What is Tax Preparation?
Tax Preparing is basically the process of compiling, preparing, and filing tax forms. This requires clients to meet with their tax accountants only once, maybe twice, a year and that too during the busy tax season.
Tax preparation deals with income and numbers from the past or that may already show up on the income tax return. The client provides the required information and the tax preparer records and tallies up the number to tell you whether or not you owe money or receive a refund and how much.
What is Tax Planning?
On the other hand, tax planning is more long term and looks into the future to better plan and benefit the client for upcoming tax returns. It’s a year-round activity which can be more time consuming and requires a higher level of engagement between the client and advisors.
With tax planning, Tax Advisors and strategic partners are able to fully analyze your past situation and advise you on how to better your future returns and become more tax efficient.
Always make sure that effective tax planning is a part of your tax process as well as tax preparation. Tax preparation gets the filing done while tax planning helps come up with ways to minimize the amount of taxes the clients have to pay.
Nearly all financial decisions have tax ramifications. Tax liabilities associated with investment, estate, gift, and real estate transactions can take a toll on your wealth. Our team of experienced professionals can create a plan to maximize tax-efficient strategies that are in line with pursuing your overall financial goals