CPAs as Financial Planners

Source:  Practical Accountant

What makes CPAs uniquely qualified to provide financial services to their clients?

·    They really care about their clients.  Other financial service providers don’t perform as well on this score.

·    Their natural skepticism is valuable when considering product offerings.  They keep their clients away from inappropriate investments.

·    They are very analytical. But, this can be bad if it inhibits decision-making.

·    They are good at “quarterbacking,” coordinating the work of other professionals.

What are some of the opportunities for CPAs?

·    Tax clients offer good financial services opportunities.

·    An H.D. Vest survey “found that CPAs converted 26% of their tax clients to investment/financial planning clients.”  Some feel this percentage should be greater.

·    CPAs can improve their ability to identify opportunities for their clients by gaining a better insight into their clients’ financial circumstances.  They should spend more time at it.

·    The best way to bring in a financial services client is to first get them as a tax client.

·    Most referrals to CPAs occur without solicitation.  CPAs can dramatically improve their rate of referrals by asking for them.  They should also set up more effective referral networks.

CPAs sometimes fail at marketing financial services because of their need to be in control of the client.  But financial planning requires a team of experts and typically none of them has a depth of knowledge in all the areas.

For the complete article, see Practical Accountant, February 2005, or go to