July 11, 2023 • By Paul Saganey
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When it comes to working with CPAs, you’re a little too Felix and they’re a little too Oscar. But how can you make it work for the benefit of your clients?
Collaboration can feel like a four-letter word, especially when it comes to partnering with a new center of influence. You want it to work; they want it to work. You both know that working together will benefit your clients. But despite sharing a common goal, often this relationship falls short.
Just as any good golfer surveys the course to avoid the traps and hazards, let’s examine some of the pitfalls and mistakes CPAs and advisors make when working together and discover some strategies for success.
Failure to communicate value
One of the biggest mistakes made by CPAs and advisors is not adequately communicating the unique value they each offer. Both parties possess distinct expertise and knowledge that, when combined, provide a comprehensive financial strategy for clients. But if CPAs and advisors fail to effectively communicate their respective skills and the benefits they offer, clients may not fully grasp the value of their collaboration.
From the very beginning of the relationship, sit together and list some of the key skills that you each possess. Set aside assumptions and humility, and work together to articulate the expertise and experience that each partner has so you can carefully communicate it to each other, your teams and the client. Through an open dialogue, a more holistic approach to financial planning will thrive.
Miscommunication
Another common mistake is the lack of communication regarding the most relevant aspects of a client’s financial situation. CPAs and advisors must engage in open and transparent conversations to ensure they have a comprehensive understanding of the client’s goals, aspirations, and financial challenges. Failure to communicate about the right things leads to a fragmented approach to financial planning. This creates missed opportunities and confusion. Regular meetings, collaboration on financial plans, and ongoing communication are vital to ensuring alignment and maximizing the benefits of the CPAs and advisors’ combined expertise.
Ineffective client communication
I’m sure you’re sensing a trend – proper communication is critical to build trust and understanding. With undulating markets, financial advisors have built their careers on proactive communication. As CPAs add new capabilities and work with new partners, work together and share this information with clients in an effective and efficient manner. Advisors can ease these transitions by acting as translators, breaking down technical jargon into simple terms, and helping clients grasp the implications of financial decisions. By empowering CPAs to effectively communicate with clients, advisors strengthen and enhance the overall relationship.
Failure to update
One of the biggest challenges of any relationship is not keeping one another abreast of changes. We get acclimated, comfortable and lazy. For a great relationship, stop assuming and start acting like the Weather Channel: constant updates. Timely and accurate communication is vital for CPAs and advisors to stay aligned and provide clients with the most up-to-date information. Changes in a client’s financial situation, tax laws or investment strategies can significantly impact a financial plan. Communicate any relevant updates to CPAs promptly, enabling them to adjust their approach and provide appropriate advice.
The best solution to all the above? You guessed it – proactive communication. Don’t wait until there is a fire to pick up the phone. Schedule regular check-ins, develop and leverage a shared client relationship management (CRM) platform and try collaborative project management tools, like Monday.com or Basecamp.com. The above will facilitate better communication and ensure everyone is aligned.
By addressing these mistakes head-on and prioritizing effective communication, CPAs and advisors can enhance their relationship and provide clients with valuable and cohesive financial advice.
Paul Saganey CFP®, president and founder, Integrated Partners, is the co-author of Optimizing the Financial Lives of Clients: Harness the Power of an Accounting Firm’s Elite Wealth Management Practice.