Why Accountants Should Pay Attention to Wealth Management

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Why Accountants Should Pay Attention to Wealth Management

Adding value for your clients is essential if you want a successful, long career and expanding business.

An accountant’s job description is “preparing and examining financial records,” according to the Bureau of Labor and Statistics. The duties of accountants have changed, though, as a result of new technologies, software, and client preferences. Clients today expect more from their accountants.

Why not venture into another fascinating facet of your client’s lives—wealth management—since you already have a lot of their financial data? Of course, entering this market will increase revenue, but the benefits go even further.

Wealth Management Provides Benefits to Your Clients

Adding value for your clients is essential if you want a successful, long career and expanding business. Tax preparation alone cannot provide value in the same way that wealth management can. It enables accountants to assist their clients in the following ways:

  • Increase and maximize their wealth
  • Manage your money and investments.
  • Reduce your liabilities and prepare for taxes.
  • Make estate plans.

Offering wealth management to your most valuable clients can help you grow your firm while also protecting them. There will be plenty of opportunities to advise your clients and increase their income, as the market outlook projects the industry to grow at a 10.7% CAGR between 2021 and 2030.

Furthermore, these services may help you attract more clients. Many wealthy people favor working with one firm to manage their finances and wealth over working with several firms.

Naturally, there are advantages for your own company as well.

Why Are More Accountants Offering Wealth Management Services?

In order to grow your business and serve your client’s interests best, you as a firm owner must balance these two goals. Wealth management will help you achieve both of these objectives because it allows you to:

  • Utilize increased sales and cash flow all year long rather than just during tax season.
  • To offer clients more, expand on your core services.
  • Increase trust through wealth management.
  • Convert potentially transient clients to long-term ones.

You want to provide a service that entices customers to visit you all year long. By providing wealth management, you can maintain a close working relationship with these people over time. You’ll establish a consistent income source and cash flow, which will make expanding your business much simpler.

Additional Services without Additional Costs

Sometimes businesses find it challenging to provide their clients with new services because they simply lack the resources or don’t want to devote the resources to doing so. If you’re in this situation, you still have options. For instance, you could collaborate with a business that can manage your clients’ wealth. For accountants who don’t have the time to focus on building a financial planning practice but still want to offer financial planning and wealth management services, using a system like this is ideal.

Starting Out on Your Own

Bring the entire process in-house if you don’t want to collaborate with another wealth management company. For businesses with the resources to create, implement, and maintain financial plans and products, providing wealth management services in-house is a fantastic option.

To gauge the amount of work involved, accounting firms frequently begin by providing this crucial service to just one or two clients. Along the way, you will need to determine things like:

  • Structure of Fees
  • Procedures and processes that must be followed
  • The scope of each service you’ll offer the potential to bundle services

When introducing new services to clients, there is undoubtedly a learning curve. Don’t think you have to face the learning curve by yourself. Think about collaborating with a company that educates accounting firms seeking to provide wealth management services to their clients. With the right program, your business can easily start providing these services.

Finally, the opportunity for accounting firms to broaden their clientele through the use of wealth management is increasing. By entering this developing market, you can broaden your sources of income, establish a consistent cash flow, and deepen your connections with the clients you already serve.

Given the 10%+ CAGR expected over the next decade, combined with your clients’ desires, it only makes perfect sense to enter the wealth management industry now, while it is experiencing rapid growth.

The tax laws are very complex. Our short blog articles cannot cover in full all the nuances of the rules. Your specific facts may hold various opportunities and possible risks that only trained, experienced, and highly qualified tax specialists can spot. We encourage you to find such help, rather than trying to figure it all out on your own. Consider giving this marketplace a try by posting your project and signing up here.

If you are a licensed tax professional and are interested in helping others either part or full-time, or ad hoc, come on in! Happy to have you. Our marketplace has the full suite of tools to communicate with clients including compliance calendars, task and message management, and billing. You can also quickly connect to knowledgeable colleagues who can complement your services with the ones you do not provide. Register here

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[…] Adding value for your clients is essential if you want a successful, long career and expanding business. An accountant’s job description is “preparing and examining financial records,” according to the Bureau of Labor and Statistics. The duties of accountant  […]

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