Successful people live complicated financial lives.  Often, they must employ multiple professionals on their financial team. Too often, however, they don’t realize the importance of coordinating the advice they receive from their CPA and financial planner. Because of this, these financial professionals often fail to work together, which can lead to unfortunate tax ramifications.

Receiving coordinated advice from your financial advisor and accountant can ultimately lead to greater wealth for you. The teamwork can streamline your financial planning and maximize tax efficiencies. It is particularly important for those with greater wealth and more complicated financial pictures. If your financial team is not currently working together, it’s time to get them in the same room.

Why Communication Is Key

Your financial planner typically understands more of your situation and helps you achieve your financial goals. Your accountant deals with your tax planning and filing your returns. If your accountant isn’t aware of your entire financial situation, they cannot plan your taxes efficiently. A lack of communication means you might lose out on an important tax deduction. A collaboration between the two financial professionals also allows them to catch potential problems and take advantage of certain opportunities.

Many individuals need complex tax considerations integrated into their financial plans. Here are some circumstances that require teamwork between your tax advisor and financial advisor:

  • Timing charitable contributions
  • Comparing taxable and tax-free investments
  • Deciding between renting and owning real estate
  • Deciding when to harvest tax losses and when to take gains
  • Projecting estate taxes and figuring out how to reduce them
  • Knowing how to approach required minimum distributions

If your advisors aren’t currently coordinating advice, it is up to you to bring them together and foster communication. If your financial team is unwilling to work together, it might be time to replace a team member.

Contact Blue Oak CPA for help on building a team willing to strategize your entire financial plan together.