It’s rarely about income. Most of the difference comes down to decisions made before filing season: How the business is structured How expenses are tracked and categorized When income and expenses are recognized How owners compensate themselves Where state tax exposure is triggered I see businesses with identical revenue end the year with very different tax outcomes simply because one planned throughout the year and the other didn’t. Question for the room: Which of these do you think impacts taxes the most in your business right now? No right or wrong answers, curious to hear different perspectives.

Most businesses don’t overpay taxes because of income, they overpay because of timing and structure. Strategic tax planning focuses on: When income is recognized How expenses are categorized Which entity structure fits the business stage Where deductions and credits are legally optimized Done correctly, tax planning is proactive, not something addressed only at filing season. Two businesses with the same revenue can end the year with very different tax outcomes based purely on planning decisions made earlier in the year.