Expectations from CPA Financial Advisors and Tax Accountants

Kiss tons of frogs to find your perfect financial planner and tax advisor.

The skill set, educational and professional requirements are different for each. Ask friends, co-workers, etc. who they use or who they recommend. Have a set of questions you want to ask. Ask each of the candidates for your business the same set of questions when you set up a meeting with them. Write down their answers. Many don't charge for first time consultation which gives you tons of help for selecting a planner and tax professional.

Once you have met with all the potential candidates, it is time to compare notes and make a decision on who will be the best for your needs. Also note your needs may change and the expertise of your selected professional may not meet your needs and they may not be flexible enough to take you where you want to go in which case you may need to make a change.

Always remember you are working for the best interest of your Me, Inc. Every professional in your court need to be working in the best interest of your Me, Inc. too. This covers from doctors, to lawyers, to repair persons, to financial advisors to tax consultants, etc. Everyone around you should be working their best in your best interest. It takes a team to maintain the wealth.

We have a financial planner, tax counsel/CPA and legal counsel.

Our financial planner and tax counsel do consult each other but they each have separate jobs as far as our investments, taxes, etc. When it is necessary, all three will consult with each other and us to make sure things are going in the direction we plan.

I do all of the quarterly tax reports, etc for our company and our tax counsel takes care of all other taxes which are to be filed yearly. He reviews my reports in QuickBooks and if there is something I need to adjust he lets me know.

I feel it is important to work WITH your financial counselor so you know and understand everything about your investments. A lot of people just hand over the accounts to "let someone deal with it" and that someone might not be the brightest financial advisor in the box and then you end up losing or not gaining as much as you could have.

Knowledge is power.

I have separate financial planner and tax accountant. That said, my financial planner asks for our AGI (adjusted gross income from the tax return) each year. That way he can say - based on your AGI last year, unless you anticipate a huge income change, you'll be eligible to put money into a Roth IRA this year, so let's do xxx. Or he might say - you have this investment, and if you sell it, in your tax bracket, that is going to cost you around xxx in taxes next year, so be prepared for that.

So, although I don't expect my financial planner to prepare my taxes, I agree with you that your financial planner cannot do his job if he doesn't have a basic understanding of where you stand.

As for how to choose someone, I have always gone with larger companies because I know they are well-insured, so someone can't run off with all my $. Other than that, it's been hit or miss, and just interviewing people until we found someone we are comfortable with.

Look for CFP's (certified Financial Planner) in your area and interview several to see which one you (and your husband) have the best report with. You should be comfortable talking about the details of your life with the as they need to be able to tailor your financial plan your your specific risk tolerance and time line. It's not just about getting to biggest return, it's about a plan that fits your needs and resources. He/She should be a good listener and be available when you need to contact them (not 24/7, but will return calls within a reasonable amount of time).

I would ask the CFP for recommendations for an accountant. Since he/she will already have a workup of you financial needs, they should also know a few accountants that would be a good match.

If you like your accountant, ask for a referral or two. She may work with several financial planners. Interview them all.

I do have to say that a financial planner can't plan a thing without knowing EVERYTHING about your financial status and income. So expect those to be the first questions you answer.

My best friend is the controller for a multi million dollar company.
She's not a tax accountant.
She pays to have her own taxes done.
CPA does not equal tax accountant.

Sounds like you just need a new financial advisor.
Really--our financial planner has no crossover with our taxes.

Yes there are definitely firms that do both! You just need to do your research in your area and pick a good one! I actually work for a CPA who is also a financial advisor. It's a small firm, just him, myself (I am his assistant in the financial services side of the practice), and his tax assistant/secretary. Personally, I wouldn't recommend this particular guy to my worst enemy. He is a flake, he's mean, and I'm at my wits end working here. BUT, that being said, there are plenty of good ones out there. He and I go to monthly meetings with other CPA/financial advisors and I can tell many of them truly care about their clients. There are some benefits to using the same person for both. Think about it, if your CPA is also your financial advisor, he knows your goals, your income and spending habits, he can work with you to really choose good investment options. Also, they may be more apt to give you a discount on a particular service or lower their commission on your investments. It just makes a lot of sense to use someone who does both. Good luck!