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What’s the difference between tax projections and tax planning?

What’s the difference between tax projections and tax planning?

A tax projection uses current income and expenses to project taxable income for the entire year. This allows an estimate of tax due. 

While this service helps set aside money for future taxes owed, it does nothing to actually help save money on taxes. 

Tax planning, on the other hand, goes further than tax projections by proactively seeking out strategies that can be applied to legally reduce taxes based on a person’s life, business and any applicable regulatory requirements. 

Think about it like this: would your clients rather just know what they’ll owe in taxes…or would they rather know how much you can save them in taxes? 

This is why tax projections and tax plans are actually quite different—and so is tax projection software compared to tax planning software.

Firms that go beyond tax projections and start tax planning are able to provide higher value to their clients. 

Even if you have never done tax planning before, it’s easy to get started with the technology that’s available today. 

That’s where Corvee Tax Planning Software comes in, helping firms streamline the entire tax planning process.

Calculate over 60 tax savings strategies instantly and create multi-entity, multi-year plans in minutes. You can even export proposals and deliverables with the click of a button.

Are you ready to move beyond tax projection software to explore how tax planning software can help you provide more value to your clients by offering tax planning?