Tax Planning vs. Tax Preparation

Tax Planning vs. Tax Preparation. What’s the difference?

Have you ever heard the old saying “It’s better to prepare and prevent than to repair and repent?” It’s one of our favorites! At our firm, we appreciate a proactive approach rather than a reactive one. That’s the difference between Tax Planning and Tax Preparation.

Tax Planning is PROACTIVE and happens throughout the year, typically through semi-annual, quarterly or even monthly “check-ups”. During these check-ups, your financial activities can be measured against your financial goals to be sure that you’re on the right track. Are you doing what you need to do to reach your goal? For example, if your goal is to maximize your tax deductions and minimize your tax liability, we can help you with our Tax Planning Services.

We also offer Tax Preparation services at our firm. Tax Preparation is REACTIVE and happens after the tax year has ended. It involves reporting the financial activities for the previous calendar year. With few exceptions (such as retirement savings deductions), once financial decisions are made, they cannot be modified. When filing tax forms, the preparer can only work with the data that is provided.

Contact our office at to schedule a consultation if you are interested in either of these services.

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