Let’s get straight to the point: taxes can be a headache, especially if you’re running a small business. But what if your CPA could turn that headache into a win for you? That’s exactly what we did for one of our newest clients—a small business owner who switched over to us from another CPA firm. The result?

We helped them keep an extra $16,000 in their pocket, without any financial hocus-pocus or needless spending. We simply applied smart tax strategies that the other guys had overlooked. If you’re curious about how we made it happen—and how we could do the same for you—read on.

Tax planning isn’t a luxury reserved for the super-rich or sprawling corporations. Our client, a solo attorney pulling in a respectable $200,000 a year, is living proof. They’re not a millionaire, and they don’t have a complicated web of offshore accounts—just a straightforward, hard working business owner looking to make the most of what they earn. And that’s exactly where we come in. With the right strategies, even ‘everyday’ entrepreneurs can see extraordinary benefits.


Client Background

Meet our client, a solo attorney and single mom juggling her practice and raising two teenagers. Despite earning around $200,000 annually, she felt like her previous CPA was leaving her in the dark—no proactive planning, no attention to her questions. After a colleague’s recommendation, she reached out to us, and that’s when the transformation began.


The Tax Strategy Blueprint

Understanding both short-term and long-term goals is crucial in tax planning. During our discovery consultation, we dug into her business objectives and financial vision. This information paved the way for a tailored, dynamic tax plan that not only saved her money but also kept her cash flows intact. Here’s how:

Entity Reformation: Switching her from a sole proprietor to an S Corporation slashed her tax bill by $5,900—every year moving forward.

Health Insurance Deduction: Proper documentation enabled a $1,680 savings, simply by making her existing health insurance payments deductible.

Health Savings Account (HSA): Contributing $7,300 to an HSA gave her a tax break of $1,752. It’s like a future-proof medical piggy bank that can morph into a retirement fund.

Accountable Plan: $1,488 in additional tax savings came from turning her regular expenses—like cell phone use and auto mileage—into business deductions.

Retirement Contributions: We steered $15,000 into a SEP plan, carving out another $3,600 in tax savings, and added $6,000 to a traditional IRA, shaving off an extra $1,440.

Family Payroll: Putting her daughter on the payroll transformed cash gifts into legitimate business deductions, netting $870 in tax savings.


The Result of Implementing a Tax Plan

In total, we unearthed $16,730 in savings. But numbers only tell part of the story. Our client now enjoys peace of mind, knowing that she’s not only saving money but also partnering with a CPA firm that genuinely has her back. For us, it’s not just about the bottom line; it’s about building lifelong relationships with our clients.  Read more about how a modern CPA firm can help your business.


Ready for Your Own Success Story?

We’ve just shown you how we turned a frustrated small business owner into a satisfied client, saving her thousands while still keeping her cash flow humming. Imagine what we could do for you. Isn’t it time you stopped settling for reactive accounting and started enjoying proactive, customized tax strategies that really make a difference?

Don’t leave your financial future to chance. Book a discovery consultation with us today, and let’s explore how we can make your hard-earned money work smarter, not harder.

Joy Lutz, CPA, CTP

As the founder of Aligned CPA, Joy has built a firm that is your strategic financial partner.  With a growth centric approach, we build meaningful relationships with our clients because we value their success as much as our own.

Positioning ourselves as the tax and financial strategists for your business, we help you make empowered, financial-based business decisions that lead to long term success.