{"id":98260,"date":"2022-06-08t12:00:11","date_gmt":"2022-06-08t16:00:11","guid":{"rendered":"\/\/www.g005e.com\/?p=98260"},"modified":"2023-05-04t10:24:24","modified_gmt":"2023-05-04t14:24:24","slug":"ask-these-10-questions-before-adding-financial-services","status":"publish","type":"post","link":"\/\/www.g005e.com\/2022\/06\/08\/ask-these-10-questions-before-adding-financial-services\/","title":{"rendered":"ask these 10 questions before adding financial services"},"content":{"rendered":"

\"\"<\/a>remember it\u2019s a new business.<\/strong><\/p>\n

by ed mendlowitz<\/i>
\n101 questions and answers: managing an accounting practice, the complete 2-volume set<\/i><\/a><\/p>\n

q: <\/strong>i am thinking of adding financial services to my practice. what are your thoughts?<\/strong><\/p>\n

more: <\/b><\/strong>selling your practice is not a retirement strategy<\/a> | thirteen things to know before selling your practice<\/a> | 10 reasons clients don\u2019t pay<\/a>
\n\"goprocpa.com\"exclusively for pro members. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n

a:<\/strong> for starters, \u201cfinancial services\u201d means selling investment products or managing money. this is different from adding financial planning, which i see as an extension of and a next step to sound tax planning for clients.
\n
\ngetting into the financial services business requires tremendous effort, training, licenses and a long startup period until a critical mass can be attained where there will be a reasonable cash flow and profit. this business involves the ability to sell and then deliver. many large organizations thought cpa practices could be fertile ground for additional business, and companies such as american express and h&r block acquired cpa practices to get access to the tax clients who would need \u201cproduct\u201d or investment management. i only know what i read, but they seemed to be glad to get out of this business because they sold the practices they bought at big losses. i can only assume the model did not work \u2013 accountants weren\u2019t able to sell these products and services.<\/p>\n

i also get many calls \u2013 as many from financial planners in brokerage and insurance firms inquiring about opportunities to work in cpa firms. some of them, after working a dozen or more years, weren\u2019t earning reasonable incomes for their stage of life and they know they would have done better had they started out in, or not left, public accounting, and now want to get back in.<\/p>\n

many accountants ask me this because they believe they can make more money. my first bit of advice if they want to make more money is to try to do more of what they are already doing in their current practices.<\/p>\n

however, not to beat a dead horse \u2013 here are some specifics to consider.<\/p>\n

1. prepare a business plan and think about:<\/p>\n