There is a multitude of information out there on how to manage money, both of the true and misleading variety, which makes it difficult to sort through the millions of results to decide what’s relevant to you and who to turn to. Fortunately, there are professionals who help people and businesses alike manage and invest their finances.
When looking into the question of how to manage your finances, you’ll often come across information regarding both accountants and financial planners. These two professionals play important roles in managing, protecting and developing your income and wealth, but which one is right for you? It all comes down to your personal finance goals and situation.
Most importantly, given that money without a doubt makes the world go around, it is vital that you have confidence and trust in both your accountant and financial planner.
What is the Difference between an Accountant and a Financial Planner?
To put it simply, accountants report on and analyse financial transactions, do financial forecasting and auditing and put together financial statements, whereas, financial planners assist people with retirement planning and wealth management.
Continue reading to find out more information on these services to help answer the question; do you need an accountant or financial planner?
What does an Accountant do?
Most people associate accountants with tax, and this is true; accountants play an integral role in ensuring legal tax adherence and minimisation. However, they can also advise you on your business and investments.
Furthermore, accountants often work with other professionals such as lawyers and financial advisers to provide the best possible financial services for businesses and individuals.
The main areas of accounting are:
The tax services that an accountant provides ensures the preparation of the required and relevant tax forms and any other tax requirements of an individual or company are properly managed and processed. As previously noted, an accountant may also provide business and other financial advice to facilitate future financial growth and health.
Accountants also assist in providing assistance in asset protection, estate planning, rental properties, business structuring, estate planning and business start-up services, as well as providing management and advice on fringe benefits tax and capital gains tax.
Bookkeeping involves maintaining company financial records, which includes, but isn’t limited to, payroll, accounts payable, accounts receivable and balance sheets.
Auditing is an important and informative security measure to ensure there’s no overspending or illegal and unjustified company money handling occurring within your business.
What does a Financial Planner do?
A financial planner has more of a guiding and advisory role for individuals and businesses, rather than the management role that an accountant provides.
Helping you understand the most beneficial financial investment options for yourself and/or your business is a financial planner’s priority and where their expertise lies. Their primary role is to recommend when and where to invest your money.
Examples of Financial Planning services include:
- Planning for retirement
- Wealth management and investments
- Business cash flow
- Superannuation and SMSF
- Key man and buy sell insurance
- Corporate superannuation for employees
- Life and income protection insurance
So, do you need an Accountant or a Financial Planner?
For most people, the answer is probably both.
- Accountants provide valuable services for individuals, families and businesses. Being the experts, they are best able to legally minimise your tax liabilities and provide advice thereon. With their grasp of your finances, accountants provide valuable input into many money matters and they work with other professionals such as lawyers and financial planners to provide the most accurate information, including of potential risks and growth opportunities.
- This invaluable range of money management services provided by an accountant is best utilised in conjunction with the services of a financial planner to determine how best to invest your money. Financial planners’ expertise is also highly important regarding areas such as insurance, wealth management, retirement planning and superannuation.
- As individuals, families or business owners, if you are serious about planning for a safe and secure financial future, then you likely require the services of both an accountant and a financial planner.
Crest Accountants and Crest Wealth
Our Crest Corporate Centre provides a convenient, central location on the Gold Coast – designed to house all our services under one roof. The accounting division Crest Accountants and the financial planning division Crest Wealth will provide you with both the accounting and financial planning services specific to your needs.
With Crest, you don’t need to wonder who to turn to and trust in when it comes to personal or business money management requirements, we have you covered.
At Crest Accountants we provide tax returns, asset protection, estate planning and more for families, and business structuring, cashflow forecasting, capital gains tax and more for businesses.
At Crest Wealth we provide financial planning services that help clients to grow and protect their personal assets and wealth.
You can rest assured knowing all your money management and investment needs are in good hands.
Disclaimer: The information contained in this news post is general in nature and is intended to provide a general summary only and should not be relied on as a substitute for professional advice.