What is Tax Planning? See How to do it and Check the Step by Step Here

Tax Planning

How to do tax planning? The best solution is to have a qualified accounting service specialized in serving Taxes for small business. Thus, it is possible to ensure that the reduction of the tax burden is done within the law and without presenting risks to your business. Meeting the tax and tax obligations of your business can be simpler than you think. To achieve this goal, you must have the support of accountants who know how to do good tax planning. After all, this tool makes it possible to save on the tax burden and maintain the company’s growth, always within the law.

Do you want to go deeper into the subject and understand exactly how to do tax planning, its importance, and the steps to structure it and how to put it into practice?

Avoiding the levy of a tax

The tax system is quite complex. Therefore, the main way to save money is by planning so that an unexpected tax does not fall on your services or products. An example of how to apply this strategy is to try to discover the municipal tax exemption rules. Ignoring tax management is not a good idea for the entrepreneurs.

Reducing collection values

When the payment of a certain tax is inevitable, in some cases it is possible to decrease the percentage to be collected. One way to do this is by adhering to tax incentives that reduce tax rates. Tax incentives can be at the federal, state, regional and municipal levels.

Delaying obligation payment

In some cases, it is possible to delay the payment of a tax without suffering fines or being forced to assume installments. So, if after a wide evaluation your accounting service finds that this is the best strategy, you can count on more cash on hand, whether to move the business or invest in an item with a high potential for return.

Why do you need to know how to do tax planning?

Contrary to what many people imagine, learning how to do tax planning is not only useful for big businesses. See below what are the main advantages of having a tax planning.


The clearest benefit for sure is the decrease in tax expenses. After all, taxes generally represent 30% – 45% of all business revenues. Therefore, any savings are welcome.


Tax planning works preventively, as it helps to eliminate accounting errors. Thus, it is also easier to avoid assessments and the imposition of fines by the tax authorities for failing to pay any mandatory tax.


Thanks to the previous benefits, the company has more resources at its disposal to reinvest in its main activity, boosting business growth and getting ahead of the competition.