When it comes to reaching your financial goals, the easiest way to get there is by working with the right team of professionals and advisors. But when building their teams, many people make the mistake of keeping their support systems siloed. More specifically, they act as a middleman between financial advisors and accountants, sometimes leading to confusion and missed opportunities.
To reach your financial goals as quickly and efficiently as possible, your advisors and accountants should have a relationship of their own. If they’re able to work together directly, they can help you make smarter decisions and achieve better financial outcomes.
But what exactly should your advisor-accountant relationship look like? Here’s what we recommend.
Understand the unique role each team member plays
Before we dive into how a financial advisor and certified public accountant (CPA) can work together, it’s important to understand the unique qualifications and responsibilities of each role.
Financial advisors help you create a financial plan to put you on the right path to reaching your short and long term goals. This includes everything from saving for retirement and your kids’ education to estate planning and even philanthropy strategies. They also provide direction on when and where to invest, helping to build a financial portfolio that brings you closer to achieving your financial goals.
CPAs also provide support in achieving your financial goals, primarily through offering tax advice, completing audits, and creating financial reports. They can help you prepare your tax return and suggest strategies to help lower your tax burden and protect your assets. An accountant can also help you keep track of your income and expenses and manage your books.
When should a financial advisor and accountant work together?
Your financial advisor and accountant both have unique insight, qualifications, and experience that when paired together provide each party with a more holistic view of your financial standing and goals. This is particularly important when making major decisions or undergoing big life changes.
For example, if you’re planning for retirement, a financial advisor can help you set a goal and design an investment strategy to achieve it. But while financial advisors have a basic understanding of tax law, bringing a CPA into the conversation can help you identify new opportunities that you hadn’t considered. Your financial advisor and accountant can collaborate to find the best path forward for your particular situation.
When CPAs and financial advisors work together, it relieves pressure from the client and reduces the need to act as a middleman in conversations. Your CPA and financial advisor can connect directly, making the financial planning process easier and faster.
How to develop a strong advisor-accountant relationship
The most important part of building a strong advisor-accountant relationship is working with a team that you can trust. When both parties are in your corner and want the best outcomes possible for you, you can have confidence that you’re on your way to achieving your financial goals.
At Odyssey Group, we can provide both financial planning services and tax planning, either working with your already trusted accountant or by providing a referral to one of our trusted partners. If you’re ready to build a financial team, get in touch with us today.
