Is Your Financial Planner Also Your Accountant

Financial Planner

Hiring a sound financial planner is essential for proper financial planning. A mistake on this front can prove to be very costly to your financial goals. Unlike financial planning which is an ongoing process, accountants or CPA’s are needed during tax season. But these days, many people are favoring a single person handling both accounts as well as financial planning. There are companies like who offer to take care of financial planning as well as taking care of the taxes.
As per a leading website on investment planning, the consumers are also warming up to the idea of hiring an accountant who can double up as a financial planner as they can help with not only investments but investments which can save them from being heavily taxed.

Here are some of the grounds to have your financial advisor as your accountant or vice-versa

Experience as an accountant: Accountants with expertise not only prepare and file taxes; they are quite adept at creating long term financial plans for savings for future needs like retirement, illness, kid’s education, etc. Many financial planners are taking up the dual role of not only investments but also investments that help save taxes.

Taxes: Financial planning is not just about investments, it is also about creating the right strategy for your client. No two clients need the same, so the strategy for each of them should be different depending on their financial goals. The investment strategy and the investments made should be keeping in mind the tax efficiency too. Hence working with a financial planner who has expertise in accountancy is beneficial for the clients as that person knows in and out about taxes as well helps you plan finances. An integrated approach works well for both parties.

Remuneration: If you have hired a separate account and a financial advisor, then there are chances that you are incurring a loss. That is because both might have knowledge and expertise of both financial planning and taxes. Why pay double, when you can hire a single person for handling both. You not only save cash and time, but you are also reducing the amount of confusion each will have on the other aspect. Also, you will have the added advantage of having a single person monitor and maintain your financial progress.

Less Confusion: You would have had times when there was confusion due to miscommunication between your financial planner and accountant. Also, there might be situations when you would have miscommunicated the message that you received from one to the other. Some information is so complex that you might not have clarity on it. To avoid all this, having a financial planner as your accountant will make sure no information is lost and correct decisions are made while planning finances or while filing taxes.

The common goal of both accountant and financial planner is increasing your finances. Having one person handling both affairs with a holistic approach makes financial planning and filing process a smoother process and also that would mean peace of mind to you.

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