every client can use financial planning

and accountants are perfectly positioned to offer it.

by ed mendlowitz
the 卡塔尔世界杯常规比赛时间 practice doctor

“financial planning services” is a catchall phrase for any services a client would need for their personal financial security and wealth management and is an outgrowth of tax services and any of the other core services performed for a client. these services can be offered to existing clients or to clients engaging you for the specific service.

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with regard to tax services as the catalyst, the tax return is the roadmap of a client’s financial life. a keen observer can uncover many areas clients can be assisted with.

the following are illustrations and examples of additional services that can be provided to tax clients. there are many others, but these appear to be the most common.

the aicpa issued financial planning standards that apply to aicpa members and i suggest you get a copy of the aicpa statement on standards in personal financial planning services no. 1 at www.aicpa.org. it is very informative and would be helpful in formulating a plan to get more involved in offering these services to your clients. the statement also has a comprehensive engagement letter that you can adapt to your practice.

the aicpa statement pertains to the following services:

• cash flow planning
• risk management and insurance planning
• retirement planning
• investment planning
• estate, gift and wealth transfer planning
• elder planning
• charitable planning
• education planning
• tax planning

financial planning is the service clients need to better handle and manage their finances, investments and long-range plans. financial planning is what will provide a client with the right degree of individual security about their future and assure them that what they are doing is on target to achieve whatever it is they wish to achieve.

financial planning involves

• helping a client define and articulate their goals,
• setting a method of attaining those goals,
• investing in a favorable manner,
• proper family budgeting and
• sound tax planning.

following are some additional personal financial planning areas of involvement:

• divorce tax planning
• life insurance proposal analysis
• personal bankruptcy advice and explanations
• social security optimum starting date
• 401(k) and 403(b) investment decisions
• explanations of various types of mutual funds
• certificates of deposit (cds) and bond investments
• mortgage refinancing decisions
• buy versus lease choices
• risk and insurance needs assessment

who needs this service?

everyone needs personal financial planning. financial planning is something we generally give away for nothing while we are getting tax information or doing year-end tax planning.

why the accountant is suited to offer this service

the accountant is probably the best qualified all around to advise and guide the client. we certainly have the tax part mastered. our experience with taxes also makes us not only extremely knowledgeable in investment alternatives, but our range of clients and their continuous calls makes us a clearinghouse for real-time data about what clients are thinking and doing, and what is available in the marketplace. the accountant is called upon many times to advise clients on family budgeting and assistance in helping them plan for all stages of their life – a child’s college, assisting their parents in their final years, their own retirement, the business they might want to buy or start, the possibility of an early and untimely death, and the eventuality of death.

the continuing education of accountants provides much of the background that supplements our hands-on everyday experience.

posted on may 3, 2023