For anyone who is new to the complexities of Tax, Tax Consulting and Tax Preparation might seem like the same thing. But there is so much more than it meets the eye. Today we are going to debunk this common misconception and talk about the key difference between tax consulting and tax preparation.

Tax Consulting

Tax consulting or tax advising is a comprehensive service that provides you the opportunity to optimize all of your tax complexities before the actual filing. Tax consulting from a tax advisor will help you work on your long-term tax goals.

A tax consultant will assist you to minimize all forms of tax liability so you can manage your tax situation even more effectively. They are experts in Tax law and other forms of financial counseling. The goal of tax consulting is to get the best possible outcome on your tax return.

They are also aware of all the recent tax law changes. So, you can be well informed about all the tax requirements on both state-level and federal taxes.

The range of service you can expect from tax consulting is:

  • Strategy to low your tax.
  • Minimize the tax liability in the case of retirement.
  • Get financial advice to reduce taxes.
  • Help you comply with all the tax rules and regulations.
  • Help to understand the tax model for their process for better tax results
  • Advice on taxation legislation.

Tax Preparation

Tax preparation on the other hand is the process of preparing all the calculations and filing for your tax return. The tax preparers go through your accounts and incomes and figure out the amount of money you or your business has to pay to the government.

There are many tax preparation software on the internet that helps you compute and get your tax filings ready. Some people also choose to do the tax preparation on their own.

What you can expect from a tax preparer?

The preparers will prepare tax returns for both small enterprises and also individuals. He or she will calculate and file an income tax return on behalf of you. They have a good understanding of tax law and reviews all your income statements, business expenses, and much more. This way they can determine which expenses may result in a significant tax deduction.

They also apply necessary deductions and adjustments so that you do not have to pay anything more than needed at the end of the tax year. Tax preparer utilizes their skillset on, financial analysis, accounting, spreadsheet creation and tax prep software to make sure you do not have to face the hassle of tax filing.

Whether you need tax strategies, preparation, or consulting, ProVision can help. Give us a call today! 

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