Why make the transition from accountant to financial advisor?

Have you become bored with preparing tax returns every year? Have you thought of becoming a financial advisor? It will take time and effort, but making the switch can pay off. 

Advisors who begin as accountants blend their tax expertise with financial planning. If you broaden your scope of services, you could improve your job satisfaction and build stronger relationships with your clients. Just think about the possibilities of providing your clients with an investment management style that’s fine-tuned with being tax-sensitive.

The transition from accountant to advisor demands quite a steep learning curve. Tax planning is only one aspect of financial advising. There are other intricate aspects like:

  • investment management,
  • risk management,
  • estate planning,
  • and retirement planning.

If you’re an accountant who wants to become a financial advisor, you’ll need to expand your technical knowledge of all these areas. It may take a lot of in-depth studying and on-the-job training.

Why you might switch to financial planning

1. You seek a fresh challenge
2. You crave a different dynamic with your clients
3. You’re bored with preparing tax returns every year
4. Most elements of financial planning are impacted by taxes
5. Your accounting background can enhance your credibility as a financial planner

Your accounting knowledge could help to size up your clients quickly by reviewing their tax returns. You’ll know where to look for clues to get a better understanding of their finances.

Most financial advisors with tax expertise tend to focus on providing comprehensive financial planning for their clients. But many of them would rather partner with a CPA who specialises in tax returns – freeing them up to look beyond all the tax forms and focus on planning a client’s wealth.