Tax-Based Bookkeeping? - Tax Strategy For Private Practice Owners

Tax-based bookkeeping is probably one of the most neglected tax strategies, in my opinion.

What is tax-based bookkeeping? At my firm we setup our clients with industry specific (private practice) and tax-specific accounting processes and tracking systems. We do this because we want the bookkeeper to tell the tax preparer a concise tax story. Setting up the books so that the bookkeeping is tax centric makes it more likely for tax preparers to determine the most accurate write off amounts, tax forms to use, and the best way to legally write off the expenses. Tax-based bookkeeping is a must for S-Corporations as the reporting requirements are more complex.

Here’s how tax-based bookkeeping works in your favor:

• Lowers your taxes by taking all eligible tax write offs

• Gives a better idea what to pay in quarterly estimates, eliminating underpayment penalties

• Eliminates chasing information during tax season, and you'll be organized in case of an audit

• Confidence that tax returns are compliant with tax laws

Are you using bookkeeping as a tax strategy to save on taxes?

Schedule a free 15-minute strategy session to learn how I can help make bookkeeping seamless for your private practice.

I'm accepting new clients through 08/31/25 and hope to hear from you before the cutoff.

Jeanette Andrada, MBA, EA

Private Practice Tax Strategist

IRS Enrolled Agent