Future Proofing Your CPA Practice: 8 Reasons to Partner with a Wealth Management Firm

Accountants rank among the most trustworthy professionals in business, but perhaps they are actually being underutilized. While clients trust certified public accountants (CPAs) to look after their tax needs, few are using them to help actively manage their wealth. Yet, the merits of working with CPAs can – and should – extend beyond traditional accounting. Today, the most forward-thinking CPA firms are actively considering adding wealth management services to their practice to support better outcomes for clients, to increase client retention, and to improve firm competitiveness, to name a few.

Looking to future-proof your CPA practice? Read on to learn about eight benefits of partnering with wealth management firms.

1. First, let’s talk about creating better outcomes for clients. Did you know that only 35% of Americans work with financial planners? It’s a startlingly low number, which means there is an opportunity for your CPA firm to significantly enhance your client relationships. Instead of being limited to periodic tax consultations or audit engagements, your CPA firm can provide ongoing financial guidance and holistic solutions. This expanded role allows CPAs to develop deeper connections with clients, gaining a comprehensive understanding of their financial goals and aspirations. By becoming trusted advisors for wealth management, CPA firms cement their position as valued partners in clients’ long-term financial success.
2. It’s also good to consider the benefits of client retention and loyalty. When a CPA firm provides an integrated approach to managing clients’ financial affairs, it creates a compelling value proposition. Clients no longer need to engage multiple professionals for tax, accounting, and investment advice; instead, they benefit from a streamlined experience with a single trusted provider. This consolidated service offering has real potential to cultivate loyalty and reduces the risk of clients seeking tax and wealth management services elsewhere.
3. Diversifying revenue streams is just smart business. Wealth management presents an opportunity for CPA firms to diversify their revenue streams beyond traditional accounting and tax services. The wealth management sector offers various revenue-generating avenues, such as investment advisory fees and financial planning charges. By expanding their services to include wealth management, CPA firms can tap into a profitable market and establish a more resilient and sustainable business model.
4. A good partnership will help you stand out from your competitors. There are nearly 100,000 accounting firms in the United States. In order to stay competitive, CPA firms must continually adapt to meet evolving client demands. Adding wealth management services to their repertoire empowers CPA firms to stay ahead of the curve and differentiate themselves from competitors. With an expanded service offering, the firm becomes more attractive to potential clients seeking comprehensive financial solutions. By capitalizing on their existing expertise and reputation, CPA firms can position themselves as all-in-one providers, effectively standing out in a crowded marketplace.
5. It can also help attract top talent. With quiet quitting and the war for talent, it’s critical for CPA firms to stand out as an employer. Especially with the careers in the field expected to increase over the next 10 years, firms need to think outside of the box to attract and retain top talent. Partnering with a wealth management firm is one way to differentiate your firm in the hiring process.
6. Discover new synergies and new opportunities. Integrating wealth management with accounting services creates synergies and cross-marketing opportunities for both parties. As CPAs collaborate with wealth management professionals, they gain access to valuable insights into clients’ financial situations, goals, and risk tolerances. This knowledge can be leveraged to provide more accurate tax planning, optimize investment strategies, and devise personalized financial plans. Similarly, CPAs can refer clients in need of wealth management services to their in-house specialists, generating additional revenue while delivering a seamless experience.
7. Open the door to enhanced professional development opportunities. It’s no secret that CPAs struggle with burnout. Wealth management brings a new dimension to a CPA firm’s professional development opportunities. By incorporating wealth management into their practice, CPAs have the chance to expand their knowledge base, acquire additional certifications, and develop expertise in investment strategies, estate planning, retirement planning, and more. This diversification not only enriches their skill set but also positions them as well-rounded professionals capable of handling complex financial scenarios. It can also create new career opportunities for your team.
8. At the end of the day, it’s all about future-proofing your firm. In a rapidly changing industry, CPA firms must adapt to new market trends and client expectations to future-proof their businesses. Adding wealth management allows CPA firms to broaden their services and cater to evolving client needs. As clients increasingly seek comprehensive financial solutions, firms that offer integrated wealth management services will be better equipped to withstand industry disruptions and economic fluctuations, ensuring their long-term viability.

Want to learn more about partnering with Merit Financial Advisors to offer fiduciary and objective wealth management strategies for your clients? Schedule a partnership consultation with one of our advisors today.

Securities offered through LPL Financial, member FINRA/SIPC. Investment advice offered through Merit Financial Group, LLC, an SEC registered investment adviser. Merit Financial Group, LLC and Merit Financial Advisors are separate entities from LPL Financial.