Jul 25, 2024

Our insights

Financial advisers and accountants work best when they work together.

It is a mistake to think you need one but can do without the other.

Understand the two professions offer distinctly different but complimentary services.

In really simple terms, regulations dictate an accountant is not legally allowed to give financial advice and a financial advisor is not legally allowed to give tax advice.

There are many instances when it not only makes good sense but is critical to have both on your team.

What role does your accountant play on your team? 

Accountants monitor, execute and report your financial data.

They work hard to keep abreast of the ever changing regulations surrounding taxation and can advise you how to best legally work within that framework for your personal circumstances.

This is especially important at the end of the financial year when you are required to report your yearly earnings and tax status to the ATO.

Their role extends to advising on cash flow and tax implications with investments and superannuation.

Accountants are also important to engage when starting a new business entity and deciding how to best structure it.

They can also:

• Analyse profits, costs and trends

• Manage budgets

• Ensure regulatory compliance

• Process payroll

• Oversee audits

• Manage insolvencies

• Advise on record keeping requirements 

What role does your financial adviser play on your team?

The chief purpose of financial advisors is to facilitate wealth creation and mitigate risk.

They do this by building a financial plan for their clients based around their life goals, advising them how to best invest their assets, whether that be in property, shares, bonds, business interests or a mixture of all.

They are also heavily invested in not just the creation but the protection of people’s assets.

This can include strategies around legacy, including estate planning, succession and other related matters.

It also includes advice on insurance strategies and products, such as life and TPD.

The role of your financial adviser may also extend to:

• Managing investments including your super fund

• Strategies relating to buying and selling shares or other investments

• Risk management

• Planning funding goals such as your children’s education

• Offering advice on budgeting and money management

• Education and support 

Working together

When financial advisers and accountants work together, they can optimise the outcome for their clients by drawing on their joint expertise and talents.

It is about engaging two experienced professionals with complementary skill sets, working as one for your benefit.

Generally speaking, growing your wealth relies on investing for the long term with a diversified strategy.

But you also need to maximise your tax advantages along the way, ensuring you comply with tax laws and reporting your investments and profits as required.

There are many scenarios where a financial adviser and accountant ideally work together, which could include:

Starting a business

Financial adviser: Advises about business opportunities, gaps in the market and potential for future growth.

Accountant: Sets up business structure, with an eye on compliance and tax implications.

Buying a house or investment property

Financial adviser: Advises on strategy, the potential for capital return and, with a qualified mortgage broker, finding the best mortgage product for your circumstances.

Accountant: Advises on affordability, cashflow, tax benefits or other financial opportunities and strategies.

Investing in the market

Financial adviser: Advises on the investing strategy and the types of shares you should consider.

Accountant: Advises on the tax consequences of your investments.

Planning for retirement

Financial adviser: Creates a retirement plan including strategies around superannuation, investments and pensions to ensure you are able to afford your desired lifestyle when you stop or reduce work.

Accountant: Focusses on tax strategies, structures and budgeting to advise on the best ways to steward and maximise your income from today and through retirement. 

Get advice today

Accountants are your right hand man at tax time.

But so many people make the mistake of thinking they can get enough financial advice from their accountant to see them through.

This could not be further from the truth.

Regulatory laws in Australia prohibit accountants from offering financial advice.

That is why you need a financial adviser to help you develop a wealth plan through every stage of your life.

Having your financial adviser work in tandem with your accountant is how you can then unlock the real power of everything experienced financial professionals offer.

At Calder Wealth Management we will work with your accountant to ensure no tricks are missed, meticulously plotting your wealth accumulation strategy while taking advantage of every tax benefit on offer.

We can recommend investing in assets tailored specifically to your personal circumstances and time horizons with the view of reducing your tax liabilities in both the short and long term.

At Calder, we pride ourselves on leading our clients into the future with structure, financial stability, confidence and security. 

Written by Jodie Schroeder

The information contained in this article is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.

Taxation, legal and other matters referred to on this website are of a general nature only and are based on Calder Wealth Management’s interpretation of laws existing at the time and should not be relied upon in place of appropriate professional advice. Those laws may change from time to time.

Calder specialises in wealth management with a focus on advice, investment, sustainability, insurance and finance.