Market demand and the state of the economy are drawing more CPAs into financial planning

For those CPAs thinking about expanding their practice to include financial planning, experts in the area offer the same three words of inspiration uttered by sports fanatics everywhere: "Just do it."

Many CPAs are no longer reticent when it comes to the financial security of their clients. Instead, a number of them are exploring the avenue of financial planning, while those who already have a viable planning practice say the timing couldn't be better.

Most financial planners point to the economic downturn as an advantage to providing yet another valued service to their clients, many of whom have been overwhelmed by the current financial climate - especially since CPAs are already seen as their most trusted advisors.

"This is an ideal time to practice in this area or enhance your practice with this discipline," said Lyle Benson Jr., CPA, PFS, CFP and president of L.K. Benson & Co. PC in Baltimore. "Clearly, how people manage their personal finances and what decisions they make are key concerns. We see it across our client base, across all different types of individuals and throughout the entire wealth spectrum."

The need for expert financial help is further compounded by the issue that there will be fewer financial advisors renewing their license registrations this year.

That's a problem, considering that more assistance is needed to help the massive Baby Boomer population waiting to retire, according to Roger Ochs, president of broker/dealer H.D. Vest Financial Services in Irving, Texas.

According to Ochs, there is a projection of 35,000 fewer financial advisors renewing this year, because, with the larger wirehouses continuing to give incentives to top producers who work with high-net-worth individuals, those advisors who work with less-affluent clients are being pushed out of the business.

"There is going to be a real void," Ochs predicted. "There's going to be an opportunity that needs to be filled by somebody and the tax professional is uniquely qualified and positioned to provide that advice."

Ochs also pointed to the building pressure on the tax professional because more people are doing their taxes online - which decreases revenue for that practitioner, or firm.

"You've got these two phenomena going on," he said. "You've got the demand for this new service [financial planning], and you've got pressure on your tax practice because of a decline in revenue. It's a lot easier to offer an existing client another service than it is to find a new client to offer the same service. The economy is driving both of those."

SKILLS AND RELATIONSHIPS

CPAs are not only uniquely qualified, but also well-positioned for financial planning because of their existing training in tax, fin­ance and business, which give them a leg up on those without the training, according to Michael Goodman, CPA, CFP, PFS and president of Wealthstream Advisors in New York. Goodman said that there's an advantage to telling a client that you or your firm offers financial planning services, instead of sending them to a third party.

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