Financial Consultants and Accountants Work Well in Tandem

by Thom Tracy

2 min read

As a tax professional, you’re always on the lookout for ways to bring additional clients into the fold. A good way to do this is to create partnerships with professionals that fill gaps in the types of services you are able to offer. Often times, customers ask questions about securities and how their portfolios could be designed to reduce payments to the Canada Revenue Agency. At this point, it’s wise to steer clients to a financial consultant. Accountants should always step away from giving investment advice. That’s why it’s important to have a financial consultant who you can recommend. If your prospect drifts off elsewhere, you may lose a client.

Create a Partnership

Accountants and financial advisors both play significant roles in managing money for clients. As a tax professional, your goal is legally finding ways for clients to pay less to the CRA. Recommending stocks and bonds falls on someone else’s shoulders. But in a customer’s eyes, the lines blur between investments and taxes, as they tend to go hand-in-hand. For this reason, accountants and financial consultants make for a perfect marriage. Investors will always need tax advice, and taxpayers will always look for ways to make the most of their money. While you don’t personally offer investment advice, partnering with someone who does can lead to more clients and bigger revenues through referrals. Building a strong relationship with a financial consultant might take a little time and trust, but it makes for a cost-effective way to build your business.

Leverage Your Relationship

Now that you’ve found each other, develop a strategy to make the most of your partnership. Imagine your tax client has inherited $200,000 that currently sits in a savings account earning little interest. While you might have an opinion on how to invest it, you don’t want to cross the line from accountant to financial advisor. You don’t hold the proper licences and could not make any money from an investment recommendation. Any under-the-table advice you give could backfire, prompting legal action against you if the recommendation goes sour, but you can still directly benefit from the client through a referral to your trusted partner, who will make the right call for that customer. You can be sure, at the next opportunity, that your newfound colleague will return the favour.

Dogs and Ponies

What better way to create a sizzling partnership than to host a joint meet-and-greet seminar for clients. Rent a nice space, hire a caterer and reel in the revenue. These gatherings give you both an opportunity to put your talents on display. Customers that get to meet your “other half” will have an easier time calling for an appointment when the need arises. As an added attraction, invite a local attorney to form a three-member referral network. The road to a successful practise shouldn’t be travelled alone. Find like-minded professionals to share the drive and let that partnership fill your pipeline and boost your bottom line.

References & Resources

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