ACCOUNTANT VS FINANCIAL PLANNER

This
goes along in conjunction with the last Three Part Post from yesterday
-- I hope it is helpful to someone -- I spend hours of researching
and reading going through a maze of articles before finding gems to
share - they are out there - it just takes time to find them - I am
saving a lot and putting together a notebook for future reference --
it is way too much to expect to recall from memory - Have a Great Day
!
UNEEK


The Difference Between Your Accountant and Your Financial Planner By Nora Dunn

Many business owners surmise that their accountant can do the job
of both accounting and financial planning (or vice versa) when in fact,
the two roles complement each other. Neither professional can do the
entire job of the other.

When I was a Certified Financial
Planner (CFP), I prided myself on the designation which took me years
of both study and professional experience to earn. I boasted a broad
base of knowledge that included some pretty intricate tax planning
idioms and strategies. When it came time for me to file my taxes, I
obviously knew more than enough to get the job done well.


However, in developing a repertoire of accountants who I could
recommend to my clients, I figured the best way to recommend a
professional is to attest to their service from experience.




I took my
(already drafted) taxes to the accountant for filing and in 20 short
minutes, he worked his magic to save me an additional $3,500 in taxes.
I'm not sure what I missed or what he did, but it sold me on the concept
that accountants and financial planners offer complementary roles to
business owners.

What Your Accountant Can Do For You

Quite obviously, the buzz word for accountants is "taxes" and
everything to do with taxes. From strategizing to sheltering to
budgeting and tax preparation, this is their main focus. This is also
quite a broad category that encompasses so much more than what appears
on the surface.


If your business is still small, or if you are a whiz with numbers, you
may wonder why you need to spend money on an accountant. Your tax
preparation software is intuitive, and your situation is fairly simple,
right? (Hey, I thought so too.)

What your accountant can also do is identify big picture
opportunities and strategies that will help you get — or stay — ahead.
Are you depreciating all the right assets in the most productive way? Is
your business structure good for you now and in the long run? How does
the fine print in the most recent changes to tax laws affect you, and
are there any opportunities therein? Your accountant should have a deep
knowledge of these issues.

Here are some of the issues an accountant can help you with:

Tax preparation

Financial statements

Depreciation

Breakdown of expenses

Appropriate tax shelter recommendations

Tax laws and how they affect you

Business structure recommendations and advice

Business growth and succession strategy in relation to taxes

Audit representation


Accountants generally charge an hourly fee for their advice, and
thus are quite task-oriented. You will usually need to be specific about
how you want your accountant to help you, but their breadth of
knowledge can be deep.

What Your Financial Planner Can Do For You


If accounting is all about taxes, then financial planning is all
about investments — but just as accountants can offer so much more than
filing your taxes, so too can financial planners do more than invest
your money.


Financial planners are also (ideally) focused on the big picture, but
the picture in question is a little different from the one accountants
look at.

Financial planners are very goal-oriented
and holistic, with an eye to building wealth in the most effective
manner while taking into account the life goals and needs of clients as
individuals.

For business owners, financial
planners often provide a more comprehensive look at how your business
fits into your life overall — both from a logistical perspective as well
as an emotional one.


Similar to accountants, financial planners are experts in their
field and will identify opportunities that you might not know about even
if you're well-read and financially savvy.

Have
you thought about how the dynamics of your family would affect your
business in the event of an emergency or unforeseen circumstance? What
is your business succession plan, and are you maximizing succession
opportunities? Are you truly invested within your comfort zone while
maximizing your opportunities for growth?

Can you
take the (sometimes irrational) emotion out of investing to make the
best decisions for you and your family in the long run?

Here are some of the things your financial planner will focus on:

Budgeting

Investing (short, medium, and long-term, in a variety of vehicles)

Asset allocation

Estate planning

Insurance planning (disability, life, investment, shareholder protection)

Changes in the industry that affect you

Business structure and strategy tips

Wealth accumulation and protection


In contrast to accountants, financial planners can be paid in a
variety of different ways. The three main forms of payment are
commission-based, fee-based, and asset-based. Commission-based planners
earn a percentage commission on money you invest with them or insurance
policies you buy.


This unfortunately means that not all commission-based planners may
have your interests at heart, but not all commission-earners are to be
judged as pushy salespeople.

Fee-based planners
will charge a flat fee for a set service, and asset-based planners
charge a percentage of your overall assets invested with them. In
choosing the best advisor for your needs, asking how they are paid is
important but not solely pivotal.

Gray Areas


You may find a financial planner or accountant who seems to provide
the whole enchilada. For example, increasing numbers of accountants are
broadening their expertise to include additional designations in
financial planning so they can do just that; separate advisers,
financial planners and accountants have many overlapping areas of
knowledge and advice.


While it may be appealing to have an adviser who can provide
one-stop-shopping for you, your business, and your family, I still
support the idea of creating a financial team to support you —
specifically your accountant, financial planner, and lawyer.

Each
of these experts has a broad base of knowledge and will bring a viable
perspective to the table that can also keep the other advisers in check.
Each of these fields is an entire degree unto itself and should be
respected as such. No one advisor can truly do the job of all three (or
even two) without letting something slip through the cracks.

What to Look for in a Financial Planner and Accountant


When looking for a financial planner or accountant, the best way to
find somebody you will trust is to get a referral. Ask family, friends,
and colleagues who they use and schedule a meeting with that adviser.


They should provide the initial meeting free of charge and should
take an active interest in getting to know your comprehensive situation —
both personal and professional. Ask how accessible they will be when
you need advice and what their proposed service strategy is.


Look for a professional with a designation or degree, such as the
internationally recognized Certified Financial Planner designation. Ask
how they're paid; if it is an hourly wage (as is often the case with
accountants), get an annual estimate given their knowledge of your
situation.

Also,
make sure the professional in question is familiar with specific
legislation that might be applicable to your situation. For example, if
you have an international or location independent business, your
accountant should be an expert on international tax law and your
financial planner should know how best to structure your assets to be
internationally accessible.


By building a team of experts who support you and your business, you
stand the greatest chance of achieving everything you want,
professionally as well as personally. You work hard on — and in — your
business. Aren't you worth it?

http://www.wisebread.com/small-business/the-difference-between-your-accountant-and-your-financial-planner?wbref=readmore-3

The good news is, I have both and Uneek is "right on" with this article. I couldn't have written a better, more accurate article myself. (Thats for sure!)

The bad news is, when I told them I bought Dinars a few years back, they both told me I was an Idiot!!

I'm starting to fear they are smarter than I gave them credit for:(

If this never RV's, only then will we be idiots- Keep that in mind-

terbo56 wrote:If this never RV's, only then will we be idiots- Keep that in mind-

I'm with ya Terbo!!! So, I have only been an Idiot for about 4 years now (and counting).

Hopefully I will become very smart..................SOON................

Well, then, we're BOTH idiots!:shock:

terbo56 wrote:Well, then, we're BOTH idiots!:shock:

We probably won't find anybody here to argue that!!

Well for me at least I have always considered this a

Kevin you are really good at coming up with some neat pics !!

All in the eye my friend, all in the eye. I bought my first 35mm camera when I was 11, and had my own darkroom for many years. So I have been a photographer for ... umm ... errr a long time!