The ongoing economic downturn offers accountants the opportunity to extend their reach and help their clients at a time when they are most needed.

"Any accountant has insight into their clients' financial situation," said Jonathan Wittlin, CPA, CFP, vice president and portfolio manager for financial planning at Lenox Advisors. "The CPA who prepares returns is in front of clients at least once a year to review what's going on, gather documents, etc. If they're doing their job, they'll also be asking questions about any life changes that may be happening, and what the client expects from an income standpoint."

Wittlin sees financial planning as a natural outgrowth of tax preparation. "Knowing the client's tax situation is a huge help from a planning standpoint," he said. "It's a natural fit for the CPA to move into a [financial] planning role."

"You never know whether it will be good times or bad times," he observed. "The next problem or the next big boom could be just around the corner, so it's important to become familiar with the client's situation. If you know what their goals and problems are, you can advise them when the economy does things none of us expect."

Lenox takes a team approach to financial planning. "We don't have in-house CPAs," said Wittlin. "If a client comes in and says he's been working with Joe CPA for 15 years, that's who we'll use. We make him a part of the team. In the ideal situation, it seems as though we're all working for the same company. We stay in touch with each other and share information."

CPAs enjoy an advantageous relationship with their clients in comparison to other financial advisors, said Mark Merenda, the president of Naples, Fla.-based Smart Marketing. "Everyone who pays taxes has to come in once a year," he said. "Other financial advisors would love to have that advantage. Accountants are traditionally focused on cost savings, and in times like these, that's seen as a very positive quality in the eyes of most investors."

TOUGH YEAR FOR PLANNERS

"Financial advisors who aren't CPAs have taken a brutal beating in the last year-and-a-half," said Merenda. "Whether they charge on a fee or an asset basis, it's been a tough year. For example, if you get paid a 1 percent fee on a $2 million portfolio, that's $20,000. But if the assets lost 40 percent of their value over the past year-and-a-half, your income is down by that amount."

Moreover, a fair amount of clients want to blame their financial advisors for the recent tough times, he explained. "That creates an opportunity. People who are unhappy with their investments will be more willing to consider making a change in their advisors. Accountants are respected as being cautious and prudent with their clients' money, which is exactly what most investors want today."

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