Difference Explained: Tax Planning or Tax Preparation

Have you been wondering what the difference between tax preparation and tax planning is. Have you been thinking that they are both the same thing? Well, where they might sound like same thing, they each provide different services that can help during tax season.

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Tax Planning

Tax Planning is a service that takes place all year long where the accountants get all documentation to be able to file your taxes. Tax planning is also a way to start planning what financial goals you want to reach. By having a goal in mind for your next tax season you and your accountant can develop strategies that can be implemented through the year to gain the best tax result. Tax planning does require some time to be able to see if the strategies that were implemented provided the results you were looking for.

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Tax Preparation

Tax preparation is a onetime yearly event where your accountants help you organize, prepare, and file all the right documentation needed for the tax season to help you comply with the state and federal law. The tax planning is done with the information you provide your accountant of the year you will be filing. Tax preparation is a time when you get to see the result of the strategies that were put into place throughout the year during the tax planning phase.

At NeatBooks we can help you create strategies uniquely centered around you and your business. Our strategies and organization will help you prevent your tax season from becoming a time your dread. If you want to get started on implementing the strategies that are right for you contact us.


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