Taxes should never be something you think about after the fact. For people and business owners who want to be financially stable in the run planning your taxes carefully is one of the best tools you can use. This is different from doing your taxes at the end of the year which is just about reporting what you did in the past. Planning your taxes is about being proactive and making financial decisions all year round to pay as little tax as possible while still following the law.
At E.E. Accounting Solutions LLC, Edith Alvarado who is a CPA leads our team. We help our clients plan their taxes in a way that is personalized and based on analysis not just guessing. Our goal is to help you follow the rules and make the most of your money.
So what is tax planning anyway? It is a process where we look at your income, expenses, investments and long-term goals to find ways to reduce your tax bill that're legal. Of just waiting to see how much tax you owe we help you plan ahead and make smart decisions about your money.
With tax planning you can do things like:
- Think about what your tax bill will be year
- Find deductions and credits before the year is over
- Make sure you are getting your income in a way that saves you tax money
- Put as much as you can into your retirement account
- Make decisions about how you get paid
- Get a better idea of how much cash you will have on hand
This way of planning helps you understand what is going on and avoids surprises.
Why is it important to plan all year ? A lot of people only talk to their accountant when it is time to do their taxes.. By then it is usually too late to make a big difference in your tax bill. If you plan all year round you can do things like:
- Make sure you are paying the amount of tax
- Time your income and expenses in a way that saves you tax money
- Plan big purchases carefully
- Think about how you get paid
- Make decisions about growing your business
This way you can make intentional decisions instead of just reacting to things.
Who benefits the most from tax planning? It is especially helpful for:
- Medium-sized business owners
- People who work for themselves
- Real estate investors
- People who make a lot of money
- Companies that are growing and might need to change how they are set up
- People who are getting ready to retire
If your income is up and down your business is growing or your financial situation is getting more complicated planning your taxes carefully becomes really important.
Our approach to tax planning is led by a CPA. Involves a thorough review of your financial situation. We look at your past your projected income and your long-term goals to create a plan that's just for you. Our process usually includes:
- Reviewing your tax records
- Thinking about your income and expenses
- Looking at how your business set up (if that applies)
- Finding ways to optimize your retirement savings
- Reviewing your estimated tax payments
- Giving you advice and support all year round
Every recommendation we make is based on following the tax laws and professional standards.
There are areas where tax planning can make a big difference, including:
- Making sure your business is set up in the best way
- Managing your cash flow
- Putting money into your retirement account
- Planning for capital gains
- Making estimated tax payments
Frequently Asked Questions
1. Is tax planning for big businesses?
No. While big companies often plan their taxes carefully small business owners and individuals can benefit a lot from planning especially if their income is complicated or changing.
2. How is tax planning different from doing your taxes?
Doing your taxes is about filing your return based on what you did in the past. Tax planning is about making smart decisions to affect what your tax bill will be in the future.
3. When should I start planning my taxes?
It is best to start at the beginning of the year and review your plan regularly.. It is never too late to start making changes for the current year.
4. Can tax planning eliminate my tax bill?
No. Tax planning is about finding ways to reduce your tax bill not eliminating it.
5. How often should I meet with my accountant to plan my taxes?
It depends on how complicated your situation's. Business owners might need to meet while individuals might only need to meet once or twice a year.
6. Is this service okay with the IRS?
Yes. All of our planning is based on following the IRS rules and regulations.
Why choose E.E. Accounting Solutions LLC? Choosing the accountant is important. Tax planning requires knowledge, an understanding of the rules and the ability to think ahead. Edith Alvarado, who is a CPA leads our team. Provides:
- Expert tax advice from a CPA
- Support in both English and Spanish
- planning
- Ongoing. Support
- Guidance that is ethical and follows the rules
Our goal's not just to do your taxes but to help you build a stronger financial foundation through planning.
Take control of your tax strategy. If you are ready to stop reacting to your tax bill and start planning ahead we invite you to schedule a consultation. We can review your situation and give you a clear plan for the year ahead.
Schedule a consultation, with Edith Alvarado CPA to start your tax planning review today.