What is Tax Preparation and Planning
When thinking of their annual tax most people focus on hiring a tax professional to submit their annual tax and then leave it at that.
While a Tax Practitioner will submit your taxes and help you remain compliant, there is a lost opportunity for many, and that is Tax Planning.
Tax planning services provide substantial savings in the long run as your financial structure is analyzed with the main focus being tax efficiency. A common misconception is that a tax preparation service would include Tax Planning. Tax planning is a separate activity altogether which requires in depth analysis of your income, expenses and long-term plans and consultation.
For new startups and Small Business Owners, the difference between Tax Preparation and Planning can be confusing and overwhelming. Understanding the difference between Tax Preparation and Tax Planning, and that these are two separate services is the first step to lowering taxes in the current and future years.
Hiring the services of Tax Preparation and Planning can save a lot of time and money if done from the onset of a start-up. Most people wait until it is too late before consulting and utilizing a professional tax preparation and planning service.
Everybody needs a Lawyer, Doctor and Accountant right? However have you considered your tax planning needs yet? If not no better time than the present.
FAQ
What is the difference between tax planning and preparation?
The main goal of Tax Preparation is to ensure compliance with tax laws and submission deadlines. The purpose of doing Tax Planning is to maximize on tax savings, rebates and minimize penalties and interest.
What does tax planning include?
Tax planning is an analysis of the financial position of the client to ensure that all elements work together to promote lower taxes. Part of the tax planning process is to consider the timing of income and purchases, their size and planning for future expenditure.
What does a Tax Preparer do?
- Calculate Tax Credits, Deductibles, and Liabilities
- Reviewing Tax reports to ensure compliance with Tax Legislation
- Answering a Client’s Tax questions
Tax Services near me? Contact Zeelie Professional Accountants SA
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