Why tax planning is essential for business owners & how to get it right

Tax compliance is a legal necessity, but tax planning? That’s where real financial impact happens. Yet, many businesses overlook this powerful tool—leaving thousands of dollars in tax savings on the table. A structured tax planning process helps reduce tax, increase cash flow, and protect assets.

Here’s how it works:

The 10-step tax planning process

1. Understand client goals – use an interview checklist to gather financial details and future objectives.
2. Review financials – pull data from accounting software for a clear picture of income, expenses, and liabilities.
3. Determine business profitability – establish year-to-date profit and project financial year outcomes.
4. Estimate total income – include business owners, spouses, trusts, and SMSFs to plan holistically.
5. Select tax strategies – apply AI-powered tax software to identify legal tax-saving opportunities.
6. Optimize salary & super – find the right mix for maximizing deductions and minimizing tax.
7. Ensure ATO compliance – conduct a compliance check to avoid penalties and fines.
8. Audit business structures – assess if companies, trusts, or partnerships are set up for tax efficiency.
9. Create a tax planning report – quantify potential tax savings and outline actionable steps.
10. Client meeting & implementation – present strategies, implement changes, and provide ongoing support.

Why every accountant should offer tax planning

• It’s a high-value service – clients are willing to pay for advice that saves them money.
• It strengthens client relationships – businesses want a proactive accountant, not just a tax preparer.
• It increases revenue – firms using structured tax planning see higher client fees & retention rates.
• It sets you apart – only 20% of accountants offer real tax planning, giving you a competitive edge.

Don’t let your clients miss out on legal tax savings. A structured tax planning process ensures they keep more of their hard-earned money—while your firm boosts profitability.

Want to make tax planning a core service in your practice? Start implementing a structured approach today.