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Tax Planning Vs Tax Reacting: How to Save Money by Taking Action Now

May 11th, 2023 | 5 min. read

By CSI Accounting Staff

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We know nobody really likes tax season. However, the work you do now could be the difference between saving money or spending money in the Spring.

Did you know that an annual tax accountant can only fill out your tax forms according to what's already happened? They can't truly help with tax planning because they don't work with your accounting year-round; their job mostly involves recording history.

Luckily, there's an option that can actually improve your tax outlook: monthly accounting.

At CSI Accounting & Payroll, monthly accounting has been our specialty for over 50 years. This allows us to use a complete tax strategy - tax planning, tax projections, and tax preparation - to not only legally minimize what you owe, but also to help you know what your tax return is going to look like many months ahead of time.

Here, we'll discuss:

  • What is tax strategy?
  • How can tax strategy save me money?
  • Why can't an annual accountant help with tax strategy?

What is Tax Strategy?

Proper tax strategy consists of three things: tax planning, tax projections, and tax preparation. All year long, tax planning monitors your tax situation to help reduce the stress of tax season and legally minimize what you owe. That's why only monthly accountants can do this.

For example, when you work with CSI Accounting & Payroll, your information is up-to-date and ready for tax season. We have periodic meetings to make sure we're on the same page. At the end of each tax planning meeting, you should have a tax projection so you know what your taxes will look like months ahead of time. This will give you plenty of time to prepare for a tax bill that may be larger than you originally expected.

How Tax Strategy Saves You Money

Tax strategy is the best way to legally minimize your taxes, and a monthly accountant can help you stay on track for that each month. Throughout the year, they can guide you in business decisions to help with tax season, and your dedicated accountant will know your business so well that they may even be able to recommend certain tax credits.

Tax strategy is also most beneficial long-term with a professional. Did you know that even if an accountant saves you money on your taxes one year, that can be detrimental to you the following year? Here is an example of how paying more in taxes now might actually help you save even more in taxes later.

Read the complete guide to Small Business Taxes For Beginners

Why Annual Accountants Can't Offer Real Tax Strategy

So wait - why can't an annual tax accountant help with tax strategy? To put it as simply as possible, they only meet with you once a year, and a lot happens in the meantime!

Your annual accountant might even claim that they do offer tax strategy. However, you need to make sure they're talking about the real deal. If they can't professionally guide you year-round, then you're not really using tax strategy.


  • Are they prepared to meet with you regularly to review your books? Do they know what to look for and how to offer relevant advice? 
  • Will they offer you any tax projections based on current data throughout the year instead of just looking at your past tax return?
  • If you call them with a question, will they charge you by the minute for their time? Will they even pick up the phone when you call?

Get Started With Tax Strategy for Next Tax Season

The two ultimate goals of tax strategy are legally minimizing what you owe in taxes and being prepared for a potential tax bill.

If tax strategy is important to your business, don't rely on an annual tax accountant. They lack the ability to offer real tax strategy since they only meet once a year and may not provide ongoing support or advice. They also don't work with current data to offer proper tax projections, and their availability and pricing for assistance may be limited.

Only monthly accounting can provide proper tax strategy: tax planning, tax projections, and tax preparation. By working with a monthly accountant like the ones at CSI Accounting & Payroll, you'll have an up-to-date understanding of your financials, allowing you to prepare for potential tax bills.

If you would like to schedule a free consultation to see if we can be a good fit for your business, click the button below!

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Not ready to talk? That's okay! Learn more about the different types of advice a monthly accountant can provide by clicking the image below:

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CSI Accounting Staff

This article was composed by a member of our staff who interviewed our experts to get the facts straight. Any uncited information found here came straight from a knowledgeable accountant or payroll specialist.