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What Is Tax Planning?

Tax reduction planning entails analyzing an individual's financial situation and employing strategies to minimize tax payments based on their unique facts and circumstances. This comprehensive approach considers numerous factors such as tax credits, deductions, investments, and expenditures. Ultimately, tax planning revolves around comprehending the impact of business and personal choices on taxes, which often represent the most substantial expense for individuals.

The Truth Is

Most of your clients believe you are already tax planning for them throughout the year. But for the most part, tax professionals are focused on compliance and are not proactively working to save clients money on taxes. That all changes with.

How CBA Can Help Solve These Challenges & Lower Taxes for Your Clients

Calculate Taxes Owed

RTS estimates how much tax will be owed for individuals and businesses. 

Personalized Strategies

Based on the specific tax scenario, RTS recommends strategies to lower taxes.

Help Clients Realize Savings Fast

Most clients can easily input information and realize tax savings in minutes. 

Tax Planning Is Proactive, Not Reactive

For decades, tax professionals have scrambled at the end of the year to file tax returns based on events that have already happened. The relationship is typically an annual check-in with no ongoing consultation. Because of this, fees are low. 

By contrast, tax planning is a year-round service. Tax planning professionals help clients make the smartest tax decisions when they need it most — before the decisions are made, and long before the year is over.

See how much tax they’ve paid, how much they are projected to owe and proactive strategies you can present to lower taxes. This ongoing relationship is advisory and adds value, so the fees you can charge for tax planning are much higher. 

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Tax Planning Is About More Than Just Tax Preparation

Filing accurate forms for tax compliance is essential. While you may know a few strategies, running thousands of strategies across multiple entities and years has never been possible until now.

Planning allows you to be a valuable partner. You’re not just preparing tax returns at the end of the year — you’re strategizing with your clients on the tax implications of their business decisions before they make them.

Strategies Alongside Forms

Typically, tax professionals have focused on tax forms when helping clients manage and pay income tax. But with tax planning, we can use strategies across the following categories to help clients make smarter tax decisions before filing forms for compliance.

  • Maximize deductions 

  • Legal entity structures 

  • Retirement planning 

  • Insurance and asset protection

  • Tax Cuts and Jobs Act (TCJA) 

  • Families First Coronavirus Response Act (FFCRA)

  • Coronavirus Aid, Relief, and Economic Security Act (CARES) 

Multi-Entity Matters

Unlike most tax professionals who focus on individual entity filings, we recognize that every business decision impacts the overall tax situation. The choices made on the individual tax return (1040) can affect the business due to flow-through and dividend tax rates.

 

Our approach includes comprehensive testing for multi-entity planning, allowing us to assess the impact of various options across all entities and multiple years. With our consolidated, multi-entity tax calculation, we can provide a holistic view of the tax implications and help optimize your tax strategy.

Clients Deserve It & Will Pay More

Whether your client is brand new or has been with you for 10 years, they deserve one thing: smarter tax decisions.

They may choose to do something that results in paying higher taxes, but with tax planning, you’ll be able to present them with options before they take action.

It's Who You Are

You’ve dedicated your career to being a tax advisor. Before now, understanding how tens of thousands of tax forms, strategies and industries work hasn’t been possible.

By offering tax planning, you can turn tax into a year-round business by helping clients save money with RTS.

Ready to Offer Tax Planning?

We'll show you how easy it can be with CBA

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© 2023 Cash Balance Advisors | Disclosures

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