Come tax time most of us think that by hiring a professional to prepare our tax return that we will save the most amount of taxes. However, there is a way to save even more — through tax planning. A common misconception is that tax planning and tax preparation are the same, however they are technically two different services. The experts at CPA Accounting & Tax Services outline the difference between Tax Planning and Tax Preparation so you can make informed decisions regarding your tax strategy.
Tax planning is a comprehensive service that helps you optimize your tax situation before filing. With tax planning, you set goals for the long term and you work with an expert that is experienced in tax laws and various aspects of knowledge other than filing. The purpose is to use legitimate ways to optimize your potential tax obligations based on your plans and goals for the future. This type of holistic approach to your managing your finances ensures you get proactive tax planning advice from setting goals and finding the hidden savings to deductions, tax credits, taking advantage of loopholes and retirement planning. Tax planning is ideal for people who own a business with payroll expenses of at least $50,000 and income of at least $50,000.
Tax preparation service is a service that helps you file your tax returns. The main goal is to make sure your tax reporting complies with both federal and state tax laws. Tax preparation provides basic guidance based on the information that you provide to your tax preparer with the focus usually being solely on the tax year you are filing. Some professional tax preparers may give you general tax guidance and tax savings advice based on your tax returns for recent years. Or they may simply just answer tax-related questions upon your request.
Proper Tax Planning can save you thousands. Contact the professionals at CPA Accounting & Tax Services to help guide you through tax season and beyond. We specialize in Business Accounting Services, Individual Tax Services, International Tax Services, Tax Planning and Tax Resolution Services. We have offices in Orlando, Florida and service clients worldwide. Find out how we can serve all of your accounting needs by contacting us today: www.cpaaccounting.biz