What is a Tax Planner?

A tax planner is a person who helps someone prepare for tax season by establishing a financial plan which reduces the total amount of taxes paid, while making it easier to organize materials for tax season. Many tax planners are accountants who also offer tax preparation services as part of a bundled package for their clients.

You may also hear the term “tax planner” used to refer to organizing software which is intended to serve the same function as a human tax planner. Tax planning software helps people organize their finances in a way which makes sense to them, while offering advice which is designed to reduce the tax burden and to assist with the organization of materials like receipts for expenses. There are a number of tax planning software suites on the market, many of which are integrated with software which helps with personal budget planning and savings plans.

The goal of a tax planner is to help the client organize his or her financial matters in a way which is clear and easy to understand. By organizing things like expenses and revenue, a tax planner can help someone get a better picture of his or her finances, and this information can be used to prepare tax materials, and to identify areas in which work may be needed. For example, organized accounting may reveal that a great deal of money is being spent on office supplies, suggesting that a cheaper supplier might be required.

Tax planners work with their clients to find ways to reduce the overall tax burden by identifying potential write offs, which can range from purchases of new equipment to investments. They also help people prepare for tax season by helping them organize their quarterly tax payments, if they pay taxes quarterly, and they typically encourage their clients to consider putting money in savings or investments so that they have more financial security. By organizing financial materials with a tax planner, people also save on tax preparation, since little work is required on the part of the tax preparer beyond plugging in numbers.

Tax planners are especially useful for people who are just starting out as small business owners or independent contractors. Owning your business requires a lot of work, and new business owners are often unfamiliar with the ins and outs of the tax code. Using a tax planner from the start can help someone stay organized, and it can also ensure that he or she is able to focus on running the business by showing the business owner how to manage his or her finances responsibly.


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