Tax Planning and Preparation

We provide exceptional compliance and planning assistance. Tax services include planning and projections, tax preparation and client advocacy during examinations or collection procedures.

Tax Preparation vs. Tax Planning

Many people assume tax planning is the same as tax preparation but the two are actually quite different. Let’s take a closer look:

What is Tax Preparation?

Tax preparation is the process of preparing and filing a Tax Return. Generally, it is a one-time event that culminates in signing your Return and finding out whether you owe the IRS money or will be receiving a refund.

For most individuals, tax preparation involves one or two trips to your accountant (preferably a CPA), generally around tax time (i.e., between January and April), to hand over any financial documents necessary to prepare your Tax Returns and then to sign them.  We can also handle these visits via video conferencing, an online portal for the exchange of documents, and electronic signature capabilities.   They will also make sure any tax reporting on your Returns comply with federal and state tax laws.  You expect them to be trustworthy, skilled in tax preparation and likewise expect them to accurately file your Tax Returns in a timely fashion.  You can count on our authenticity, confidentiality, experience, dependability, and proactive nature.

What is Tax Planning?

Tax planning is a strategic year-round process (as opposed to a seasonal event), typically performed by a CPA and accounting firm with in-depth experience and knowledge of tax law and is a separate service from tax preparation.  We help our clients align their financial goals with efficient tax planning. Both individuals and business owners can and should take advantage of tax planning services.

Examples of tax planning include bunching expenses to maximize deductions, how to use tax-loss harvesting to offset investment gains, increasing retirement plan contributions to defer income, and best timing for capital expenditures to reap tax benefits.  Good recordkeeping is also an important part of tax planning and makes it easier to pay quarterly estimated taxes, for example, or prepare Tax Returns the following year.

For businesses, planning can help optimize activities such as the timing of revenues and expenditures, identifying the least-cost, after-tax alternatives among competing accounting treatments, and avoiding counterproductive tax-related activities. The result is ensuring our clients pay their legal tax obligations and not a penny more.

If you are in need of tax preparation or are ready to learn more about strategies you can use to reduce your tax bill next year, help is just a phone call away.