If you’re not tax planning, you’re probably leaving money on the table. The three simple actions below will put you in the tax planning game, and then at the end of this post you’ll find a handful of links to short tax planning articles.

1. Just do it! Contact your financial advisor or CPA to get the ball rolling. Even if you don’t have a clue about what to do, a single meeting will quickly orient you, and then each passing year will sharpen your tax planning skills. Remember, tax planning pays for itself, and there are a finite number of strategies. It doesn’t take long to figure out and execute your strategy.
2. Include your business(es) and your entire family situation in the equation. By coordinating the treatment of taxable income and tax deductible expenses from every part of your life you’ll find more opportunities to save money.
3. Take a multi-year approach. In a blind rush to minimize this year’s income tax bill, entrepreneurs often end up paying more tax because they don’t properly balance deductions between this year and next year, when they might be in a higher marginal tax bracket, where deductions are worth more. Taking an even longer perspective, if you see an exit strategy in the near future, reconsider whether a C Corporation or S Corporation makes most sense – it can dramatically affect how much tax you’ll owe when you cash out.

Schadler Business Services in Martinez, California, offers some helpful tax planning ideas for both business and individuals — so of course you’ll read both! For general tax planning strategies from a layperson’s perspective, see Tax Never Sleeps and Tax Time Talk With Your CPA. Regarding the latter, we’ve said it over and over again through the years: entrepreneurs typically underutilize their CPAs. Be assertive and ask your CPA for tax planning help. And finally, for some more detailed tax strategy regarding owner’s compensation, check out Paycheck as a Financial Tool.

What’s different about this year might be the preponderance of retirement plan options for entrepreneurs. So if you haven’t set up a retirement plan, and before you commit to one for next year, it might be worth looking into the different options now available. It’s getting to be something of an alphabet soup out there, but it’s pretty easy to quickly narrow your options.