Tax Consulting & Planning Services in Pleasanton, CA
Tax questions can arise at any time of the year. A change in income, a new business, a major purchase, an ownership change or another financial decision may have tax implications that are worth considering before you take action.
Sharma Davis Madan & Co. (SDM CPAs) provides tax consulting and planning services for individuals and business owners in Pleasanton, California. Our team helps clients consider tax-related issues as part of their broader financial and business planning.
Established in 2002, SDM CPAs is based in Pleasanton and serves clients throughout the surrounding Tri-Valley area.
Tax planning is not a one-size-fits-all process. The appropriate approach depends on the client's circumstances, financial information and applicable tax rules.
What Is Tax Consulting?
Tax consulting involves discussing a specific tax question, financial circumstance or planned transaction with a qualified tax professional.
Tax preparation generally focuses on preparing a return after the tax year has ended. Tax consulting can take place before a decision is made or when a client needs help understanding a particular tax issue.
Depending on the situation, tax consulting may involve questions about:
- Individual income
- Business income
- Self-employment
- Business ownership
- Financial transactions
- Changes in income
- Business structure
- Year-end tax considerations
- Accounting information
- Other tax-related matters
The scope of consulting depends on the client's needs and the professional engagement.
What Is Tax Planning?
Tax planning involves considering potential tax consequences before financial decisions are made and throughout the year.
For a business owner, tax planning may be part of a broader process that includes accounting, cash flow and business planning.
For an individual, tax planning may become relevant when income, investments, property ownership or other financial circumstances change.
Tax planning does not mean that every taxpayer will have the same options. Recommendations depend on the specific facts and applicable tax law.
Tax Consulting for Pleasanton Individuals
Individuals may have tax questions when their personal or financial circumstances change.
Situations that may warrant a conversation with a tax professional include:
- Starting self-employment
- Changes in employment or income
- Significant investment activity
- Purchasing or selling property
- Retirement-related changes
- Changes in family circumstances
- Major financial transactions
- Significant changes in assets or income
Discussing a potential transaction or financial change before it occurs can give a taxpayer more time to understand the relevant tax considerations.
Tax Planning for Pleasanton Business Owners
Business owners often face tax decisions throughout the year, not just when preparing an annual return.
Tax planning may become relevant when a business:
- Starts operations
- Experiences significant growth
- Changes its business structure
- Adds employees
- Purchases significant assets
- Changes ownership
- Expands into new activities
- Experiences a major change in income
- Approaches year-end
A business decision can have accounting, cash-flow and tax consequences at the same time. Considering these factors together can provide a more complete view of the decision.
The appropriate tax treatment depends on the specific facts and circumstances.
Year-Round Tax Planning
Tax planning is often more useful when considered before the tax year ends rather than after all financial decisions have already been made.
Throughout the year, individuals and businesses may experience changes such as:
- Increased or decreased income
- Business growth
- New business activity
- Changes in expenses
- New investments
- Changes in ownership
- Major purchases
- Significant financial transactions
Keeping financial records current can make it easier to evaluate these changes when tax questions arise.
Tax Planning and Accounting
Accounting information provides an important foundation for many business tax-planning discussions.
A business owner may need current information about:
- Revenue
- Expenses
- Profitability
- Payroll
- Cash flow
- Assets
- Liabilities
- Other financial activity
If financial records are incomplete or outdated, it can be more difficult to evaluate the financial situation accurately.
This is why tax planning and accounting often work together.
SDM CPAs provides tax, accounting and bookkeeping services, allowing related financial needs to be coordinated when appropriate.
Tax Planning Before Year-End
Year-end can be a useful time to review the company's or individual's financial position before the tax year closes.
Depending on the circumstances, a client may want to review:
- Current income
- Business performance
- Estimated tax obligations
- Financial records
- Significant transactions
- Business expenses
- Payroll information
- Other relevant financial activity
The appropriate planning steps depend on the taxpayer's situation and the rules applicable to that situation.
Tax planning should be based on actual financial information rather than generic strategies applied to every taxpayer.
Tax Consulting Before a Major Financial Decision
Some financial decisions can create tax consequences.
For that reason, a client may want to discuss potential tax considerations before completing a significant transaction.
Examples may include:
- Starting a business
- Buying or selling a business
- Changing business ownership
- Acquiring significant business assets
- Restructuring a business
- Making a major investment
- Experiencing a substantial change in income
- Completing another significant financial transaction
The tax treatment of a transaction depends on its specific facts. Professional advice should therefore be based on the details of the situation rather than assumptions.
Tax Planning for Small Businesses
Small business owners often manage operations, employees, accounting and tax responsibilities at the same time.
As a business changes, tax planning can become more important.
For example, a change in revenue may affect estimated taxes. Hiring employees can affect payroll and business expenses. A change in business structure may create different tax considerations.
Accounting and bookkeeping records can provide information needed to evaluate these questions.
SDM CPAs provides accounting, bookkeeping, payroll and tax services for business clients, allowing related financial needs to be coordinated when appropriate.
Tax Consulting and Business Accounting
Tax consulting does not happen separately from the rest of a business's financial information.
A business owner may need to consider tax questions alongside:
- Accounting records
- Cash flow
- Financial reporting
- Payroll
- Business expenses
- Revenue
- Business structure
- Long-term financial plans
Having accounting and tax services available through one CPA firm can make it easier to discuss related financial questions within the same professional relationship.
Tax Planning vs. Tax Preparation
Although these services are related, they have different purposes.
Tax Preparation
Tax preparation focuses on gathering financial information and preparing the applicable tax return.
Tax Filing
Tax filing involves submitting the completed return through the appropriate filing process.
Tax Planning
Tax planning focuses on considering potential tax consequences throughout the year and before certain financial decisions are made.
Tax Consulting
Tax consulting involves discussing specific tax questions, circumstances or transactions with a qualified tax professional.
A client may need one service or a combination of them depending on the situation.
Why Consider Year-Round Tax Support?
Waiting until tax season to address every tax question may leave less time to consider decisions that could have tax consequences.
Year-round tax support may be useful when:
- Income changes significantly
- A business is growing
- A major transaction is being considered
- Business ownership changes
- Accounting records need attention
- A new business activity begins
- A client has questions about an upcoming financial decision
The need for ongoing support depends on the individual's or business's circumstances.
Why Choose SDM CPAs for Tax Consulting?
Sharma Davis Madan & Co. was established in 2002 and maintains its practice in Pleasanton.
The firm's services include:
- Tax preparation
- Tax planning
- Tax consulting
- Accounting
- Bookkeeping
- Payroll
- Business advisory services
For clients who need both tax and accounting support, these related services can be coordinated through one established CPA practice when appropriate.
SDM CPAs works with individuals and businesses based on their financial circumstances and the services included in the professional engagement.
Serving Pleasanton and the Tri-Valley
SDM CPAs is based in Pleasanton and serves clients throughout the surrounding Tri-Valley area.
The firm works with clients in Pleasanton as well as nearby communities such as Dublin and San Ramon, where appropriate.
A local CPA practice gives individuals and business owners a nearby resource for tax consulting, tax planning and related accounting services.
Our Pleasanton CPA Office
SDM CPAs maintains a local Pleasanton office for clients seeking tax, accounting and related professional support.
If you are unsure whether tax consulting or planning is appropriate for your situation, you can discuss the circumstances with SDM CPAs and determine what type of professional assistance may be appropriate.
How Tax Consulting and Planning Works
1. Discuss the Situation
The process begins by understanding the tax question, financial change or business decision that needs to be considered.
2. Review Relevant Information
Financial, accounting and tax information relevant to the question is reviewed based on the professional engagement.
3. Identify Tax Considerations
Applicable tax considerations are evaluated based on the client's circumstances and current tax rules.
4. Discuss the Options
The CPA and client can discuss relevant considerations and potential approaches.
5. Make an Informed Decision
The client can use the professional guidance and available information when deciding how to proceed.
6. Revisit as Circumstances Change
Tax planning may need to be revisited when income, business activity, ownership or other financial circumstances change.
Tax Consulting vs. Tax Preparation
Tax preparation generally looks backward at financial activity that has already occurred and uses that information to prepare a tax return.
Tax consulting can address questions before or during a financial event.
Tax planning looks ahead by considering potential tax implications before certain decisions are made.
A client may use all three services at different points depending on their circumstances.
Related Pleasanton Services
Explore related SDM CPAs services and resources:
Tax Consulting FAQs
What is tax consulting?
Tax consulting involves discussing tax-related questions, financial circumstances or potential transactions with a qualified tax professional.
What is the difference between tax consulting and tax preparation?
Tax preparation focuses on preparing a tax return. Tax consulting focuses on specific tax questions or circumstances and can take place before or outside the normal tax preparation process.
What is tax planning?
Tax planning involves considering potential tax implications of financial decisions and circumstances throughout the year.
Does SDM CPAs provide tax consulting in Pleasanton?
Yes. SDM CPAs provides tax-related services, including tax planning and consulting, for clients in Pleasanton, depending on their needs and the professional engagement.
When should I talk to a tax professional?
You may want to speak with a tax professional when your income, business, ownership, investments or other financial circumstances change significantly, or when you are considering an important financial decision.
Should business owners plan for taxes before year-end?
Business owners may benefit from reviewing their tax situation before the end of the tax year. The appropriate planning depends on the business's specific circumstances and applicable tax rules.
Can tax planning and accounting work together?
Yes. Accounting records provide financial information that can be relevant to tax planning and other business decisions.
Can a CPA help with business tax planning?
A CPA may provide business tax planning services depending on their expertise and the scope of the professional engagement.
Does tax planning guarantee lower taxes?
No. Tax planning does not guarantee a particular tax result. Tax outcomes depend on the taxpayer's circumstances and applicable tax law.
Should I wait until tax season to contact a CPA?
Not necessarily. Tax questions and financial decisions can arise throughout the year, and addressing them earlier may provide more time to evaluate the relevant considerations.
What should I bring to a tax consultation?
The appropriate information depends on the question being discussed. Relevant income records, financial statements, prior tax returns and information about the transaction or financial decision may be useful.
Can SDM CPAs help with both tax planning and accounting?
SDM CPAs provides tax and accounting services. The services that can be combined depend on the client's needs and professional engagement.
Does SDM CPAs serve clients in Dublin and San Ramon?
SDM CPAs is based in Pleasanton and serves clients in surrounding Tri-Valley communities, including Dublin and San Ramon, where appropriate.
Need Tax Planning or Consulting in Pleasanton?
Tax questions do not have to wait until tax season.
If you are considering a major financial decision, dealing with a change in income or business activity, or simply want to better understand your tax situation, SDM CPAs can discuss your circumstances and determine which professional services may be appropriate.
Schedule a Consultation With SDM CPAs
5700 Stoneridge Mall Rd, Ste 360 Pleasanton, CA 94588
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