For many families, one of the smartest financial decisions isn't choosing between a CPA and a financial advisor.

It's having both.

The two professions have different areas of expertise, but when they work together, clients often make better financial decisions than either professional could provide alone.

The CPA Is Often the Quarterback

I've been a CPA for more than 25 years.

During that time, I've developed tremendous respect for the work CPAs do.

A good CPA understands a client's income, business, tax returns, deductions, family situation, and financial history better than almost anyone.

CPAs help clients:

  • Prepare accurate tax returns.
  • Navigate changing tax laws.
  • Structure businesses.
  • Solve complex tax problems.
  • Avoid costly mistakes.
  • Plan for major life events.

Their advice often saves clients significant amounts of money.

Simply put, a good CPA is invaluable.

Where a Financial Advisor Adds Value

Retirement planning often raises questions that go beyond preparing this year's tax return.

Questions such as:

  • Can I afford to retire?
  • When should I begin Social Security?
  • Should I make Roth conversions?
  • Which accounts should I withdraw from first?
  • How should my investments change in retirement?
  • How do I create reliable retirement income?
  • What happens if one spouse dies?
  • How can I leave assets to my children as tax-efficiently as possible?

These questions involve taxes, but they also involve investments, retirement income, longevity, estate planning, and financial modeling.

That's where a financial advisor can add value.

Better Decisions Through Collaboration

Some of the best planning opportunities occur when a CPA and financial advisor work together.

For example:

A financial advisor may recommend a Roth conversion.

The CPA helps determine the tax impact.

Together, they can evaluate how much to convert without creating unnecessary taxes.

Or consider retirement income.

A financial advisor may recommend withdrawing from multiple account types over time.

The CPA helps evaluate the tax consequences of that strategy.

Neither professional is replacing the other.

The Client Benefits Most

When professionals communicate with one another, clients spend less time coordinating advice themselves.

Important decisions become more informed.

Planning opportunities are less likely to be overlooked.

Clients gain confidence knowing their professionals are working toward the same goals.

In our experience, collaboration often leads to:

  • Better retirement decisions.
  • Lower lifetime taxes.
  • More thoughtful retirement income strategies.
  • Better coordinated estate planning.
  • Fewer surprises.

Respecting Each Profession

We don't believe financial advisors should prepare tax returns.

Likewise, we don't expect CPAs to specialize in investment management, retirement income planning, or financial modeling.

Each profession has its own body of knowledge.

Each requires years of experience.

Each plays an important role.

The goal isn't for one professional to replace the other.

The goal is for each professional to do what they do best.

That's How We Work

As both a CPA and a financial advisor, I've had the opportunity to see both sides of the table.

One thing has become very clear over the years:

The best client outcomes usually come from collaboration.

Whether a client already has a trusted CPA or is working with another professional, our philosophy is simple.

We believe everyone should be working toward the same objective:

Helping clients make better financial decisions. 

Shawn Clagg, CPA
Partner, 360 Wealth Management