Differences Between Tax Planning and Tax Preparation Services
Differences Between Tax Planning and Tax Preparation Services For the longest time, I thought tax planning and tax preparation were basically the same thing. I mean… they both have the word “tax” in them. They both involve accountants. They both happen around tax season, right? That’s what I assumed. And honestly, that assumption cost me money for years. It wasn’t until my business started growing that I realized something important — and a little uncomfortable. I wasn’t planning my taxes at all. I was just filing them. There’s a huge difference between those two things. And once you understand it, you can’t unsee it. So let me explain this the way I wish someone had explained it to me years ago — in simple terms, with real-life perspective, not technical jargon. The Simple Way to Understand It Here’s the easiest way to think about it: That’s it. That’s the core difference. But the impact of that difference? Huge. Tax preparation deals with what already happened. Tax planning shapes wh...