How deep should I cut?

Hello, I am about 6'5, 178, so I am fairly lean, but I can move some weight for sure. The issue is where my fat happens to be stored which is just basically the side of my stomach, making my shirts fit very poorly, giving me a square look with very small arms. My arms arent necessarily small by any means, but they arent big either. I just do not know whether I should try and put more muscles on my back/shoulders to try and balance it out, while risking gaining more fat, or just try and lose the fat, then lean bulk. If anyone is or was in a similar spot Id love some help.