Understanding Tax Planning and Froehling Anderson’s Approach

Tax planning is the process of looking ahead, analyzing your income, transactions, and financial goals, and determining the best strategies to reduce or defer taxes while staying compliant with federal and state tax regulations. Because U.S. federal taxes operate on a pay-as-you-go basis, most taxes must be paid throughout the year as you earn income. Without a plan, you may face unnecessary tax surprises, penalties, or missed opportunities for savings.

Both business owners and individual taxpayers benefit from tax planning by:

• Reducing tax liability to maximize savings
• Improving cash flow management
• Minimizing penalties and interest
• Preparing for major life events such as buying a home, paying for college, or getting married
• Staying ahead of legislative and economic changes

For businesses, tax planning is a strategic tool that provides clarity around future obligations and opportunities. A thoughtful plan allows leadership to:

• Budget for quarterly tax payments
• Analyze business transactions before they happen
• Make informed decisions about entity structure
• Align tax strategy with overall financial goals

Whether you’re evaluating growth opportunities, planning for succession, or managing industry-specific regulations, proactive planning can make the difference between scrambling at year-end and being confidently prepared.

Individuals face many financial decisions with tax implications—whether it’s saving for retirement, planning for education expenses, or navigating major life milestones. Without a plan, these choices can lead to higher tax bills or missed deductions and credits. Tax planning empowers individuals to:

• Take advantage of deductions and credits
• Plan for retirement contributions
• Structure investments tax-efficiently
• React effectively to unexpected events with minimized financial impact

At Froehling Anderson, we believe that tax planning is not a one-time event—it’s an ongoing process. Our Minneapolis and St. Cloud based CPAs work with you throughout the year to evaluate your options, anticipate changes, and provide recommendations tailored to your goals.

Our tax planning services include but are not limited to:

• Quarterly tax payment calculations
• Business transaction analysis
• Year-end planning
• Entity structure decisions
• Retirement and estate planning
• Proactive strategies for life changes

By partnering with our team of experienced accountants, you’ll gain peace of mind knowing you have a proactive plan in place, designed to help you save money, meet compliance requirements, and stay prepared for the future.

Tax planning is not just about reducing your tax bill—it’s about aligning your financial decisions with your broader goals. Our firm’s expertise, industry knowledge, and client-first approach make us a trusted advisor for businesses and individuals.

If you’re ready to take a proactive approach to your taxes, we can help with that! Our professionals will create a strategy that minimizes surprises and maximizes opportunities.