strategic entrepreneurs recognize that the new year is prime time to gain a competitive edge. One of the best ways to do this is to have a new approach to yourself tax planning.

Instead of just closing your books, make time for high-value strategic work. You will emerge with a clear vision for yourself financial futureless stress and, most likely, more money in your pocket.

Here are four steps to guide the process.

1. Understand where you stand

First things first: If you haven't already met yours tax advisor to estimate your taxable income and tax liability for this year and next year, schedule that appointment as soon as possible. Knowing these numbers gives you a starting point to plan your next moves.

An April tax bill should never come as a surprise. If you've experienced this, it's a sign that you're taking a reactive approach to taxes. As an entrepreneur, you need to be as proactive as possible. Taking control of your financial destiny starts with knowing your numbers.

2. Identify the right quick wins

Once you know your estimated tax liability, ask yourself: What can I do now to reduce the taxes due next April? One of the first options people jump to is deferring income to the next year. This should NO be your first move. Instead, make sure you and your tax advisor are looking at the whole picture.

Look for things you can do now that will give you a permanent—instead of a procrastination— tax reduction. Here are some moves to consider.

• Maximize deductions. Very entrepreneurial don't get all the discounts which they qualify for, essentially by donating money to the government. Review all your expenses, both personal and business, and see if you're leaving money on the table. The two deductions I often see from entrepreneurs are the home office deduction and business expenses paid from a personal account.
• Give to charity. While it doesn't make sense to donate to the government by skipping the deductions, there are many nonprofits that will do great work with your gifts. The government encourages this type of giving by allowing taxpayers to itemize their own deductions deduct donations to qualified charities up to a certain percentage of their adjusted gross income. Plus, donations don't have to be in cash. You can donate stocks, property and even digital currency. When you donate appreciated assets, such as Bitcoin, you may receive a charitable deduction for the fair market value of the asset, AND you do not need to recognize the capital gain.
• Use tax credits. In many ways, tax credits are even better than tax credits because they reduce the taxes you owe dollar for dollar. Many tax credits will require some planning, so you may find more opportunities to lower your taxes in future years. However, it's still worth exploring as a potential quick win.

3. Get a jump start on 2025 and beyond

With those quick wins secured, it's time to think ahead. What can you put in motion now to accelerate your business growth while also permanently lowering your tax burden?

Look for actions that will create lasting benefits and organize them into a roadmap to guide you through the next three to five years. Here are some actions to consider.

• Setting up entities strategically. Entrepreneurs unlock significant tax benefits and profit potential compared to employees when they create business entities – especially if they choose the right tax structure. If you move quickly, you may be able to form a new LLC, corporation, or partnership before the end of the year. If not, start the process now and have beneficial results for you as soon as possible. For best results, coordinate with your attorney, CPA, and other advisors.
• Make new investments. The government pays entrepreneurs to make certain types of investments by offering tax incentives, often in the form of tax credits or deductions. As you think about your next business moves, consider where you can invest your money to get a big profit and a big tax benefit.
• Look for lower tax brackets. If you are an entrepreneur with children, they can provide valuable support to your business and give you access to their lower tax bracket. For example, if your child works in your business, they can earn up to the standard deduction amount and not have to file a tax return. Child wages are a deductible business expense and are taxed at $0. Sit down with your tax advisor and see what your children can do within your business and how you can use that money for certain expenses.

4. Prepare for change

With many elements of the Tax Cuts and Jobs Act of 2017 set to expire at the end of 2025 and a new administration ready for actionwe are likely to see some significant changes in tax law. But remember: No matter who's in the White House or Congress, the tax bill is a series of incentives available to anyone who chooses to use them. As you create your tax strategy, look for ways to stay agile. That way, you can adapt as new tax policies come into play.

There are things you need to look at now, especially around estate planning. Unless there is a change in tax law, exemption from property taxes will fall back in late 2025 to the 2017 baseline. Review your will, trusts, insurances, beneficiary designations and powers of attorney, and consider whether you want to exercise the gift tax exemption this year. For 2024, you can give away up to $18,000 per individual (or $36,000 per married couple) without filing a gift tax return.

Use this time at the beginning of the new year wisely. By taking these simple steps now, you'll start 2025 ahead of the pack.