reliable recurring revenue, and healthy customer relationships are more likely to attract serious, qualified buyers. A business that’s already succeeding removes much of the risk from an acquisition, making it more attractive and valuable in a competitive marketplace.

Stable Cash Flow Is King

Cash flow tells a deeper story than profit alone. Buyers want proof that a company can meet its obligations, invest in growth, and weather storms. If your business demonstrates predictable, stable cash flow—and you’ve been diligent with financial records—you’re already checking one of the top boxes on a buyer’s wish list.

Customer Base & Brand Loyalty Matter

A diversified and loyal customer base signals sustainability. If your business relies heavily on just a few clients, that’s a red flag to potential buyers. On the other hand, a well-balanced base with repeat business, high satisfaction, and brand loyalty proves your company isn’t just a flash in the pan—it has staying power.

Low Debt, High Discipline

Debt isn’t necessarily a deal-breaker, but buyers prefer businesses with minimal liabilities. Low debt reflects financial discipline and strategic decision-making. It also gives new owners a stronger foundation from which to grow. If your business has achieved growth without being weighed down by debt, now might be the golden window to exit.

Your Competitive Edge Is a Selling Point

In crowded markets, differentiation is everything. Whether it’s your technology, service model, team culture, or market share—your unique value proposition increases your negotiating power. If you’re currently leading the pack or disrupting your industry niche, your business could fetch a premium from buyers looking to expand or diversify.

Timing Can Be Everything

Just like in real estate, the best time to sell is when your property—and the market—are at their peak. Selling a business is as much about strategy as it is about emotion. It can feel counterintuitive to consider selling when you’re doing well, but that’s precisely when buyers will pay a premium for what you’ve built.

solidCore CFO: Your Trusted Exit Strategy Partner

If you’re wondering whether now is the right moment to sell, solidCore CFO is here to help. We provide clear-eyed financial assessments, help you uncover hidden value drivers, and guide you through the entire sale process with precision and expertise. Don’t leave opportunity on the table—let’s talk about what your business is really worth today.

Delegating Financial Responsibilities

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Running a successful business requires vision, strategy, and execution. But for many CEOs, financial management can become all consuming, pulling them away from high-impact leadership tasks. The truth is—you don’t need to track every number yourself. Instead, the key is delegation.

Define Critical Metrics & Delegate Wisely

CEOs should establish key metrics and KPIs that drive their business goals. Once those priorities are clear, financial responsibilities can be confidently assigned to capable team members. Here are some pointers:

  • Fractional CFO, CFOs, controllers, and accountants can manage financial statements, track cash flow, and ensure compliance.
  • Managers in different departments should be empowered to monitor relevant financial data that impacts their areas.
  • CEOs can focus on big-picture trends, high-level decision-making, and long-term investments.

The Balance of Trust & Verification

Delegation is powerful, but it requires a strong foundation.  Financial oversight must include clear systems, accessible data, and well-defined reporting structures to prevent issues like data manipulation or employee fraud and embezzlement.  By fostering transparency and accountability, CEOs can ensure ethical financial practices without being buried in the details.

Lead Smarter, Not Harder

CEOs should spend their time steering the business forward, not drowning in spreadsheets. By strategically delegating financial responsibilities, leaders can focus on growth, innovation, and decision-making—without losing sight of financial health.

Is it time to shift your approach to financial management?  solidCore CFO works with busy owners to help them adjust their financial position, improve cash flow, scale the business and improve value.

Preventing Embezzlement in Your Business: Strategies for Protection

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Embezzlement is a serious financial crime that quietly drains companies of their hard-earned assets. Often occurring under the radar, it can devastate businesses—especially small and mid-sized organizations that lack the internal controls necessary to detect fraud early. Many business owners assume their team members are trustworthy, yet statistics reveal that embezzlement is alarmingly common across industries.

The Reality of Embezzlement

Embezzlement happens more often than many people think. According to the Association of Certified Fraud Examiners (ACFE), businesses lose approximately 5% of annual revenue to fraud. Small businesses, particularly those with fewer financial oversight controls, are the most vulnerable—accounting for 28% of all fraud cases. Shockingly, the average embezzlement scheme lasts around 14 months before detection, leading to significant financial distress.

Who does it impact the most?

  • Small and medium-sized businesses with limited financial oversight
  • Nonprofits that rely on donor funding and often lack strict financial controls
  • Privately owned companies where a single individual may oversee financial management
  • Entrepreneurs and family-run businesses, where personal relationships can blur professional accountability

Financial distress due to embezzlement can result in layoffs, legal consequences, broken trust, and even business closure. That’s why proactive prevention is critical.

Best Practices to Prevent Embezzlement

1️⃣ Establish Strong Internal Controls Ensure segregation of duties, meaning no single person should handle financial transactions without oversight. Having multiple layers of verification prevents unauthorized fund transfers.

2️⃣ Conduct Regular Audits Routine internal and external audits create transparency and uncover inconsistencies before they escalate. Independent financial reviews safeguard against fraudulent activity.

3️⃣ Implement a Checks and Balances System No one person should control payments, bookkeeping, and financial reporting. Divide these responsibilities among multiple employees to reduce the risk of fraud.

4️⃣ Use Secure Accounting Software Leverage automated accounting solutions that provide real-time oversight, encrypted financial transactions, and fraud detection features.

5️⃣ Monitor Employee Behavior Warning signs of embezzlement often include:

  • A sudden change in an employee’s financial situation
  • Unwillingness to share financial records or accounting data
  • Excessive control over financial transactions
  • Complaints about audits or oversight

6️⃣ Encourage Whistleblower Reports Create a safe reporting system where employees can anonymously flag suspicious activity. Many cases of fraud are uncovered because of employee reports—having a culture of transparency is key.

7️⃣ Partner with Financial Experts Professional guidance can protect your business from financial fraud. solidCore CFO provides strategic financial oversight, customized financial controls, and risk assessment solutions to help companies safeguard their assets.

solidCore CFO: A Trusted Partner in Preventing Embezzlement

Business owners cannot afford to ignore the risk of financial fraud. At solidCore CFO, we help companies develop fraud prevention strategies, conduct audits, and implement accountability measures to ensure financial integrity. Our team works closely with business owners to identify vulnerabilities and build defenses against fraud.

Don’t let fraud cripple your business—take proactive steps today.  Visit us at solidCoreCFO.com to start a conversation.

Steps to Overcoming Supply Chain Disruptions with Your Fractional CFO

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Key Considerations for Financial Planning

Today’s business world, supply chain disruptions have become one of the most significant challenges organizations face. From delays and bottlenecks to rising costs and unexpected risks, these disruptions can jeopardize operations, erode profitability, and hinder growth. To combat these obstacles, businesses need more than reactive measures—they need proactive, strategic financial planning.

At solidCore CFO, we understand that navigating these complexities demands agility, foresight, and a collaborative approach. Here’s how your fractional CFO can drive your business forward and safeguard its supply chain operations:

1. Build Resilient Supply Chains

  • Diversify Suppliers: Relying on a single supplier or region leaves your business vulnerable to disruptions. Fractional CFOs collaborate with procurement teams to identify and onboard multiple suppliers across different geographies, ensuring continuity even in the face of regional instability.
  • Leverage Technology: Emerging technologies like AI and blockchain are game-changers for supply chain resilience. They enable real-time tracking, enhance transparency, and offer predictive insights to address risks before they escalate.

2. Strengthen Cash Reserves

Supply chain challenges often require immediate financial flexibility. Your fractional CFO will help you build and maintain robust cash reserves, ensuring your business can handle unexpected expenses, seize opportunities, and maintain operations without compromise.

3. Scenario Planning and Stress Testing

Disruptions are unpredictable, but preparation is key. Fractional CFOs create multiple financial scenarios to simulate potential supply chain risks. Through stress testing, they identify weaknesses in your financial framework and develop actionable contingency plans tailored to mitigate these risks.

4. Foster Cross-Functional Collaboration

Supply chain resilience goes beyond logistics—it’s a shared responsibility across departments. Your fractional CFO will act as a bridge between operations, procurement, and sales teams, aligning financial strategies with supply chain initiatives to create a cohesive, company-wide approach to resilience.

5. Explore Insurance and Hedging Strategies

Fractional CFOs evaluate insurance options, such as business interruption coverage, to safeguard against supply chain-related losses. Additionally, hedging strategies can protect your business from volatile commodity prices, currency fluctuations, and other economic uncertainties that could impact your supply chain.

At solidCore CFO, we go beyond traditional financial planning by addressing the intricate interplay between finances and supply chain operations. Our approach integrates technology, expertise, and collaboration to help your business build resilience, adapt to uncertainty, and achieve long-term success.

Whether it’s optimizing cash flow, developing contingency plans, or leveraging innovative tools, our fractional CFOs are here to guide your business through the complexities of supply chain disruptions with confidence and clarity. Let’s partner to create a solid financial foundation that empowers your business to thrive in any environment.

Building a Financial Dream Team for Your Business

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When it comes to running a business, a solid financial team is like the backbone of your success. But figuring out who does what—CFO, Controller, Bookkeeper, Accounting Associate—can feel overwhelming. So, let’s break it down and help you see how each role contributes to a thriving business.

  • Accounting Associate: They’re your data wizards, keeping records organized by processing invoices, tracking payments, and ensuring everything is up-to-date.
  • Bookkeeper: Think of them as financial storytellers, classifying transactions correctly to ensure your records actually reflect reality. No missteps here!
  • Controller: The watchdog of your general ledger, reconciling accounts and making sure every transaction is recorded accurately. They make sure your reports are solid!
  • CFO: The strategist with a crystal ball. CFOs focus on the bigger picture—cash flow, policies, and future planning—to guide your business forward.

Why a Growth-Minded Company Needs a CFO—Even on a Fractional Basis

For companies with a growth mindset, success begins with a strong financial foundation. While many businesses start by hiring a bookkeeper and building their financial team gradually, this approach often leads to inefficiencies and costly errors. Assigning tasks beyond an employee’s skillset—such as expecting a bookkeeper to handle advanced accounting duties—can lead to errors, improper classifications, and mistakes that can have negative implications.

That’s why hiring a CFO, even on an as-needed or fractional basis, can be a game-changer. A CFO brings strategic expertise to the table, helping you assess your current financial systems, identify potential gaps, and ensure that everyone on your team is set up for success. From implementing accurate procedures to laying the groundwork for growth, a CFO positions your company to thrive by aligning your financial operations with your long-term goals.

Here’s a pro tip: While it’s tempting to start at the bottom and build up, bringing in a CFO early (even for a consultation) can prevent costly missteps. They can help set up smart systems and make sure your team is set up for success right from the start.

With the right financial team and expertise, your business can thrive—because solid finances mean more opportunities and less stress. At Solidcore CFO, we specialize in providing tailored fractional CFO services to help businesses like yours achieve more. By starting with a consultation, you can avoid the pitfalls of building from the bottom up and create a financial team that supports your vision and drives results.

Is Your Business Ready to Sell? Here’s How to Find Out

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Selling your business is a big step, and making sure it’s ready is essential. Here’s a quick, friendly guide to help you assess and prepare your business for a successful sale:

  1. Operational Independence:
    • Your business should run smoothly without your daily involvement. This means having the right team, systems, and processes in place. If the business can’t operate without you, it’s not ready to be sold.
  2. Profitability:
    • Your business needs to be profitable and meet industry standards. Evaluate your financials and find ways to increase profitability if needed. A profitable business is more attractive to potential buyers.
  3. Industry Factors:
    • Consider how your industry affects your business’s value. Industry standards for profitability, valuation, and sale price play a significant role in determining your business’s readiness for sale.

Preparing for the Sale:

  • Delegate responsibilities to ensure the business can function without you. Focus on leadership and strategy while your team handles daily operations. Ensure a smooth transition by having a strong second-in-command and committed team members who will stay with the new owner.

Start Today:

  • Evaluate your business’s readiness and take steps to address any gaps. By doing so, you’ll maximize your company’s value and ensure a successful sale.

You’ve poured so much into growing your business, and now it’s time to reap the rewards of your hard work, dedication, and investment. To set yourself up for success and maximize the sale price of your company, start by assessing how saleable your business is today.  We hope these questions help you to evaluate your business’s current state and identify any areas that need improvement. By doing so, you’ll be well on your way to preparing your business for a successful sale.

Why Would a Business Need a Fractional CFO in 2025?

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In an era of economic uncertainties and rapid changes in the business landscape, having access to high-level expertise without long-term commitment is more crucial than ever. Fractional CFOs offer a flexible, cost-effective solution, allowing businesses to benefit from seasoned financial leadership on an as-needed basis.

Kick-Start the Search Process

For companies in need of fractional executives, it’s essential to define your needs and goals. This clarity will help you narrow down your search and find someone who can provide the specific expertise and support you require. Plus, it helps if your personalities, visions and communication styles align.

However, finding the right talent can be challenging. Seek professionals with relevant experience and a proven track record of success, ideally within your industry. This ensures they have the necessary skills and expertise to help your business grow.

Networking and referrals can be invaluable in your search for a fractional executive. Reach out to your professional network for recommendations, and consider asking other business owners in your industry for referrals.

Benefits of Hiring a Fractional CFO Business Advisor:

  • Cost Savings: Pay only for the time and expertise you need.
  • Flexibility: Adaptable to your business’s changing needs.
  • High-Level Expertise: Access seasoned financial leadership without a long-term commitment.
  • Fresh Perspective: Gain new insights and ideas to overcome challenges.
  • Unbiased Opinions: Objective advice without internal politics.
  • Strategic Guidance: Expert support in financial planning, budgeting, forecasting, and exit planning.
  • Vast Network: Connect with potential partners, investors, and professionals through their extensive contacts.

At Solid Core CFO, we specialize in providing CFO and business advisory services to help growth-minded businesses achieve their goals. As a fractional executive, Linda Hammons works closely with clients to identify growth opportunities, streamline processes, and optimize financial performance. Whether you need assistance with financial planning, budgeting, forecasting, or exit planning, we can provide the guidance and support you need to succeed.

Contact us to learn more about how we can help your business thrive.

Charting a Bold Path in 2025: Elevate Your Leadership

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Wishing you a Happy New Year! If you’re a business owner, you probably have big dreams for 2025. As the visionary of your company, how are you equipping yourself to lead with purpose and intention in the year ahead? Reaching those goals can be daunting. Here are some goals to put on your leadership radar this year:

  1. ✅ Help My Leadership Team Collaborate Effectively

Implement structured governance frameworks to break down barriers between departments. Set a consistent schedule for high-impact strategy meetings distinct from daily operational discussions. This will ensure alignment and promote cross-functional teamwork.

  1. ✅ Elevate Your Strategic Role in Sales

Focus your efforts on unlocking strategic opportunities in sales. You shouldn’t—and can’t—be the sole rainmaker. Instead, mentor your team to scale the sales process while you stay engaged in critical, high-impact moments, such as with key customers or pipeline reviews to ensure alignment with target goals.

  1. ✅ Reconnect with Customers

Immerse yourself in the customer experience. Gain insights into what’s working, identify areas for improvement, and actively engage with customer feedback to stay attuned to the market’s realities.

  1. ✅ Enhance Decision-Making for People Management

Many CEOs regret keeping the wrong people in pivotal roles for too long. Refine your talent assessment process and make swift, decisive actions to ensure you have the right people in the right positions.

  1. ✅ Make to Retreat

Even the most dedicated leaders need time to recharge. Plan meaningful breaks to maintain your energy, creativity, and resilience. Remember, it’s not just a luxury—it’s essential for effective leadership.

6. ✅ Promote a Positive Work Culture

Cultivate a culture that values teamwork, innovation, and employee well-being. A positive work environment enhances productivity and employee satisfaction.

Reflect on Your 2025 Goals

As you set your personal development goals for the new year, consider these questions:

  • How are you spending your time? Are you investing enough in strategy, leadership, and culture?
  • What do you want to focus on more? What should you reduce?
  • Are you leveraging your strengths, or inadvertently becoming a bottleneck?
  • Are you empowering your team with the support, clarity, and alignment they need?
  • How is your energy? What recharges you and fuels your best leadership?
  • How is your health? This job can be demanding. What changes do you need to make this year to take better care of your mind and body?

Driving Strategic Success: How Fractional CFOs Enhance Executive Board Functions

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Fractional CFOs bring unparalleled expertise and support to the executive board, contributing across various functions such as finance, HR, marketing, operations, risk management, compliance, and more. Despite their part-time or project-based roles,  fractional CFOs are fully committed to your organization’s success and your people. Here are a few key ways they can make a difference:

Strategic Financial Guidance

  • Financial Strategy and Planning: Offer expert financial analysis and forecasting to help the executive board make informed strategic decisions. Assist in developing financial goals, budgeting, and long-term planning to ensure financial health and sustainability.
  • Risk Management: Conduct risk assessments and implement risk management strategies to mitigate financial risks. Identify potential threats and propose solutions to protect the company’s assets and investments.

Operational Excellence

  • Cost Optimization: Analyze the cost structure and identify opportunities for cost optimization and process efficiency improvements. Review expenses, negotiate contracts, and implement cost-saving initiatives to enhance profitability.
  • Financial Reporting and Compliance: Ensure accurate, timely, and compliant financial reporting. Oversee financial audits, ensure compliance with accounting standards, and provide guidance on best practices for financial reporting.

Cash Flow and Capital Management

  • Cash Flow Management: Develop cash flow projections, optimize working capital, and implement cash management strategies to maintain liquidity and pursue growth opportunities.
  • Capital Planning and Funding: Assist in capital planning and securing funding for strategic initiatives. Evaluate financing options, structure capital investments, and establish relationships with lenders or investors to support growth objectives.

Governance and Cross-Functional Collaboration

  • Financial Governance and Controls: Establish and maintain robust financial governance frameworks and internal controls to safeguard assets and prevent fraud or financial mismanagement. Implement policies and procedures to ensure regulatory compliance and promote transparency and accountability.
  • Cross-Functional Collaboration: Collaborate with other executive board members, aligning financial objectives with overall business goals. Provide financial insights and support decision-making across functional areas to drive success.

By leveraging solidCore CFO expertise in finance and business strategy, your company can enhance the executive board’s effectiveness and contribute significantly to your organization’s overall success.  We are here to help. Start the discussion today, https://solidcorecfo.com/#contact