Who do I use and when? Accountants and Financial Advisors

11 December 2023, 10:26 pm

When it comes to advice, what is the difference between an accountant and a financial advisor?

In recent surveys of our clients, the team at Finwell Group have identified that there is sometimes confusion on the roles of accountants versus financial advisors.

We decided to write this article, to give you some background information on the best way you can use each of these professorial advisors.

In Australia, both accountants and financial advisors play crucial roles in managing individuals’ and businesses’ financial affairs. While there may be some overlap in their functions, each profession has distinct areas of expertise and specialisation. Understanding when to engage an accountant versus a financial advisor can significantly benefit your financial outcomes.

Here are some key considerations for using each professional:

When to Use a Financial Advisor like Finwell Group:

Investment Planning:

Financial advisors specialise in helping clients grow and manage their wealth. They assess your financial goals, risk tolerance, and time horizon to create a personalised investment strategy. Whether it’s retirement planning or building an investment portfolio, a financial advisor can provide expert guidance.

Retirement Planning:

Planning for retirement requires a comprehensive understanding of various financial instruments, superannuation strategies, and government policies. Financial advisors can help you navigate these complexities, ensuring that you are on track to meet your retirement goals.

Risk Management and Insurance:

Financial advisors can analyse your risk profile and recommend appropriate insurance coverage to protect against unexpected events. This includes life insurance, income protection, and other risk management strategies to safeguard your financial well-being.

Estate Planning:

Estate planning involves the thoughtful distribution of assets to heirs, minimising tax implications, and ensuring your wishes are carried out. Financial advisors work alongside estate planning professionals to create a comprehensive strategy that aligns with your goals.

Financial Education and Counselling:

Financial advisors go beyond specific transactions; they focus on educating clients about financial principles and helping them make informed decisions. Whether it’s budgeting, debt management, or understanding investment options, a financial advisor provides ongoing support.

When to Use an Accountant:

Tax Compliance and Planning:

Accountants are experts in tax matters, and they play a pivotal role in ensuring individuals and businesses comply with the ever-changing Australian tax laws. They can help you navigate complex tax regulations, minimise your tax liability, and provide advice on strategic tax planning.

Bookkeeping and Record Keeping:

Accountants excel in maintaining accurate financial records. Whether you are a small business owner or an individual, an accountant can organise and manage your financial transactions, ensuring that you have a clear and up-to-date picture of your financial health.

Financial Statements and Reporting:

Accountants prepare financial statements such as balance sheets, income statements, and cash flow statements. These documents provide valuable insights into your financial performance and are essential for making informed business decisions or securing financing.

Audits and Assurance:

For businesses requiring audits or assurance services, accountants are indispensable. They conduct thorough examinations of financial records, providing an unbiased assessment of the accuracy and reliability of the information presented.

Business Structure and Compliance:

When starting a business or considering a change in business structure, accountants can offer valuable advice on the most tax-efficient and compliant options. They can assist in setting up entities, such as companies or trusts, and ensure ongoing compliance with regulatory requirements.

In conclusion, accountants and financial advisors in Australia each bring unique skills and expertise to the table.

The best approach often involves collaboration between these professionals to ensure a holistic and well-rounded financial strategy tailored to your specific needs and goals.

We’ll work closely with your accountant to ensure you get the best outcomes for your plans.

If you would like to book an appointment to discuss your financial situation in more detail, please give our team a call on (03) 9017 3235 or email better@finwellgroup.com.au.