Proactive Tax Strategy vs Tax Preparation: What’s the Difference?

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If you are an entrepreneur or small business owner, having a good accountant is essential for the function and success of your business. You need someone to make sure your books are in order, and you have properly paid your taxes–in other words, good tax preparation. However, if you want help lowering your taxes, increasing your profits, and attaining greater wealth, you’ll need the help of a proactive tax strategy.

Typical Tax Preparation

Your CPA is likely a well-educated professional. At some point, they passed a rigorous CPA exam that is focused on Generally Accepted Accounting Principles, which has almost nothing to do with the tax code. Any CPA worth his or her salt will know how to audit a business, function in a normal business environment doing reconciliations and general ledger account, and adhere to regulations.

The general extent of tax work for a CPA focuses on recording data and then transfers this data to a tax return on your behalf. Basically, this means following the instructions and putting the right information into the right boxes. They may also offer reactive, or after the fact, tax planning advice after filing your previous year’s taxes. While this last may be helpful, it’s a little like closing the barn after the horses have escaped. That’s why you need a proactive tax strategy rather than a reactive one.

The Advantages of a Proactive tax strategy

So what is proactive tax planning? It’s a pretty basic concept: it means that you’re creating a plan using the tax code itself to lower taxes. Imagine that the tax code is a highway with traffic lights on it. Red lights are the warning signs in the tax code that tell you when you need to stop–the parts that your CPA will rightly focus on to keep you from breaking the law. However, using principles found in the Internal Revenue Service Tax code–all 70,000 pages of it–, a proactive tax strategy also finds the “green lights” that allow you to lower your tax liability. There are a lot of those that your CPA doesn’t focus on. You need a proactive tax strategy team to work with you to find those “green lights!”

The “green lights” of the IRS tax code will increase your business profitability and grow wealth. Financial Gravity provides these strategic tax planning services that help entrepreneurs and small business owners increase their profit and attain greater wealth.

So, how do you create this proactive tax strategy? First, you need to request a talk with one of our Financial Gravity team members and make an appointment for a Strategic Assessment Meeting.

What is the Strategic Assessment Meeting?

The Strategic Assessment Meeting starts with Financial Gravity’s team members sitting down with you for a free tax analysis. They review your returns and other financial information and look for missed opportunities that may be costing you thousands in taxes that you don’t have to pay. They’ll take time to learn about your business, your entrepreneurial desires for the future, and will also review Financial Gravity’s process and programs and explain the Tax Blueprint program.

The Tax Blueprint in a Nutshell

The Tax Blueprint provides a clear, proactive, strategic tax reduction plan that is customized specifically to you and your business. There’s a reason that we call it a “blueprint.” Just like how a blueprint functions as the plan for building a house, the Tax Blueprint serves as the plan for building a comprehensive tax plan which in turn forms a long-term proactive strategy for your business.

The basic business fundamental epitomized here is maximizing money coming in, and minimizing money going out. That’s what the Tax Blueprint does: increase profit by giving you a plan to not spend it unnecessarily.

Schedule a Free Assessment Talk

Although Financial Gravity’s team members can’t tell you right away how much you can save until they sit down with you for an analysis, you need to know that most business owners are wasting thousands of dollars a year in taxes they simply don’t have to pay. Bottom line: you owe it to yourself to make sure you’re making the most of every business opportunity to save money that you can use for reinvestment.

 

Requesting a free assessment talk will help you determine if Financial Gravity’s proactive tax planning program can save you money. Find out more about how you can bring on a financial planner who will truly assist you in employing the best investment strategies for your small business. Speak with a Financial Gravity team member: Let’s Talk!

Let's Talk - Proactive Tax Strategy vs Tax Preparation: What's the Difference?

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