Remote Accounting Service Consulting, LLC

08/05/2026

The IRS may have fewer employees in 2026 — but there are specific things on your tax return that get flagged automatically by computer systems. No human auditor required.

Here are the 6 most common automated audit triggers for small business owners and self-employed individuals:

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1. INCOME MISMATCHES
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The IRS runs an automated matching program that compares your reported income against every 1099-NEC, 1099-MISC, 1099-K, and bank transaction report filed about you by third parties. If the numbers don't match — even by a small amount — the system flags it automatically.

This is why reporting all income matters even without a 1099. Platforms report payment data to the IRS even when they don't send you a form. The IRS has the information. They are checking whether you do too.

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2. DEDUCTIONS THAT LOOK HIGH FOR YOUR INCOME LEVEL
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The IRS maintains statistical averages of what deductions look like for businesses of different types and income levels. If your deductions are dramatically higher than the norm for a business like yours — flagged.

This does not mean you shouldn't take legitimate deductions. It means every significant deduction should be documented, and if you have an unusually high deduction (large equipment purchase, major home office expense) you should have records ready to explain it.

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3. 100% BUSINESS USE OF A PERSONAL VEHICLE
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Claiming that your personal vehicle is used 100% for business and 0% for personal use is one of the most reliably flagged items on a tax return. It is almost never legitimately true — even for people who drive heavily for work.

A realistic business use percentage — 70%, 80%, even 90% for heavy business drivers — is far more defensible than 100% and far less likely to trigger scrutiny.

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4. REPEATED SCHEDULE C LOSSES
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A single year of losses happens — especially in early-stage businesses. Two consecutive years raises questions. Three or more years of consistent losses on Schedule C can trigger what is called a "hobby loss" review.

The IRS has specific rules distinguishing a legitimate business from a hobby. If your activity is classified as a hobby — you cannot deduct losses against other income. The IRS generally expects a business to show profit in at least 3 of 5 consecutive years, though other factors are considered too.

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5. HOME OFFICE DEDUCTIONS THAT DON'T ADD UP
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The home office deduction is legitimate — but it requires regular and exclusive business use of the space. The claimed square footage should be consistent with your reported home size, and the space must genuinely be used only for business.

Document your home office with photos, floor plans, and consistent use. If you also use the space as a guest bedroom or family room — it does not qualify.

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6. CASH-INTENSIVE BUSINESS WITH LIMITED DOCUMENTATION
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Restaurants, contractors, beauty professionals, event vendors, and other cash-intensive businesses face elevated automatic scrutiny regardless of IRS staffing levels. The IRS tax gap data shows a 55% misreporting rate among the most cash-intensive small businesses — which is why this category receives disproportionate automated attention.

If your business involves significant cash transactions — document everything. Daily sales logs, register receipts, bank deposits that match your reported income.

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THE BOTTOM LINE
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Fewer IRS employees does not mean fewer consequences. The automated systems work 24 hours a day. The best defense is accurate records, reported income that matches what was reported about you, and deductions that are legitimate and documented.

If any of these apply to your current situation — now is the time to address it, not in April.

📂 My bookkeeping tools to keep your records audit-ready: https://contra.com/products/fZGkCdZ5-cash-flow-and-business-finance-toolkit
📅 Want a professional set of eyes on your books? Book a call: DM me, email me (in my bio) or a drop a comment

Save this post — and share it with every small business owner and freelancer you know. 💚

Read more about Cash Flow & Business Finance Toolkit by Melanie BRAYDEN on Contra.

07/27/2026

Can you afford to hire?
One of the most common questions I hear from freelancers, content creators, and small business owners is some version of this: "I am overwhelmed with work — but I don't know if I can afford to hire help."

Here is how to think through it properly.

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STEP 1: CALCULATE YOUR HOURLY VALUE
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Before you can evaluate any hire, you need to know what your own time is worth.

Take your monthly net income and divide it by the hours you work each month. If you net $5,000/month working 160 hours — your time is worth approximately $31/hour.

This is your benchmark.

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STEP 2: THE REAL QUESTION TO ASK
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The question is not "can I afford $20/hour for an editor?" The question is: "What can I do with the hours that editor frees up — and is it worth more than $20/hour?"

If hiring a $20/hour editor frees up 20 hours per week, and those 20 hours allow you to:
- Create more content that generates revenue
- Take on new clients
- Develop new products
- Focus on business development

And the value of those activities exceeds $20/hour — the hire pays for itself.

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STEP 3: UNDERSTAND THE TRUE COST
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For a CONTRACTOR (1099 worker):
- You pay their rate
- No payroll taxes from you
- No benefits, no workers comp required
- Collect a W-9 before first payment
- Issue 1099-NEC if you pay $2,000+ in 2026
- They set their own schedule and methods

For an EMPLOYEE (W-2 worker):
- You pay their wages PLUS 7.65% employer payroll taxes
- Potentially benefits, health insurance, PTO
- Workers compensation insurance required in most states
- Unemployment insurance taxes
- Full payroll setup required
- You control when, where, and how they work

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IMPORTANT: THE IRS DETERMINES WHICH ONE APPLIES
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You cannot simply call someone a "contractor" to avoid payroll taxes. The IRS looks at the nature of the working relationship — primarily the level of control you have over how, when, and where the work is done.

If you dictate a person's schedule, require them to use your equipment and methods, and they work exclusively for you — the IRS may classify them as an employee regardless of what your contract says. Misclassification carries significant penalties.

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THE GENERAL RULE FOR SMALL BUSINESSES AND CREATORS
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Start with contractors. A video editor who works for multiple clients on a project basis, sets their own rates, and uses their own equipment is typically a legitimate contractor. This is where most creators and small business owners should begin.

Move to employees when the work becomes ongoing, full-time, exclusively for you, and you need to control their schedule and methods.

📅 Questions about your specific situation? Let's talk: Dm or email me to set up an appointment!
📂 My financial tools for small business owners: https://linktr.ee/Melanie.brayden

Share this with every small business owner you know who is thinking about their first hire! 💚

#1099

06/23/2026

Attention family content creators, mommy bloggers, and family vloggers — new laws are changing what you are legally required to track and do with your income. This is important. 👇

Several states have now passed laws specifically targeting content creators who feature their children in monetized videos. Tennessee, Illinois, California, Minnesota, and Utah have all passed similar legislation — and more states are expected to follow.

Here is the part most creators are missing:

THE LAW ONLY APPLIES IF ALL THREE OF THESE ARE TRUE:
1️⃣ You earn at least $15,000 per year from your content
2️⃣ Your child appears in 30% or more of your monetized videos within any 30-day period
3️⃣ The content is monetized

Miss even one of these three — the law does not apply to you. But if all three apply, here is what you need to know:

FOR CHILDREN UNDER 14:
They cannot appear in your monetized content at all. Tennessee carries a $2,000 penalty per violation, effective July 1, 2026.

FOR CHILDREN 14-17:
They are entitled to a portion of the earnings from content they appear in, which must be placed into a trust account accessible at age 18.

AND HERE IS THE PART NOBODY IS TALKING ABOUT:
This creates a bookkeeping requirement. You now need to track:

📊 What percentage of your content features your child — tracked by MINUTES of screen time, not just whether they appear
📊 How much income is tied to that content specifically
📊 How much needs to go into trust and when

One more important nuance — the law uses the word "appear," not "star in." A child playing in the background of a public event is generally not covered. However, whether covering a child's face protects you is a genuine gray area that has not yet been tested in court.

I created a Child Content Creator Compliance Kit specifically for this — a PDF guide that breaks down the law in plain language plus an Excel tracking spreadsheet with 5 tabs that automatically calculate your 30-day appearance percentage, track your income, and log your trust deposits.

It is the only compliance kit like this on Etsy right now. And at $22 it costs less than what one missed compliance step could cost you.

👇 Get the Child Creator Compliance Kit here:
Etsy https://www.etsy.com/listing/4526228769/child-and-family-content-creator?sr_prefetch=1&pf_from=shop_home&ref=shop_home_active_1&dd=1&logging_key=f4c0d16e431db735cb9c1378872dfb9c5cb25345%3A4526228769

Save this post and share it with every family creator you know — most have no idea these laws exist. 💚

06/04/2026

WHAT AN S-CORP ACTUALLY DOES:
An S-Corp election is where the real tax savings happen. Here's why:

As a sole proprietor or LLC, you pay self-employment tax (15.3%) on every dollar of profit. With an S-Corp, you split your income into two parts — a reasonable salary (which is subject to payroll taxes) and distributions (which are NOT subject to self-employment tax).

THE MATH:
If you make $80,000 a year from content:

As a sole proprietor — you pay SE tax on all $80,000
= roughly $11,304 in self-employment tax

As an S-Corp paying yourself $45,000 salary:
= SE tax only on $45,000
= roughly $6,358 in SE tax
= you save approximately $4,946 every single year

WHEN DOES S-CORP MAKE SENSE?
Generally when you're making $40,000 or more in NET profit from your content business. Below that, the cost of running an S-Corp (payroll, extra accounting fees) may outweigh the savings.

THE BOTTOM LINE:
✅ LLC — great for liability protection at any income level
✅ S-Corp — great for tax savings once you hit $40k+ in net profit
❌ LLC alone — does NOT reduce your tax bill

Still not sure which is right for you? That's exactly what a one-on-one consultation is for.

📅 Book a free 30-minute call and let's look at your numbers together: https://calendly.com/melanie-brayden/free-consultation


📂 Browse my financial tools for creators:
https://linktr.ee/Melanie.brayden


Save this post — and share it with a creator friend who's been asking this question! 💰

Accountant helping businesses & creators keep more of what they earn 💰

05/31/2026

Are you a content creator, influencer, podcaster, or YouTuber? 🎬

Did you know most creators leave THOUSANDS of dollars in tax deductions on the table every single year — simply because nobody told them what they could claim?

Your camera. Your ring light. Your Adobe subscription. Your home office. Your editing software. Your coaching programs. All potentially deductible.

I put together a FREE Content Creator Tax Deduction Checklist that covers every major deduction available to creators — 7 categories, professionally created by an accountant with 20+ years of experience.

It covers:
✅ Equipment & Technology
✅ Software & Subscriptions
✅ Home Office & Studio
✅ Education & Coaching
✅ Marketing & Advertising
✅ Contractors & Professional Fees
✅ Health Insurance & Retirement

Completely free. Instant download. No email required. No catch.

This is the same type of resource I give my paying clients — and you can have it today at zero cost.

👇 Download it here:
https://contra.com/melanie_brayden_ngowkfxb

Save this post and share it with any creator friends who could use it — you might save them a LOT of money this tax season! 💰

View Melanie BRAYDEN's work on Contra. The Independent-first, commission-free freelance marketplace shaping the future of work.

05/27/2026

We are almost halfway through 2026 — is your business on track financially? 📊

Right now is the BEST time to do a mid-year business financial review. Not December. Not April. RIGHT NOW — while you still have 7 months to make adjustments.

Here's what a mid-year review covers:

✅ How does your actual income compare to what you projected?
✅ Are your expenses trending where you expected?
✅ Are you on track with quarterly estimated tax payments?
✅ Are there deductions you should be capturing that you're missing?
✅ Do your cash flow projections still make sense for the rest of the year?
✅ Are there financial decisions you should be making NOW before year-end?

Most business owners wait until December to look at their numbers — and by then it's too late to change anything.

A mid-year review gives you the time to course correct, plan smarter, and avoid surprises.

I am now offering Mid-Year Business Financial Reviews — a one-on-one session where we look at your numbers together and build a clear picture of where you stand and what to do next.

This is perfect for:
🔹 Small business owners who want to know if they're really profitable
🔹 Entrepreneurs who want to reduce their tax bill before year-end
🔹 Anyone whose books feel like a mystery right now

📅 Spots are limited — book your session here: https://calendly.com/melanie-brayden
📂 Or browse my self-guided financial tools: https://linktr.ee/Melanie.brayden

Drop a ❤️ below if a mid-year review is something you need right now!

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05/25/2026

Happy Memorial Day Weekend to all my hardworking small business owners! 🇺🇸🌟

A friendly reminder from your favorite accountant:

You cannot write off your barbecue as a business expense just because you talked about work once while eating a hot dog. 🌭😄

BUT — if you hosted clients, business partners, or team members, documented the business purpose, and kept your receipt — 50% of that meal IS deductible.

See? Even the holiday cookout has tax implications. You're welcome. 😂

Drop a 🙋 below if you're a small business owner trying to enjoy the long weekend but your brain won't stop thinking about money. We see you. We ARE you.

📂 Tools to help you stay organized all year:

Accountant helping businesses & creators keep more of what they earn 💰

05/25/2026

https://tiktok.me/melaniebraydenaccounting

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