Immediate Laws in Effect from the One Big Beautiful Bill Act (OBBBA): What Bookkeepers and CFOs Need to Know in 2025
The One Big Beautiful Bill Act (OBBBA) has introduced significant reforms for small and medium-sized businesses starting immediately in 2025. For bookkeeping and CFO professionals, understanding these laws is crucial to helping clients stay compliant, maximize savings, and streamline financial operations.
This post outlines the specific laws already in effect under the OBBBA, with actionable insights for bookkeeping and financial management.
Immediate OBBBA Provisions Affecting Small Businesses and Financial Professionals
1. Expanded Employee Retention Tax Credit (ERTC) Adjustments
The bill extends and enhances the Employee Retention Tax Credit through 2025, allowing businesses to claim:
Up to 30% credit on qualified wages paid to employees
Eligibility expanded to include businesses affected by supply chain disruptions and inflation impacts
Credits can now apply to wages paid during periods of partial shutdowns or reduced operations
Bookkeeping impact: Accurate payroll tracking and wage categorization are essential to maximize this credit.
2. Increased Section 179 Deduction Limits
Effective immediately, the OBBBA raises the Section 179 expensing limit to $2 million, with a phase-out threshold beginning at $2.5 million in equipment purchases.
This allows businesses to immediately deduct the full cost of qualifying business property, including equipment and software, in the year it is placed in service.
Why it matters: Businesses can accelerate depreciation deductions, improving cash flow.
CFO tip: Ensure fixed asset schedules and bookkeeping records reflect these changes to optimize tax planning.
3. Simplified Reporting for Meals and Entertainment Expenses
The Act permits a 100% deduction on business meals provided by restaurants through 2025, a continuation from previous stimulus laws, and eliminates deductions on entertainment expenses.
Businesses must clearly separate meal expenses from entertainment for compliance.
Bookkeeping note: Update expense categorization in QuickBooks or other accounting software to reflect this.
4. Mandatory E-Invoicing for Businesses Over $10 Million
As part of OBBBA’s push for digital transformation, businesses with annual revenues exceeding $10 million must begin electronic invoicing (e-invoicing) immediately.
This aims to reduce errors, fraud, and improve payment speed.
Bookkeeping and CFO action: Implement e-invoicing systems and train staff to comply with new standards.
5. Advance Child Tax Credit Repayment Relief
The bill introduces immediate relief provisions for taxpayers affected by advance Child Tax Credit repayments, including:
Expanded income thresholds for repayment caps
Simplified reconciliation processes on tax returns
Financial impact: Many families will see improved cash flow, which could affect payroll and benefits planning.
What These Immediate Changes Mean for Your Business
Compliance demands: Adjust your bookkeeping and accounting workflows now to align with new deductions and reporting rules.
Tax strategy: CFOs should re-evaluate tax projections and credit opportunities in light of expanded limits and credits.
Financial systems: Upgrade or adjust accounting software to manage e-invoicing and new expense categories.
Client advisory: Proactively inform clients about these changes to position them for maximum benefit and avoid penalties.
How Our Bookkeeping and CFO Firm Can Help
Updating your financial processes to meet OBBBA requirements
Maximizing tax credits and deductions through expert bookkeeping and financial analysis
Implementing new digital tools such as e-invoicing to ensure smooth compliance
Advising on cash flow management considering immediate legislative impacts
Stay ahead of the curve and ensure your business is fully compliant with the newest laws under the One Big Beautiful Bill Act.
Conclusion
The One Big Beautiful Bill Act introduces critical immediate changes that affect small businesses’ financial and tax landscapes. As your trusted bookkeeping and CFO partner, we’re here to guide you through these changes efficiently.