When it comes to advising the self-employed and business owners, there’s a fair amount of common ground between accountants and independent financial planners.

In simple terms, a financial planner focuses more on the long-term, creating a vision for a client’s future and a plan to get them there. An accountant, on the other hand, focuses more on the short-term, managing finances and ensuring taxes are paid on time.

This creates numerous opportunities for collaboration – even in the most straightforward of circumstances. An annual tax return, for example, might highlight spare money that could be better managed, or a tax rebate that could be used to top up pension savings.

Ultimately, it’s all about helping you make the most of your money. Although their roles differ, both are experts in identifying financial opportunities and the associated risks, and both can help you make the most of your tax allowances.

As a result, you can gain a great deal of value from establishing a working partnership between your accountant and your IFA.

Both are experts can help you make the most of your tax allowances

What are the main advantages?

The main benefit of a working relationship between your professional advisers is that you get a joined-up plan tailored to your best interests. On the flip side, the reverse could be true. Disjointed tax planning and financial advice can lead to confusion and missed opportunities.

Let’s take remuneration planning as an example. This process involves structuring a client’s income from all sources, not just earnings, with a view to mitigating tax and maximising ‘take-home’ pay.

It may be that paying into a pension might be the right advice – but the detail is crucial. This is particularly true for clients who opt for a dividend strategy. Accountants can add value by involving a financial planner, who can help the client find the right balance between generating income and investing for the long term.

This professional partnership can also help clients in making the best decisions regarding use of their wealth in retirement. A financial planner will often use cashflow modelling to evaluate the role of various assets held by the client, and how they will be realised in the future. Whether dealing with pension funds, investments, or business assets, they can ‘join the dots’ to determine which assets to use – and in what order. This process will inevitably include a range of tax planning considerations, which will benefit from the guidance of their accountant.

Working in partnership

The joint expertise of a financial planner and accountant creates a holistic approach and could prove more fruitful than if you were to keep the two parties separate.

If you already have an accountant, put them in touch with your financial adviser, or ask them whether they think the addition of an Independent Financial Adviser could benefit you. If you need an IFA, get in touch and we’ll connect you with an Amber River IFA in your area.

Get in touch

To speak to us about your financial planning, or to arrange an appointment, call 0800 915 0000, or alternatively use our contact form here.

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