--- title: What Services Are You Receiving? Tax Planning v Tax Preparation description: Learn what is the difference between tax planning and tax preparation and how do they work together in your financial plan. image: https://www.jec-llc.com/hubfs/Cunningham_2023/Migration/team-of-business-people-working-together-in-the-office-1080x479.jpg --- [Skip to content](https://www.jec-llc.com/blog/what-services-are-you-receiving-tax-planning-v-tax-preparation#main-content) [![cunningham-logo](https://www.jec-llc.com/hs-fs/hubfs/Logos/cunningham-logo.png?width=667&height=196&name=cunningham-logo.png) ![www.jec-llc.comhs-fshubfslogo (2)](https://www.jec-llc.com/hs-fs/hubfs/social-suggested-images/www.jec-llc.comhs-fshubfslogo%20(2).png?width=341&height=100&name=www.jec-llc.comhs-fshubfslogo%20(2).png) ](https://www.jec-llc.com) - Private Tax Advisory Show submenu for Private Tax Advisory - [ Private Tax Advisory ](https://www.jec-llc.com/private-tax-advisory) - [ The Private Tax Plan ](https://www.jec-llc.com/private-tax-plan) - [ Strategic Tax Projects ](https://www.jec-llc.com/strategic-tax-projects) - M&A Advisory Show submenu for M&A Advisory - [ C&A DealMakers ](https://www.jec-llc.com/sell-side-ma-advisory-for-business-owners-ca) - [ Are You Ready To Exit? ](https://www.jec-llc.com/business-exit-readiness) - [ Sell-Side Advisory ](https://www.jec-llc.com/what-is-sell-side-advisory) - [ Family Business Strategy ](https://www.jec-llc.com/family-business-strategy) - [ Big Beautiful Bill ](https://www.jec-llc.com/one-big-beautiful-bill-act) - About Us Show submenu for About Us - Our Approach Show submenu for Our Approach - [ Our Approach ](https://www.jec-llc.com/our-approach-eliminate-fragmentation-build-wealth-cunningham-associates) - [ Our Process ](https://www.jec-llc.com/our-process-tax-reduction) - [ Tax & Financial Analysis ](https://www.jec-llc.com/integrated-tax-and-financial-analysis) - [ About Us ](https://www.jec-llc.com/about-us) - [ Leadership ](https://www.jec-llc.com/about-us#Our-Leadership-Team) - [ Testimonials ](https://www.jec-llc.com/client-testimonials) - [ Careers ](https://www.jec-llc.com/careers) - [ Contact Us ](https://www.jec-llc.com/contact-us) - [ (508) 797-5003 ](tel:+15087975003) - Resources Show submenu for Resources - [ Tax Guides & Resources ](https://www.jec-llc.com/cunningham-associates-tax-guides-and-resources) - [ Success Stories ](https://www.jec-llc.com/success-stories) - [ Blog ](https://www.jec-llc.com/blog) - [ Video ](https://www.jec-llc.com/tax-advisory-video-gallery) - [ FAQs ](https://www.jec-llc.com/faqs) - Private Tax Advisory Show submenu for Private Tax Advisory - [ Private Tax Advisory ](https://www.jec-llc.com/private-tax-advisory) - [ The Private Tax Plan ](https://www.jec-llc.com/private-tax-plan) - [ Strategic Tax Projects ](https://www.jec-llc.com/strategic-tax-projects) - M&A Advisory Show submenu for M&A Advisory - [ C&A DealMakers ](https://www.jec-llc.com/sell-side-ma-advisory-for-business-owners-ca) - [ Are You Ready To Exit? ](https://www.jec-llc.com/business-exit-readiness) - [ Sell-Side Advisory ](https://www.jec-llc.com/what-is-sell-side-advisory) - [ Family Business Strategy ](https://www.jec-llc.com/family-business-strategy) - [ Big Beautiful Bill ](https://www.jec-llc.com/one-big-beautiful-bill-act) - About Us Show submenu for About Us - Our Approach Show submenu for Our Approach - [ Our Approach ](https://www.jec-llc.com/our-approach-eliminate-fragmentation-build-wealth-cunningham-associates) - [ Our Process ](https://www.jec-llc.com/our-process-tax-reduction) - [ Tax & Financial Analysis ](https://www.jec-llc.com/integrated-tax-and-financial-analysis) - [ About Us ](https://www.jec-llc.com/about-us) - [ Leadership ](https://www.jec-llc.com/about-us#Our-Leadership-Team) - [ Testimonials ](https://www.jec-llc.com/client-testimonials) - [ Careers ](https://www.jec-llc.com/careers) - [ Contact Us ](https://www.jec-llc.com/contact-us) - [ (508) 797-5003 ](tel:+15087975003) - Resources Show submenu for Resources - [ Tax Guides & Resources ](https://www.jec-llc.com/cunningham-associates-tax-guides-and-resources) - [ Success Stories ](https://www.jec-llc.com/success-stories) - [ Blog ](https://www.jec-llc.com/blog) - [ Video ](https://www.jec-llc.com/tax-advisory-video-gallery) - [ FAQs ](https://www.jec-llc.com/faqs) - [ Contact us ](https://www.jec-llc.com/contact-us) Open main navigation Close main navigation [ Contact us ](https://www.jec-llc.com/contact-us) [Tax Strategies](https://www.jec-llc.com/blog/topic/tax-strategies) # What Services Are You Receiving? Tax Planning v Tax Preparation [mailto:?body=https://www.jec-llc.com/blog/what-services-are-you-receiving-tax-planning-v-tax-preparation](mailto:?body=https://www.jec-llc.com/blog/what-services-are-you-receiving-tax-planning-v-tax-preparation) ![What Services Are You Receiving? Tax Planning v Tax Preparation](https://www.jec-llc.com/hs-fs/hubfs/Cunningham_2023/Migration/team-of-business-people-working-together-in-the-office-1080x479.jpg?width=950&name=team-of-business-people-working-together-in-the-office-1080x479.jpg) ![Picture of Ryan Foley](https://www.jec-llc.com/hs-fs/hubfs/Untitled%20design%20(50).png?width=50&name=Untitled%20design%20(50).png) [ Ryan Foley ](https://www.jec-llc.com/blog/author/ryan-foley) Apr 22, 2021 7:01:00 PM 2 min. read There is a big difference between tax planning and tax preparation. Many business taxpayers do not understand the engagement they have with their tax advisors. As a result, they end up missing out on major tax savings and opportunities. Here’s what you need to know about the differences between tax planning and tax preparation. ## What is Tax Preparation? Tax preparation is an exercise in compliance and reporting. Generally, you have [revenue and expenses](https://www.jec-llc.com/how-to-create-predictable-profits-and-cash-flows/) to report and you place those items in certain buckets to report on a tax return. While there are options for reporting, elections you can make, and opportunities you can utilize, you are generally limited to working with the information you have. ## Tax Planning vs. Tax Preparation While tax preparation focuses on compliance and reporting, tax planning allows you to make tax-centric business decisions throughout the year, which can substantially change the information you have to report.  Those decisions are often influenced by real-money tax savings. For example, many companies do profit projections at the end of every year and make decisions about equipment purchases or employee bonuses based on those profit numbers. This is a simple exercise in tax planning – the business aims to reduce its profit at the end of the year by increasing certain expenses. ## The Importance of Planning If you wait until the close of the year to figure out your tax situation, it is too late! Here’s why: Tax planning requires forethought and specialized expertise. Great advisors work with their clients as a team and lean on specialized d tax experts to ensure their clients take advantage of the opportunities available to them.  Due to the constantly changing and complex tax code, third parties often are necessary to execute tax planning opportunities like industry-focused business credits, or [strategies](https://www.jec-llc.com/top-tax-strategies-in-the-golden-age-of-taxation/) that require a full analysis or study. Many great accounting firms lean on experts in these fields to help their clients implement the best tax strategies. Read More: *[Tax tips for small business owners](https://www.jec-llc.com/small-business-tax-tips/)* One reason many business taxpayers are *not* actually getting tax planning services is simply that they do not want to pay for it. Tax planning is a more comprehensive service that typically costs more money. However, those additional fees are frequently recouped through tax savings. Here’s the bottom line: we understand what tax services you are receiving from your advisors, and we can fill in the necessary gaps. Our firm does most of our upfront work at no cost to ensure there is a real-money benefit to a strategy before we execute it for you. *Ready to learn more? *[*Contact Cunningham and Associates today*](https://www.jec-llc.com/contact-us/)* at (508) 687-6329 and get a head start on this year’s tax strategy.* ## Blog comments ## Related posts [![It's A (Tax) Drag: Combating Tax Drag Through Tax Reduction And Tax Efficient Investing](https://www.jec-llc.com/hs-fs/hubfs/Canva%20images/Canva%20Design%20DAGCCnRsY-0.png?height=500&name=Canva%20Design%20DAGCCnRsY-0.png) ](https://www.jec-llc.com/blog/its-a-tax-drag-man-combating-tax-drag-with-tax-reduction-and-tax-efficient-investing) [Tax Savings](https://www.jec-llc.com/blog/topic/tax-savings), [Tax Strategies](https://www.jec-llc.com/blog/topic/tax-strategies), [Investing](https://www.jec-llc.com/blog/topic/investing), [Tax Efficient Investing](https://www.jec-llc.com/blog/topic/tax-efficient-investing) 7 min read. ## [It's A (Tax) Drag: Combating Tax Drag Through Tax Reduction And Tax Efficient Investing](https://www.jec-llc.com/blog/its-a-tax-drag-man-combating-tax-drag-with-tax-reduction-and-tax-efficient-investing) ![Picture of Bryan Acuto](https://www.jec-llc.com/hs-fs/hubfs/Ryan%20Foley%2c%20Partner%20(5).png?width=50&name=Ryan%20Foley%2c%20Partner%20(5).png) [Bryan Acuto](https://www.jec-llc.com/blog/author/bryan-acuto) Apr 25, 2024 1:23:34 PM [Read more](https://www.jec-llc.com/blog/its-a-tax-drag-man-combating-tax-drag-with-tax-reduction-and-tax-efficient-investing) [![The Role of Tax Advisory in Multigenerational Planning](https://www.jec-llc.com/hs-fs/hubfs/Canva%20images/Canva%20Design%20DAGV7Nmx9L0.png?height=500&name=Canva%20Design%20DAGV7Nmx9L0.png) ](https://www.jec-llc.com/blog/the-role-of-tax-advisory-in-multigenerational-planning) [Tax Strategies](https://www.jec-llc.com/blog/topic/tax-strategies), [Business exit](https://www.jec-llc.com/blog/topic/business-exit), [Estate Tax](https://www.jec-llc.com/blog/topic/estate-tax), [Advanced Estate Planning](https://www.jec-llc.com/blog/topic/advanced-estate-planning) 2 min read. ## [The Role of Tax Advisory in Multigenerational Planning](https://www.jec-llc.com/blog/the-role-of-tax-advisory-in-multigenerational-planning) ![Picture of Ryan Foley](https://www.jec-llc.com/hs-fs/hubfs/Untitled%20design%20(50).png?width=50&name=Untitled%20design%20(50).png) [Ryan Foley](https://www.jec-llc.com/blog/author/ryan-foley) Nov 11, 2024 2:07:35 PM When it comes to preserving and growing wealth across generations, tax advisory plays a crucial... [Read more](https://www.jec-llc.com/blog/the-role-of-tax-advisory-in-multigenerational-planning) [![10 Common Estate Planning Tax Mistakes To Avoid](https://www.jec-llc.com/hs-fs/hubfs/happy%20young%20family%20have%20fun%20on%20beachand%20showing%20home%20sign%20with%20conncected%20hands%20while%20protecting%20childrens.jpeg?height=500&name=happy%20young%20family%20have%20fun%20on%20beachand%20showing%20home%20sign%20with%20conncected%20hands%20while%20protecting%20childrens.jpeg) ](https://www.jec-llc.com/blog/10-common-estate-planning-tax-mistakes-to-avoid) [Tax Strategies](https://www.jec-llc.com/blog/topic/tax-strategies), [Small Business](https://www.jec-llc.com/blog/topic/small-business), [Exit strategy](https://www.jec-llc.com/blog/topic/exit-strategy) 8 min read. ## [10 Common Estate Planning Tax Mistakes To Avoid](https://www.jec-llc.com/blog/10-common-estate-planning-tax-mistakes-to-avoid) [Morgan Macchiarulo](https://www.jec-llc.com/blog/author/morgan) Oct 16, 2023 7:38:57 AM [Read more](https://www.jec-llc.com/blog/10-common-estate-planning-tax-mistakes-to-avoid) [![Cunningham and Associates C&A](https://www.jec-llc.com/hs-fs/hubfs/Logos/cunningham-logo.png?width=667&height=196&name=cunningham-logo.png "Cunningham and Associates C&A")](https://jec-llc.com) linkedin-in icon - Private Tax Advisory - [Private Tax Advisory](https://www.jec-llc.com/private-tax-advisory) - [The Private Tax Plan](https://www.jec-llc.com/private-tax-plan) - [Strategic Tax Projects](https://www.jec-llc.com/strategic-tax-projects) - M&A Advisory - [C&A DealMakers](https://www.jec-llc.com/sell-side-ma-advisory-for-business-owners-ca) - [Are You Ready To Exit?](https://www.jec-llc.com/business-exit-readiness) - [Sell-Side Advisory](https://www.jec-llc.com/what-is-sell-side-advisory) - [Family Business Strategy](https://www.jec-llc.com/family-business-strategy) - [Big Beautiful Bill](https://www.jec-llc.com/one-big-beautiful-bill-act) - About Us - Our Approach - [Our Approach](https://www.jec-llc.com/our-approach-eliminate-fragmentation-build-wealth-cunningham-associates) - [Our Process](https://www.jec-llc.com/our-process-tax-reduction) - [Tax & Financial Analysis](https://www.jec-llc.com/integrated-tax-and-financial-analysis) - [About Us](https://www.jec-llc.com/about-us) - [Leadership](https://www.jec-llc.com/about-us#Our-Leadership-Team) - [Testimonials](https://www.jec-llc.com/client-testimonials) - [Careers](https://www.jec-llc.com/careers) - [Contact Us](https://www.jec-llc.com/contact-us) - [(508) 797-5003](tel:+15087975003) - Resources - [Tax Guides & Resources](https://www.jec-llc.com/cunningham-associates-tax-guides-and-resources) - [Success Stories](https://www.jec-llc.com/success-stories) - [Blog](https://www.jec-llc.com/blog) - [Video](https://www.jec-llc.com/tax-advisory-video-gallery) - [FAQs](https://www.jec-llc.com/faqs) ## Get the latest from C&A We care about the protection of your data. 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