What Is a Tax Strategist and Why Your Business Needs One

Alleson Tate
Woman sitting at desk looking over financial documents.

A tax strategist specializes in helping your business pay less taxes. I know what you’re thinking. “I already have a CPA.” Here are four reasons a tax strategist is different from your CPA.

1. Tax Planning: They review your profit and loss statement every quarter to identify how much money you will owe in taxes. That’s right, you can know (in advance) what you will pay in taxes before you even file a return. Having this information is powerful as it helps you plan your cash flow. Imagine if you knew how much you needed to put aside every month for taxes. You would no longer be stressed out from receiving an unexpected tax bill that takes all of your cash or forces you into an installment agreement.

This is different from your tax preparer who provides quarterly estimated tax payments.  They are simply solving for the amount of tax you have to pay in each quarter to avoid an underpayment penalty. They aren’t doing any strategic planning. Your business revenue and profitability fluctuates each month. It’s important to have someone analyzing your tax position in real time and strategically planning how to help you pay less money.

2. Entity Selection: Have you wondered if it’s time to upgrade your LLC to a S-Corp or C-Corp?

A tax strategist can tell you exactly how much money you will save by changing entities. They will also help you prepare the paperwork, file the new entity tax return, and keep you compliant.

3. Deductions and Credits: They identify eligible deductions and tax credits, which can result in significant tax savings. This includes deductions for business expenses, employee benefits, and research and development credits, among others. We’ve all seen the stories on social media about how to write-off your vacations, birthdays, and hire your kids. These are good strategies, but must be implemented correctly and documented to make them audit-proof.

4. Financial Planning: Tax strategists often work closely with financial advisors to integrate tax planning with overall financial planning, ensuring that tax implications are considered in investment decisions and financial goals.

Every successful business owner needs a team of advisors. That team should include a bookkeeper, tax preparer, tax strategist, financial advisor, estate planning attorney, business attorney, and a mentor/coach. With this “Dream Team” you can conquer anything. They all work in your best interest to help you scale your business, grow and protect your wealth, while helping you pay less taxes.

I am a tax strategist and Certified Financial Planner. In 2023, I saved my clients over $800,000 in taxes. If you would like to learn how I can help you save at least $30,000 in taxes this year, schedule a call using the link below.




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