Why tax season shouldn’t be the only time you think about taxes
Most business owners assume that because they have an accountant, they have a tax strategy. They don’t.
Accountants are great at what they do: making sure your tax return gets filed on time and accurately. But that’s just compliance. It’s checking a box. A real tax strategy goes beyond that. It’s about proactively finding ways to reduce your tax bill before it’s due. And that’s where most accountants stop short.
The difference between tax filing and tax strategy
Filing taxes is reactive. The year is over, the numbers are what they are, and your accountant plugs them into the right forms. A tax strategy is proactive. It means looking ahead, making decisions throughout the year, and structuring your finances in a way that legally minimizes your tax liability.
Ask yourself:
- When was the last time your accountant suggested a tax-saving strategy instead of just processing your return?
- Have they ever helped you plan your expenses to take advantage of deductions before the year ends?
- Do they review your business structure regularly to make sure it’s still the most tax-efficient?
If not, you don’t have a tax strategist—you have a tax preparer. And that’s a costly distinction.
What a real tax strategy looks like
A true tax strategy isn’t just about the April deadline. It’s a year-round approach that includes:
- Business structure optimization – Making sure you’re set up as the right entity (LLC, S-Corp, C-Corp) to legally minimize taxes.
- Expense timing – Strategically managing when to spend money to maximize deductions.
- Tax credits – Identifying and claiming incentives like the Work Opportunity Tax Credit (WOTC) or R&D credits.
- Retirement planning – Using retirement contributions to lower taxable income.
- Income distribution – Structuring owner compensation in a way that reduces overall tax liability.
What you can do right now
If your accountant isn’t bringing tax-saving strategies to the table, it’s time to start asking the right questions. Or better yet—work with someone who treats tax planning as an active, ongoing process, not just a once-a-year chore.
Taxes are one of your biggest expenses. If your accountant isn’t helping you lower them, you’re leaving money on the table. And you don’t have to.