Tax Preparation is the detailed process of obtaining financial data, filling out required tax forms, and submitting it on time to the appropriate tax authorities. This is a detailed process that requires a clear knowledge of prevailing tax laws and regulations to comply and be accurate.

Tax Planning, however, is a forward-looking strategy that entails examining your financial condition to create strategies that will help reduce tax burdens. This involves determining available deductions, credits, and incentives, and making smart investment and spending decisions to maximize tax efficiency.