As 2026 begins, Central Alabama businesses are entering a new financial landscape shaped by sweeping legislation, technological advancement and a renewed emphasis on strategy. From major federal tax changes to evolving accounting tools, local experts say preparation and partnership are key to navigating the year ahead.
New Era for Business Taxes
The passage of the One Big Beautiful Bill Act (OBBBA) in 2025 ushered in one of the most significant updates to the tax code in recent years. According to Christine Cook, CPA, Principal and Tax Line of Business Leader at Jackson Thornton, the legislation “made permanent many Tax Cuts and Jobs Act provisions that were set to expire,” preventing what she describes as “significant tax increases for most businesses.”
Among the most impactful changes, Cook highlights the permanent 20% Qualified Business Income (QBI) deduction for pass-through entities, expanded phase-out ranges and even a new $400 minimum deduction for small businesses. “This is a huge relief for business owners who were facing the loss of this valuable deduction,” she said.
Other major provisions include the restoration of 100% bonus depreciation and the return of immediate expensing for domestic research and development costs—both of which provide crucial certainty and improved cash flow for growing companies. “The OBBBA removes the cliff that businesses were facing at the end of 2025,” Cook said. “It allows businesses to plan with confidence.”
Staying Ahead of IRS Enforcement
Cook also notes that IRS enforcement has become more data-driven than ever before. “The IRS has automated systems that cross-check filings against employer-reported W-2s, 1099s and third-party data,” she said. “Small discrepancies that might have gone unnoticed before are now being flagged automatically.” Areas of continued scrutiny include cryptocurrency compliance, foreign accounts and lingering Paycheck Protection Program (PPP) and Employee Retention Credit (ERC) issues.
Her advice: treat tax planning as a year-round process. “Tax surprises stem from poor record-keeping and waiting until the last minute,” she said. “Maintain clean books, plan quarterly and leverage technology and expertise to stay proactive.”
The Profession Behind the Numbers
For Megan Hughes, Vice President of Operations & Communications for of the Alabama Society of CPAs, the changes of the past few years underscore the vital role accountants play in guiding businesses through uncertainty. “Our profession is in a time of tremendous transformation,” Hughes said. “Technology is reshaping how we deliver services and the types of skills that are in demand. But these challenges also present opportunities—CPAs are uniquely positioned to lead because of the trust and credibility their credential represents.”
Hughes says the Society’s mission is to ensure CPAs across Alabama have the advocacy, education and community support they need to thrive. “We advocate on behalf of our members at both the state and national levels,” she said. “Beyond advocacy, we provide resources that help our members stay ahead in a rapidly changing business environment.”
She adds that accountants’ impact extends far beyond spreadsheets. “Accounting is grounded in numbers—but the real story lies in what those numbers mean,” Hughes said. “CPAs are trusted advisors who help businesses make informed decisions, drive growth and ensure integrity in financial reporting.”
A Focus on Financial Flexibility
At Warren Averett, Cristy Andrews, Principal, says that the most effective financial strategies for 2026 focus on flexibility and foresight. “Make sure your cash flow is solid, look for ways to automate routine tasks and set your budget to match your biggest priorities,” she said. “With thoughtful planning, the right financial tools and a disciplined approach to spending, your business will be well-positioned for steady, long-term growth.”
Andrews sees a clear shift in how businesses use financial data. “To support long-term growth, business owners should make sure their accounting practices go beyond just tracking expenses,” she said. “Use real-time financial data to help you make smart decisions, and put systems in place that can scale as your business does.”
Technology plays a key role in this evolution. Andrews recommends cloud-based tools for real-time reporting and automation, from invoicing to expense tracking. “Real-time visibility into financial performance is key to staying agile and competitive in today’s market,” she said.
Andrews also notes that the accountant’s role is changing. “At Warren Averett, our commitment goes beyond traditional compliance—we serve as trusted advisors,” Andrews said. “While staying compliant is always important, the real value comes from focusing on strategy, planning for growth and managing your business proactively.”
Building Relationships and Results
Despite evolving regulations and economic uncertainty, Alabama’s accounting leaders remain optimistic about the region’s business climate. “What we enjoy most about working with businesses in the River Region is the strong sense of community and collaboration,” Andrews said. “There’s a genuine commitment to helping each other grow, and we’re proud to be part of a region where relationships matter just as much as results.”
Andrews’ advice for new entrepreneurs starting in 2026? “Build a strong financial foundation early and don’t wait until tax season to talk to your accountant,” she said. “Focus on long-term strategy, not just short-term wins, and surround yourself with advisors who understand your business.”
A Picture of the Future
As for the year ahead, Cook believes inflation and interest rates will continue to shape the financial landscape. “We’re likely entering a period of moderate but persistent inflation,” she said, “which means businesses need to plan for higher wage pressure and borrowing costs for longer than expected.”
All three experts agree: success in 2026 will come down to preparation, adaptability and partnership. From staying compliant to embracing technology and maintaining strong relationships with trusted advisors, businesses that plan ahead will be best equipped to thrive in the new year.
Top 5 Takeaways for 2026 Planning
1. Plan Year-Round, Not Just at Tax Time
“Tax surprises stem from poor record-keeping and waiting until the last minute,” said Christine Cook, CPA. Maintain clean books, track deductions and schedule quarterly planning sessions.
2. Leverage New Tax Law Benefits
The One Big Beautiful Bill Act made permanent many TCJA provisions, including the 20% QBI deduction, 100% bonus depreciation and immediate R&D expensing. These provisions provide cash flow and planning certainty for businesses of all sizes.
3. Embrace Technology & Automation
“Real-time visibility into financial performance is key,” said Cristy Andrews, Warren Averett. Cloud-based tools, automated workflows and AI-assisted reporting help businesses stay agile and competitive.
4. Focus on Strategic Growth, Not Just Compliance
CPAs are evolving into strategic advisors. As Megan Hughes, Alabama Society of CPAs, notes: “CPAs help businesses make informed decisions, drive growth and ensure integrity in financial reporting.”
5. Build a Strong Financial Foundation & Team
Start early, align accounting practices with long-term goals, and work closely with advisors. Andrews recommends reviewing budgets, cash flow, pricing and team capabilities in Q1 to set your business up for success.
