Working With a Tax Preparer vs. Tax Strategist | What's the Difference?

there's a misconception out there that i don't want you to fall victim to and that is when is it do you save money in taxes what i mean by that is there are people who think that you save money in taxes by hiring an accountant to prepare your tax return and there's others that know not just think but they know that you save taxes or the most amount of taxes when you actually implement strategies throughout the year and those strategies are built into your numbers and so that when your accountant actually prepares your tax return at the end of the year all the tax savings have been baked in to your financial statement so let me kind of just break this down on what do i mean by this so there's a lot of business owners especially i shouldn't even say new business owners i was gonna say there's a lot of new business owners that think this but even tenured business owners who think to themselves their accountant or tax preparer is going to save them thousands of dollars in taxes simply by preparing their return well that's not actually how it works if you're working with a tax preparer and i use that term specifically typically what they're going to do is they're going to take the numbers that you give them right they're going to say hey give me your 1099 your w2 and all these different forms they're going to plug it into their tax prep software and they're going to kick out your return and say hey pay my invoice this is how much i'm charging for preparing your return and also uncle sam you owe him about 12 000 okay that's when you work with a tax preparer when you work with a tax strategist right what they're gonna do is they're going to work with you throughout the year and say hey why aren't you implementing this strategy how come you're not hiring your minor children why are you taxed as a sole proprietor you should have formed an llc and should be taxed as an s corporation why are you paying so much why are you paying so much in the form of reasonable compensation when you could be paying yourself much less and taking that tax savings and investing into your retirement account why are you investing in an ira your your business is so profitable why are you just limiting yourself by putting six thousand dollars in ira you can put 58 000 into a solo 401k for yourself and you can do that for your spouse so these are examples of what i'm talking about but you can't implement these strategies when you're preparing your tax return right right now it's the end of 2021 so you're going to prepare your tax return in let's say q1 or q2 of 2022 well by then it's too late right you can't go back in time into the prior year 2021 in this example and implement those strategies right you got to set up your solo 401k plan now and you got to have your salary deferred into that plan you got to have you know given your child your minor child some tasks and paid them monthly and did so in the proper manner that's not gonna raise you know eyebrows of the irs and say hey you know how is this all working so the point of this quick video was to just let you know you don't save money in taxes by simply working with someone who prepares tax returns you save money in taxes by working someone who will help you implement strategies educate you along the process bake these strategies into your quickbooks or your bookkeeping software so that when it's time to prepare your tax return there's no tax savings or no aha moment or large tax bill the person that's been helping you throughout the year has been telling you hey by implementing these strategies you're saving 11 000 in taxes we've done all the strategies that we can you're still going to owe the irs about this amount of money right so the purpose of this video was just to kind of educate you on the difference between working with a tax preparer and someone who's more of a tax strategist that's helping you implement strategies in your business if you want to learn more about this or perhaps you know you want to learn more you want to work with a professional but you can't afford to pay a professional thousands of dollars well what you could do you can visit my website if you if you'd like it's navimiragcpa.com when you go there there's a ton of things you can do you can watch videos for free where i teach you about tax savings you can form an llc here for free or an s corporation for free you can get a free expense tracker i'll teach you the basics here in this expense tracker such as you know auto deduction cell phone internet but if you really want to maximize your tax savings you'll enroll in this course i created i basically was able to successfully clone myself and i've got over 11 hours of content that will teach you about effective tax rates marginal tax rates how the tax system works uh bookkeeping quickbooks implementing all these strategies right we talked about some of them already home office auto cell phone internet travel meals hiring your minor children the s corporation implementing the 401 k the solo 401 k and putting in 58 grand in there if you want okay so go here you can enroll in the course if you want currently it's on sale for a massive discount i've really never offered it at this price before except for one other time here's a little bit more what you will see on my website if you go there and you click on the course you'll see the details of what you'll learn some frequently asked questions more about myself and you can preview the course content right here uh you can click on some of the videos and watch them so you know what you're getting this is not it if you click here you're gonna see even more lessons that i put in here so there's nothing that i'm holding back on everything that i implement with my very own clients is here in this course so again just wanted to show you um you know the difference between you know saving money and taxes or the way you think you're saving money in taxes by working with a tax preparer versus someone who's going to actually teach you and help you implement strategies throughout the year so that you could save thousands of dollars in taxes all right with that said i'll see you in the next video

Channel: Navi Maraj, CPA

Views: 4,760

Keywords: tax strategy, tax preparer, tax strategist, taxes, business taxes

Id: FnnUeUe7-x0

Length: 6min 2sec (362 seconds)

Published: Tue Nov 23 2021