The world of personal wealth management and financial planning is complicated. The world of business tax and accounting is as well. If you are a small business owner, these are two worlds you are very familiar with and, chances are, you are keeping them separate. This means you are often the middle man between your accountant and your financial advisor, meaning you are communicating with your advisor things covered by your accountant, and vice versa. 

People often associate financial planning with portfolio management and retirement planning, but financial planning has developed over the years. Today, most financial planning firms take a far more comprehensive approach to cover things like financial coaching, cash flow analysis, portfolio analysis, risk management, estate planning, insurance planning, education planning, etc.

With the evolvement of the financial planning industry comes a new standard all small business owners should be striving for: having your accountant and financial advisor working together, not in competition.

Small business owners are wise to allow the financial advisor to quarterback their individual financial picture, and the CPA quarterback the business finances. But for private firms, there is much crossover between the business owner’s personal finances and the business’ finances. For example: CPAs can often identify tax efficiencies and savings, and the advisor might better understand how this fits into your big picture. CPAs can help project your estimated tax payments for the business for the coming year, while the advisor can use that information to help determine your cash flow options for the coming year.

Another advantage to having your advisor and accountant working together is to be sure they possess similar values and goals, and that they align with your own. Be sure the first value they hold is a commitment to excellent service. You want to be sure the advisors who are talking with each other share a common goal of helping you succeed. Aligning your business and personal finances puts you at a greater advantage when achieving success in both your business and personal life.

It is a new concept because, often, accountants and advisors see each other as competition. Both want to help control your assets. Often CPAs offer personal financial management as well. There is a common saying that the jack of all trades is master of none. This can apply here. It is more advantageous to you to have a CPA knowledgeable in your field of business, who works cohesively with an advisor who specializes in helping people reach their individual financial goals.