Financial Advisor vs. Accountant – Why Can’t YOU Just File My Taxes For Me?

Great question!  Although, I’ll say – never use the word “just” with an accountant; it really seems to irk them.  

Financial advisors and accountants have, since the dawn of their licensing, been mistaken for one another.  To the average user, financial advisors and accountants sound similar.  We often look similar, and like to talk about the same things, normally starting with a dollar sign. There are many unique differences, and it’s good to understand why you need both!

Let’s assume that everybody you potentially may work with has the proper certifications. It’s easy to look these up on the regulatory body websites, assuming you can spell the name correctly (people always leave out the second A in my name, for some reason).

Accountants are fantastic at helping with tax planning, organizing your financial life, and filing returns of every type (personal, corporate and trust). They are tax experts and know the ins and outs. Also, they know what is deductible and what is not.

Financial advisors focus more on long- term strategizing, investment and insurance management, and cash flow. We help allocate assets and ensure that, financially, you are on the right track, and how to get you to where you want to be.

Most individuals and business owners who are serious about moving forward in a meaningful way need both. In our practice, we highly recommend that a professional accountant is used for filings, and often request an introduction at the beginning of the relationship, so that the work is aligned in the best interests of the clients.

Favourite lines with clients include, “You should discuss this with your accountant” or “What does your accountant think?” A team approach is definitely beneficial, and open dialogue opens many doors. Your best bet is to ensure that your financial advisor and accountant are introduced, and everyone is clear on what your goals are. To a good financial future!