The CPA-Wealth Advisor Partnership: Unlocking The Power of Collaboration
By: Steven Topal and Marc Specht
When Marc Specht, Partner, and Wealth Advisor for PM Wealth Management, approached Steven Topal, a Partner in the Prager Metis Tax and Accounting Departments, about growing the wealth management side of the firm and collaborating with the tax and accounting teams, Steven was hesitant, to say the least.
Historically, the CPA would offer tax planning and preparation services. The wealth advisor would offer financial consulting and services ranging from investment management to insurance, retirement, and estate planning.
Accounting and wealth management would rarely, if ever, cross paths. In many cases, one side would see the other side as a threat to the client relationship or, at the very least, a conflict of interest.
Despite Steven’s reservations, he supported Marc’s efforts. Today, Steven has done a complete 180 on the relationship between accounting and wealth management. Once the biggest skeptic, Steven is now the biggest proponent of such collaboration.
How Clients Benefit from the CPA-Wealth Advisor Relationship
“This relationship allows us to identify opportunities for the client that one of us might not have seen,” Steven said. “Marc can identify wealth planning opportunities and I can identify tax opportunities. At the same time, we are constantly learning from each other, so we know what to look for and what questions to ask.”
“I always discuss life events and changes with clients,” Marc said. “Maybe they’re in a position to inherit a lot of money in the near future. They could be dealing with a pile of medical bills because of a serious health issue. These clients need expertise from the tax and accounting side, so they feel comfortable with their decision-making.”
Whether balancing capital gains and losses, purchasing/selling a property, paying for higher education, planning for retirement, or converting to a tax-free Roth IRA, these and other decisions needed to be analyzed from both a tax perspective and a wealth planning perspective.
This collaborative approach actually strengthens the client relationship for both accounting and wealth management because they bring more collective value to the table.
In addition to identifying opportunities some key advantages for you and your clients are:
- Avoid potential missteps.
- Make more informed decisions.
- Improve the client’s financial position.
Benefits to the Firm
The benefits derived from the client-CPA relationship extend beyond the clients themselves. When CPAs and wealth managers build trust and collaborate, it amplifies the advantages for all parties involved. Trust and collaboration between CPAs and wealth managers engenders more loyalty from the clients, leading to longer-term relationships and more business for the firm.
“My philosophy is that accounting is a commodity, but solid relationships last forever,” Steven said. “Every single thing we do to help the client strengthens the client relationship. Marc is collaborating with clients who have been with me for 40 or 50 years. That is not an exaggeration. You cannot put a dollar value on that level of trust.”
The relationship between accounting and wealth management can broaden the scope of services the firm provides. As it elevates the relationship with each individual, it creates a stronger overall relationship with the firm as a more holistic resource. Peers within the firm see the results of this relationship and embrace collaboration as a way to strengthen their relationships and build their own book of business.
“If you’re not in communication with each other, you don’t know what you don’t know,” Marc said. “As a wealth advisor, having Steven as a resource from the tax side adds a layer of expertise to the services I offer my clients. Clients appreciate the collaboration and team approach. Everyone wins.”
By offering a deeper level of expertise we are providing a higher level of competence, opening doors for expansion, and promoting loyalty. This creates more opportunities for growth.
Making Collaboration a Standard Practice
Effective communication is the solution to most problems in life and business. Taxes and investments are no exception.
At Prager Metis, our CPAs will not hesitate to seek the perspective of PM Wealth Management, with the client’s permission. Our team of professional CPAs draws on the knowledge of PM Wealth Management if we encounter any areas requiring clarification or additional insights during tax planning or return revisions. Similarly, PM Wealth Management readily seeks the advice of Prager Metis CPAs to acquire a thorough grasp of the tax ramifications of customers’ financial and investment decisions.
When both sides are truly focused on the client’s best interests, there is no conflict of interest or stepping on toes. This mutually beneficial approach ensures that neither the client nor the firm experience any drawbacks. Ultimately, this client-centric mindset and approach add substantial value to the overall partnership in terms of confidence, peace of mind, and generating tangible financial benefits.
If you are interested in a holistic approach to accounting and wealth management that enables you to identify opportunities and make more informed decisions, contact us today to schedule a consultation.
