By Kevin P. Nicholson

As a result of the COVID-19 pandemic and ensuing recession, millions of Americans are enduring financial hardship. My firm initially received dozens of calls from worried clients inquiring about their retirement savings, the Paycheck Protection Program, unemployment, life insurance policies, and so on. Often, the answers they were looking for overlapped with a field with whom financial advisers seldom join forces: CPAs.

Traditionally, people call upon their CPAs to manage their taxes and their financial advisers to manage their money. Unfortunately, rarely are they encouraged to bring these two minds together.

When they do, it can be mutually beneficial for all involved – the CPA, the financial adviser, and, most importantly, the client. Recently, I have personally begun to see much more collaboration. Just a few years ago, I might have met with a client and his or her CPA once or twice per month; the meetings have proven so fruitful, now I’ll get together with them via conference call once or twice per week.

To cite an example, an accountant I regularly work with recently reached out to me regarding a client of his who wanted to know how much life insurance he should have. I suggested that the three of us hop on a call to discuss the options together. When we did, I told the accountant’s client that, in a perfect world, I’d have a full view of his balance sheet to gain a clearer understanding of his finances before recommending a policy. The client completely understood my need for it and was excited by the proposition of us working in tandem to find the most suitable policy.

This referral not only strengthened the relationship I already had with the accountant, but also strengthened the client’s relationship with the accountant. Our meeting gave his client greater peace of mind knowing he had two advisers working in pursuit of his best interest.

This synergy between CPAs and financial advisers used to be taboo. Now, it has become natural for me to call a client’s CPA and say, “I’d appreciate if you joined this call with me so we can reach a shared outcome for our client.”

From collaborating to reach the best possible strategy to building a network of closely trusted colleagues you can rely upon in the future, there are considerable strategic reasons for why CPAs should partner with financial advisers.

The Best Strategy for Your Client

When I meet with a client for the first time, I always inquire about her other advisers, including CPAs and attorneys. This allows me to get a head start on pursuing the best strategies and counsel for that client.

Let’s say I’m helping a client formulate a retirement plan. I have a good grasp on the tax implications involved, but I’m not a CPA; therefore, I can’t provide the same expert-level insights on savings and strategies as a CPA with a practice in tax can.

When I reach out to the client’s CPA and ask for a three-way meeting, the collaboration takes a lot of pressure off the client. She may begin our meeting by saying, “I want to retire in 10 years. How can you two help me feasibly get there?” And we will begin to brainstorm and bounce ideas off each other until we reach a strategy that makes sense to the three of us, but, most importantly, one that works for the client.

When you collaborate, you’ll feel much more at ease knowing you reached the best possible outcome for your mutual client. Your client will, too.

Save Your Client Time

Time is a precious commodity. When experts gather together, it removes the need for a client to cross-examine each party’s recommendations, and thus cuts down on the overall time spent pivoting between advisers.

Your client will no longer waste time faltering to explain why his financial adviser recommended a specific strategy, and you won’t waste time trying to discern what it is he really means. Together, you and your client’s financial adviser can gain a well-rounded, multifaceted view of his financial situation in its entirety, allowing the three of you to more quickly reach a strategy.

An Arsenal of Connections

As I hold three-way meetings with clients more often, I’ve developed and built close-knit relationships with some of their CPAs. Now, when I run into a tricky tax question, I can access my vault of trusted CPAs and give one of them a quick call instead of searching for the answer elsewhere.

This means I no longer need to ask my client to phone his or her accountant for the answer to a question. Instead, I can call an accountant directly. Again, this saves time and money for our mutual client.

The team approach often leads to referrals for both parties. If I made a client and his CPA happy with a strategy I recommended, that CPA keeps me in mind when a future client has a specific question about his life insurance, 401(k), or financial plan.

With so much change and uncertainty, it has become more important than ever to encourage collaboration between advisers. In industries that are becoming increasingly commoditized, a partnership between accountants and financial advisers will continue to prove our value, while providing a treasure trove of strategies clients might otherwise miss.

Kevin P. Nicholson is cofounder of Walsh and Nicholson Financial Group in Wayne. He can be reached at knicholson@wnfg.com.

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