Planning Ahead: The Undeniable Importance of Tax Planning Over Preparation for Business Owners

Have you ever wondered how tax planning can significantly reduce your business's tax liability compared to just tax preparation? In this episode, Mike discusses the difference between tax planning and tax preparation. Tax preparation is important and required by law. It only involves reporting your business' previous year's activity to the IRS or your state agency. Tax planning, on the other hand, is a strategic activity done throughout the year that can help reduce the amount of tax a business pays. Mike emphasizes that, while tax preparation is mandated by the law, tax planning is crucial for reducing tax liability and increasing business owners' cash flow. He also provides practical approaches on how to implement tax planning, including the importance of continuous learning and strategy implementation throughout the year.[00:00 - 05:04] Tax Planning vs Tax PreparationMike focuses on the differences between tax planning and tax preparation, especially relevant at the beginning of the year.Tax planning is an ongoing process throughout the year, from January to December.Mike addresses common concerns and misconceptions about tax planning, emphasizing that it's about legally saving on taxes.[05:04 - 12:15] The Significance of Tax PlanningMike highlights how the government incentivizes business owners through tax strategies and the positive impact of businesses on the economy.Saving taxes through planning is not cheating the government; it's making use of legal incentives.Not engaging in tax planning is like refusing government-offered benefits.Understanding the law and correctly implementing tax strategies ensures legality.Mike shares how to start with tax planning, including learning about tax strategies through various resources like podcasts, blogs, and YouTube channels.[12:15 - 17:58] Resources for Tax PlanningSee the links below!Quotes:"Our mission is to help small business owners understand the strategies that are available to them, that they can implement in their business, regardless of your business size." - Mike Jesowshek, CPA"Tax planning is not just something that we do once in June and then we're done. No, tax planning is something that's going to be constantly evolving." - Mike Jesowshek, CPA"Learning doesn't save us on taxes. Taking what we've learned and implementing it is what provides us with those tax savings." - Mike Jesowshek, CPA______Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin TaxElm: https://taxelm.com/IncSight Packages (Full-Service): https://incsight.net/pricing/Book an Initial Consultation (IncSight): https://app.simplymeet.me/o/incsight/sale-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/YouTube: https://www.youtube.com/@TaxSavings