Running an agency means wearing every hat. You’re the rainmaker, the team leader, the client whisperer, and often the financial decision-maker. But one role that gets overlooked too often? Tax strategist.

If you’re only thinking about taxes during Q1, you are likely overpaying. A lot.

In a recent episode of The Practical Wealth Show, CPA and tax strategist Catrina Craft shared how agency owners can stop handing extra cash to the IRS and start making the tax code work in their favor. After building her own financial comeback from six figures of debt, Catrina developed a strategy-first approach that now helps business owners cut their taxes by 25 percent or more and boost profits by at least 20 percent.

Here is how she breaks it down.

Most Agencies Play Defense with Taxes. The Wealthy Play Offense.

Agency owners are often focused on top-line growth. More retainer clients. Bigger projects. High-ticket packages. But without a tax strategy, much of that hard-earned revenue disappears.

Most tax professionals are trained to file, not forecast. They help you stay compliant, but they rarely help you play offense. That is where the real savings live.

According to Catrina, the biggest difference between overpaying and optimizing comes down to timing. Planning in April is too late. Tax strategy should happen before the decisions are made, not after the year is closed.

Watch the video Stop Overpaying the IRS Proactive Tax Strategies for Entrepreneurs with Catrina Craft

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That LLC You Formed? It Is Not a Strategy.

Catrina sees this mistake all the time. An agency owner files an LLC and thinks they are covered. But when asked how their LLC is taxed, most say they are not sure.

This is a big deal.

LLCs are not taxed by default. You must elect how you want your business treated. If you are still being taxed as a sole proprietor or partnership, you could be paying unnecessary self-employment taxes.

The solution is not one-size-fits-all. Your tax strategy should align with your agency model, team structure, revenue mix, and growth plan. That is why Catrina emphasizes working with someone who understands both tax law and the business of service-based companies.

The CRAFT Money Map: A Framework Built for Profit-Driven Business Owners

Catrina created the CRAFT Money Map to guide clients through financial decisions with clarity and control. Here is how it works:

C – Cash Management

Look at your books. Are you paying for unused tools, platforms, or subscriptions? Are there expenses that bring zero ROI? Step one is identifying the leaks.

R – Retirement Planning

As an agency owner, you can deduct certain retirement contributions and use them to reduce taxable income. Catrina partners with financial advisors to help clients make smart moves that support both savings and tax planning.

A – Asset Protection

Your agency is an asset. So are your client contracts, intellectual property, and personal investments. This step ensures that your success is protected as you scale.

F – Financial Freedom

What is the goal behind your revenue goals? Whether it is buying back your time, investing in a creative team, or building generational wealth, your numbers should support a vision, not just a number.

T – Tax Strategy

This is where it all connects. With proactive planning, you can turn everyday business expenses into legal deductions, restructure your entity for better savings, and reduce what you owe while still growing your business.

Your Annual Offsite Could Be Deductible

Catrina shared a great example. A client hosted a board meeting at a luxury resort. Their adult children were board members. The hotel, travel, and even meals were deducted because they followed IRS guidelines.

The key is understanding what is “ordinary and necessary” based on your business model. The tax code allows for creativity, but it requires documentation and alignment with your industry.

Refunds Are Not Strategy. They Are Warnings.

A big tax refund might feel like a win, but it usually means you overpaid.

As Catrina explains, you are giving the IRS an interest-free loan. That money could have been used to hire a strategist, launch a new campaign, or increase your owner’s draw. Holding onto your cash throughout the year is part of financial leadership.

What the Ultra-Wealthy Get Right About Taxes

Many of Catrina’s clients are high earners, celebrity entrepreneurs, agency owners, and digital creators. What separates those who thrive from those who stall is not just revenue. It is planned.

They treat their income like it is temporary. They build reserves, invest intentionally, and surround themselves with advisors who keep them ahead of the curve. You can do the same.

Real Moves You Can Make Right Now

Here are a few agency-ready strategies Catrina shared:

• Buy needed equipment or a company vehicle before year-end if it qualifies under Section 179

• Review the last three years of tax returns for missed deductions

• Hire your children to help with content creation, admin, or social media in the business

• Turn your team retreat or annual planning weekend into a deductible board meeting

These moves can create instant cash flow and long-term savings when used correctly.

Not All Tax Pros Are Strategists

Filing is not the same as planning. Many agency owners assume their CPA is taking care of their strategy. The reality? Most CPAs are preparing returns, not building plans.

Catrina’s clients receive a full written strategy with code references, estimated savings, and guidance for implementation. If the strategy does not save more than her fee, she lets the client know upfront.

Final Word: Agency Owners, Stop Tipping the IRS

You are working too hard to give the IRS a bonus.

Whether you are scaling your team, optimizing profit margins, or preparing for an acquisition, you need a financial strategy that supports the next level of your business.

Book a consultation with Catrina Craft today

She will help you review the last three years, uncover missed opportunities, and create a custom plan to save more, invest smarter, and grow with clarity

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