Did you know that there’s a difference between tax planning and tax preparation? And that one could save you thousands of dollars in taxes?
Tax preparation is simply reviewing the year’s financial results, collecting tax documents, and preparing the tax return(s) for submission to the IRS.
Tax planning is the process of examining a person’s: life, business, regulatory requirements, and financial goals to create a personalized strategy to legally reduce taxes before year end.
Small business owners have the unique advantage of being able to utilize many more tax planning strategies than wage earning (W-2) individuals. These strategies can include employing family members in your business, contributing to retirement or health savings accounts, strategically structuring purchases, business entity optimization, and many more.
If you get the feeling that you could be doing more to proactively reduce your tax bill, now is the time to put together a personalized tax plan to reduce your taxes for 2022. Contact our office today to schedule your appointment.