Financial planning must have a holistic approach – that’s the order of the day. The advent of CPA firms has made it possible for us to reach one firm for all our needs, such as children’s education, retirement, investments, and so on. The CPA’s role is to help organize all our resources in order to preserve or grow our wealth. This covers minimizing our taxes, our retirement benefits, insurance, as well as investments.
A professional CPA is someone who can establish a healthy relationship with their client; gather extensive data, analyze the existing financial resources, evaluate the financial status, draw up a sound financial strategy, execute the plan and monitor the growth level of the funds. The CPA would also be required to provide sound advice on various investments and savings.
Process of Financial Planning
Financial planning is a process strategized and implemented, and the relationship with a CPA is for the long term.
- The initial meeting will ensure that there is a great level of understanding between you and the CPA. This is when we gain confidence in their services and begin our financial planning journey.
- The CPA will also need to know a great deal of information, qualitative as well as quantitative. This would cover financial information such as income, expenses, assets, etc., and non-financial information such as expectations, the standard of living, family’s health, and discuss unexpected emergencies.
- It will help if our short-term and long-term goals are clearly stated to our CPA. Our financial planner will then be able to prioritize our goals in order of importance and our ability to meet those goals.
- Be prepared to disclose personal financial statements, budgets, wills and trusts, settlements, income tax returns, insurance policies, retirement plans, and the list continues.
Benefit from the Professional Expertise of a CPA
There is no predicting the future, but nothing stops you from being prepared. A desire to buy a home, to send our kids to college, and have a healthy bank balance at retirement age will require the expertise of a strong CPA.
Naturally, we all want to maximize our existing financial resources with the tools at hand in order to achieve our financial goals. That’s financial planning. Every one of those steps can be outlined by our financial planner and reinforced with careful strategies.
We all need guidance on our finances unless we are CPAs. Whether starting a business, growing an ongoing business, or managing personal finances, seeking the right accounting firm is the smart way to go.