The symbiotic relationship between advisers and accountants
A team of specialists can provide a better experience for clients, according to Findex, with advisers and accountants urged to have a close relationship.
A financial adviser’s role is to focus on managing investments, strategic growth and long-term financial planning, while an accountant deals with managing taxes, ensuring compliance and daily financial health.
Effective collaboration between the two professions can help clients manage their finances more efficiently, as well as provide referral opportunities between the two professionals.
Findex gave multiple examples of when two professionals would work well together, such as strategic tax planning, optimising superannuation contributions, building income streams for major life goals, and managing retirement income streams.
Bradley Sweeney, partner at Findex, said: “Financial advisers and accountants bring different skills to the table, but when they work together, the results can be magic. Think of your adviser as the architect of your financial plan.
“On the other hand, your accountant is like the engineer who ensures that the plan is built on solid ground. They handle the nuts and bolts of your finances – the everyday accounting tasks that keep everything running smoothly.
“When these two professionals communicate and collaborate, you get the best of both worlds.”
On the other hand, there can be financially damaging consequences for portfolios if the two parties are misaligned and provide inconsistent advice. This could lead to missed financial opportunities for clients, lack of coordination on financial goals, poor decision-making, and confusion, potentially hindering the crucial relationship with the client.
“It’s not just about having the right people in your corner – it’s about making sure those people work well together. When your financial adviser and accountant form a strong partnership, it can result in better financial outcomes for you, whether you’re planning for retirement, growing your wealth, or managing a complex portfolio.”
There are just over 15,000 financial advisers in Australia, but accountants are present in far greater numbers at around 200,000.
The comments follow findings by HUB24 in its high net wealth report, which recommended advisers need to act as a “connector” of clients to other specialists such as accountants and lawyers. Areas where these high-net-worth individuals seek specialist expertise range from tailored portfolio construction to business succession planning and private banking.
“The leading advisers in this space act not as oracles who ‘know it all’ but as the directors of a matrix of providers and experts who all work together to support the needs of HNW clients.”
Recent findings from Viridian Advisory show that over 70 per cent of financial advisers regularly work with other specialists in tax, aged care and estate planning to meet increasingly complex client needs. Meanwhile, 93 per cent of advisers find that the skill set required for financial advice has become complex over the past five years.
AUTHOR
Laura Dew
Recommended for you
With North reporting its fastest six months of AUM growth in managed accounts, AMP says the vehicles have become a “foundational element of financial advice” for their efficiency benefits.
High-net-worth advice firm Multiforte Financial Services is to merge with Sydney advice firm Lorica Partners as it proactively seeks succession for its staff and clients.
Shaw and Partners has reached $3 billion in funds under management on its separately managed account, and the firm is eager to expand the offering.
Shadforth CEO Terry Dillon has told Money Management the time is right to pursue inorganic growth as it seeks to double in size by 2030 and acquires a Melbourne advice firm.
