Federal and state income taxes can consume between 35% and 50% of our clients’ annual income. Yet many of them have never had proactive, tailored tax planning.
Tax preparation looks back
Preparation records what already happened. By the time a return is prepared, the year is over and most of the decisions that shaped your tax bill are already made. A good preparer files accurately, but there is little left to change.
Tax strategy looks ahead
Strategy is ongoing and proactive. It is designed to reduce your tax bill before it is due, by reviewing the decisions that drive it while you can still act on them:
- How your business is structured, and whether that structure still fits your income
- Which deductions and credits you qualify for, documented properly
- When income is earned and how it is allocated
- How retirement contributions and benefits fit the plan
- How real estate, depreciation and major purchases are timed
What we find when we look
Each year we review business tax returns from prospective clients, and most of them contain errors or overlook meaningful tax-saving opportunities. That is rarely anyone’s fault. It is what happens when taxes are handled once a year instead of planned all year.
Do you have to choose?
No. You don’t have to switch accountants. We collaborate with your CPA and focus on planning and savings. If you would like one team to handle both, tax preparation is included in our Builder and Holistic Planning packages.
This article is general and educational. It is not personalized tax, legal or investment advice, and tax rules can change. Individual circumstances vary.
