In this older Financial Clarity conversation with Hannah Smolinski, I explained one of the most important distinctions in proactive tax work.
Tax projection tells you what is likely to happen.
For example:
"You're projected to owe $10,000 next year."
Tax planning starts there and asks a different question:
"What strategies can we implement to potentially reduce that liability?"
That is the difference between simply forecasting the tax bill and proactively working to change the outcome.
I also shared a practical question you can ask when evaluating a tax advisor:
"What are some of your favorite tax strategies?"
The answer can tell you a lot.
Some professionals may focus mostly on more familiar year-end ideas, while others may have deeper experience with more advanced tax planning strategies.
You do not need to become the tax expert yourself.
But you should understand what the advisor is talking about, feel comfortable asking questions, and have confidence that they know how to move beyond basic compliance work.
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Jackie Meyer, Dr Jackie Meyer, Financial Clarity podcast, Hannah Smolinski, tax planning, tax projection, tax strategy, tax advisor, tax advisory, proactive tax planning, tax savings, CPA, accounting, accountant, tax professional, financial planning, tax planning strategies, CPA firm, accounting firm, advisory services, financial literacy, tax preparation, business owner #short
