What’s the difference between Tax Prep and Tax Planning?

Tax prep is prepping to file and pay your taxes, but NOTHING about lowering your taxes. You just gather all your documents, W2, K1, 1099s, etc. sometime in early spring. Your ‘tax guy’ punches the numbers into his tax software. A week later, you get a tax bill and a bill for his services.

Tax Planning – or tax strategy, same thing – is where you actually SAVE BIG. You sit down with your Tax Strategist throughout the year and make calculated decisions at the right time to minimize your taxes for that year.

Tax planning is how you pay your kids $12,000 a year tax free (2022) and also get a tax deduction for the business.

It’s how you rent your house to your business and get a tax deduction.

This is how you write off a vacation.

Tax planning is how you keep the money you worked your a** off to earn.

I already have an accountant for my business. So you do the same thing?

Yes and no. All CPAs have the same info and access to the Tax Code to do tax planning, myself included. But I’ll ask you, how many accountants and CPAs have you met that…

proactively research the tax code? meet with clients regularly throughout the year?

ensure you’re getting every deduction possible? use upwards of 200 strategies to minimize your tax burden?

Our focus on tax planning makes sure you lower your taxes significantly, permanently, and keep as much of your money as possible.

How come my accountant never told me any of this before?

Like so many good things in life, we don’t really learn about it in school. Never once in my college days or continuing education courses did we ever talk about tax planning. I learned that in the working world. And your current accountant probably went through the same process.

The other big reason is the industry just isn’t set up for it. Imagine a huge hail storm hits your city, which means everyone needs to get repaired at the same time. Well, that’s impossible. There just aren’t enough body shops to fix everyone’s car at the same time.

Same thing for taxes…everyone sees their tax guy between February 1st and April 15th. It’s simply not conducive for accountants to have sit down meetings with every client. There isn’t enough time for that.

That’s why I like Tax Planning and meeting throughout the year. Better service. No rush. And lots of tax savings.