Tax season may have just passed, but it is never too early to get a head start on your tax strategy. Taxes do not always have to be an extremely stressful time, and we can help you alleviate a lot of your tax-related stress simply by planning ahead. Want to learn more about tax strategies, what the steps are, and how they can benefit you? Keep reading!
What is a Tax Strategy?
A tax strategy is a systematic plan of action to permanently reduce your taxes, customized to your specific situation. Tax strategies are often the fastest way to put and keep, money in your pocket. This approach seeks to reduce your taxes, and in turn, increase your wealth. As an individual, taxes can be frustrating to deal with, and it can be tricky to determine how much you owe, if you should be paying throughout the year, what you should be claiming, and more. As a business owner, it can be even more overwhelming.
What are the Steps of a Tax Strategy?
As with any good strategy, there are always steps to take! These have been outlined in a previous blog, which you can read here, but we have included them here for convenience as well. Here is how we typically approach the tax strategy process.
1. Find an Advisor
Evaluation of your current wealth situation and a new understanding of how to find the right advisor for you, even if it’s not us.
2. Design
Creation of a custom strategy and action plan to accelerate your path to financial freedom.
3. Implement
Coordination between your team of advisors to execute your strategy and achieve your vision.
4. Report
Maintaining corporate formalities, developing reports to show the progress of your strategy and identifying any needed changes.
5. Protect
Confidence that your assets are protected and your team is prepared to defend your strategy in a legal situation.
How You Can Prepare to Talk Tax Strategy
If you are planning on utilizing ProVision’s tax strategy services, there are a few things that you can do beforehand to get you best prepared to talk tax strategy at your meeting.
Collect Financial Information
Formal records of revenue received, detailed expense reports, and copies of your receipts will be extremely useful if you are audited.
Get Employment Documents
Ensure that you have gathered all of your necessary tax documents such as W2s, 1099s, past years’ tax information, and more. Having everything on hand makes strategizing your taxes a seamless and relatively stress-free experience. If you are a 1099 contractor, verify that you have documents from all of your contracts and jobs throughout the tax year, and be sure to claim all of your income accurately.
Look Into Your Deductions
Depending on your type of employment, there may be a variety of deductions that are available for you to utilize. There are also some tax strategies you can implement that will actually reduce what you owe. Learn all about them in our blog post, and get in touch with one of our tax strategists today!
Getting started with a tax strategy at ProVision is a pretty painless process. If you are ready to see how you can get a head start on your tax strategy, reach out to our experts.