Tax Planning vs Preparation - What You Need To Know Before The End Of The Year | Ep. 265

Tax planning is basically planning for the tax year... The tax preparation is actually the gathering of the documents... And the planning should always occur before the preparation.

• Great CPAs meet with clients 3-6 months before year-end (September-October for calendar-year filers) to review operations, profits/losses, and plan investments or retirement contributions.

If you're a business owner or a taxpayer and you get your tax bill in April... and you're surprised, someone dropped the ball.

• CPAs review profit & loss statements and balance sheets to identify tax-saving opportunities such as business build-outs, equipment purchases vs. leases, and retirement contributions.

• Decisions are personalized based on marital status, existing tax payments, and specific business goals.

No tax preparer or CPA wants to see their client walk in with a box of receipts. That is so unprofessional and so inconsiderate.

• Use QuickBooks Online for consistent documentation. Scan or photograph receipts immediately because paper receipts fade and become illegible over time.

• Employee Retention Credit (ERC)
• Electric vehicle credit
• Renewable energy / energy-efficient appliance credits
• Solar panel credit

• Search Google for "new tax credits available for [year]" or specific categories to stay informed.

• S-Corps and partnerships: March; Individuals and C-Corps: April; Texas franchise and not-for-profit returns: May. Provide your CPA adequate time—sending documents days before the deadline creates unnecessary stress and risk of errors.

The CPA is just my credential... I do anything pretty much concerning a dollar. How to save it, invest it, spend it, depreciate it, save it, hide it—anything really.

• Services often include business planning, franchise evaluation, M&A advisory, and strategic tax deferral.

You have to know and understand your threshold for a financial mistake. And if it's something you're not willing to risk, I would definitely consider investing in the services of a CPA.