What Are Your Goals & Who Will Help You Get There?

Dear Zoe Experts,

I’ve been looking for tax planning guidance and am deciding whether to hire a financial advisor or an accountant. Both seem to be similar and help in their unique ways. However, I have very specific investment goals and need to know what characteristics to look for. How do I know which one is the right fit for me? 

—A Zoe Blog Reader

Dear Reader,

When it comes to managing your money, knowing who to turn to can be challenging. Depending on your situation, you may need the help of a financial advisor or an accountant. You’re on the right track! Hiring the right professional for your needs starts with knowing the difference between the two. 

Both accountants and financial advisors have essential roles in helping you manage your finances—but there are some key differences between the two professions. Financial advisors focus primarily on investments, while accountants focus more on taxes and other record-keeping aspects of finances. Additionally, financial advisors focus on helping you achieve long-term goals like retirement planning. Meanwhile, accountants focus more on short-term tasks like filing taxes yearly or preparing reports for investors. Let’s review both of these in more depth: 

Financial Advisor

A financial advisor helps you plan for your financial future by advising clients on investments, retirement planning, estate planning, insurance policies, tax strategies, and more. A financial advisor should understand your overall financial picture and provide advice based on your goals. They may also offer services such as setting up investment accounts or retirement plans that fit your unique needs.

When looking for a financial advisor, ensure they’re certified. Certifications should keep an eye out for are: Certified Financial Planners (CFP®) and Chartered Financial Analysts (CFA®). 

Professionals who hold a CFP® are knowledgeable in all areas of financial planning, covering more than 100 topics, and qualify for the certification through tests and work experience. 

Individuals with a CFA must complete three exams and have at least three years of work experience. CFAs also show accounting, economics, portfolio management, and security analysis knowledge. Additionally, CFAs typically work in portfolio management, research, consulting, risk analysis, and risk management.  

Accountant

An accountant works with individuals or businesses to manage their finances. Accountants are typically Certified Public Accountants (CPAs), trained in accounting principles and regulations. They can provide tax preparation, bookkeeping services, business consulting, budgeting assistance, auditing services, payroll management, business valuation services, and more. 

To acquire the CPA license, you need to meet specific requirements. Extensive education to become a CPA includes the CPA exam has four parts, and at least 150 hours of extensive education.   

Which One Is Right For You? 

The answer depends mainly on what kind of help you need when managing your finances. A financial advisor might be your better option if you’re looking for help with investments and long-term planning. However, an accountant may be better suited if you need help with taxes or other short-term record-keeping tasks.

How To Choose The Right Professional For Your Needs: 

When choosing a professional, it’s crucial to research potential candidates before deciding who is best for your needs. Look into their qualifications and certifications and any reviews from previous clients about their experience working with them. Sitting down with each candidate during an initial consultation would be best. You should hire someone you trust fully and who transparently lets you know they will work hard to meet your unique needs.

Bottom Line

When it comes to managing your finances or running a business efficiently, it’s essential to have access to professionals who can provide sound advice, explicitly tailored toward achieving your goals. Whether that means hiring an accountant or working with a financial advisor will depend greatly upon what kind of help you need most at any given moment—so take some time researching different options before making any decisions. 

If you’re curious where to start, you can fill out our form to find an advisor that fits your needs and helps you achieve your goals. 

Let us know if you have any questions on financial topics, and we’ll be happy to help and support you.