Should I Call a CFP®, a CPA, or Both?

Unless you work in the financial world, it can be difficult to keep track of the many acronyms and accreditations flying around. A certified financial planner (CFP^®) and a certified public accountant (CPA) both work to organize your finances, but they'll do so in different ways. In general, CPAs will focus more on auditing and tax preparation, while a CFP^® will make it easier for you to find long-term investments that work for you. Learn more when to choose one over the other, and when you definitely need to have both to keep track of your assets.

You're Struggling with Your Taxes: Call a CPA 

There's a reason why CPAs exist, even with the existence of the EZ forms the government offers. The "simplest" of forms can have a world of implications if they're filled out incorrectly. Plenty of people end up paying far too much in taxes every year because they don't understand how the tax code works and what they'll need to prove if they're audited by the IRS. And because the tax code isn't static, they may be entirely unaware of how one seemingly tiny adjustment can cause a world of headaches. A CPA is trained to not only walk you through the forms but also provide proactive tips on how you can make your tax experience a lot smoother.

If You're Looking For Overall Financial Planning: Call a CFP^® 

It's never too early to start planning for important events for the future, such as college funding, retirement planning, wealth accumulation, estate planning, and risk management. CFPs^® have different levels and areas of expertise and strengths, they're not all the same. It's important to align yourself to a CFP^® that is suited to your specific situation and needs. Some CFPs^® do provide portfolio management services and others are pure planners. A good CFP^® should be able to give you some guidances around your taxes to discuss with your CPA. 

Financial Wealth Stability 

Many individuals will seek to have a CFP^®, CPA and estate planning attorney to guide them, because all three professionals have very different training and different ways of interpreting situations and can collaborate together. The result is an enhanced experience and better outcomes for the client. Beware of CPAs who try to wear multiple hats. CPAs and CFPs^® have different expertise and training. 

Looking Down the Road 

Generally, you're going to be communicating more with your CFP^® throughout the year and your CPA around tax time or tax planning. Remember, that your CFP^® should be part of those conversations, because of their big-picture understanding. An estate planning attorney often comes into play periodically when there are legal updates needed.