The tax deadline struggle is real. Who hasn’t prepared taxes at the last minute, hitting that submit button or rushing to the post office at the very last second, knowing you didn’t do all you could do to make the most of a potential return? As much as people may dread tax season, it’s a whole lot easier to manage when you don’t wait to crunch the numbers.

UHNW individuals and high-earning professionals in tech, finance, and cross-border considerations have a window in the following months — May through July, to be specific — that can help businesses and individuals save thousands of dollars and reduce the strain of next year’s taxes.

So, why work on tax prep right after tax day? Well, it’s a combination of updated income data and avoiding the end-of-the-year pressures that loom with that dreaded April date. Taking advantage of these opportunities allows you to re-evaluate your finances from top to bottom, whether it’s adjusting withholdings, making the most out of equity compensation, or planning for contributions and entity changes. You can do all of this without the date circled in red pen lurking over your shoulder, resulting in a slew of hasty decisions that aren’t always well thought out.

No One Wants to Miss Opportunities

If you’re someone who waits until the last quarter of the year to start tax planning, you’re not alone. But think about all of the opportunities you’re leaving on the table. Given that experts like financial advisors, accountants, and firms are inundated with a slew of last-minute filings, the process tends to be rushed, and you lose out on a significant number of opportunities.

Options like RSUs or incentive stocks may not be available at the end of the year and could result in tax bills that were otherwise avoidable. Additionally, instances where individuals moved states, made foreign income, or altered business structures in the middle of the year risk hefty payments or even misreporting without taking the time to plan ahead of tax season.

Avoiding Classic Tax Prep Mistakes

So, what are some other mistakes people make when they don’t take advantage of early prep? Not classifying income properly is a big no-no, as is ignoring estimated tax payments and underutilizing retirement vehicles like SEP IRAs or Solo 401(k)s. Sure, these may seem minor, but businesses and individuals in a bracket of $300K-$600K risk five-figure liabilities with these errors. 

It’s All About the Timing

We spoke with expert George Dimov, CPA and founder of Dimov Tax, who encourages filers to “understand the distinction between tax preparation and tax planning. Treat May through July as the true season to optimize taxes.” Between less surprise liabilities and the opportunity to make more deliberate decisions, planning early is a wise option.

Even access increases with early planning. After tax season, advisors have more availability to get down to the nitty-gritty and really “work with you to strategize with regard to specific financial scenarios, primarily when it comes to contending with multi-state income, dual residency, and foreign tax exposure.”

Know When to Consult the Experts

For example, consider the comprehensive capabilities available in the accounting firm that you hire. Dimov’s firm, for example, handles domestic and international complexities and offers rapid response collaboration, detailed document reviews, and dialogue that exists all year long. As he explained, “We have a one-day response-time requirement embedded in our company culture to ensure clients never get ghosted.” Taxes tend to be more complicated than ever, given the significant uptick in freelancing, side gigs, and micro-businesses. The tax lines get blurrier in those instances. Seeking professional advice and getting the ball rolling early can help prevent costly errors.

All in all, early tax prep allows the process to shift from a stressful and frantic time-sensitive plight to a slower, less chaotic ongoing conversation. On top of short-term savings, it can also impact long-term goals like real estate investing and even early retirement. Approach tax prep early, expand the notion of tax season, and take advantage of the benefits that come from seeking advice when tax experts aren’t inundated. This will set you up for a strategic approach to your portfolio and long-term impact as you grow your net worth.