Tax planning is analyzing your business's financial plan from a tax perspective. Tax planning helps you understand how specific taxable items in your business affect your profitability and business functionality. The process allows you to know how to use the taxable items to benefit your business before the end of a financial year.
While tax planning is crucial to running your business, a lot of people don't understand its benefits. For instance, many Americans don't think it's necessary for their businesses and don't pay much attention to it.