When in need of financial advice, you might be wondering whether a financial planner or accountant can help you. At some point in your finances, it makes sense to ask professional help to figure out how you should file your taxes or invest in the best possible way. You may also need help planning your budget or creating a system to help manage your finances.
When you should hire an accountant
An accountant can help you with different issues that others can’t. If you run a business or are extremely wealthy, an accountant will help you understand laws on taxes and bookkeeping. They can also help you if you have properties, so you can predict flow of cash or identify opportunities for you to stay ahead. Most people get an accountant for assistance on taxes. Although there is intuitive software to do this, a tax specialist is still the best person to help.
Aside from tax preparation, accountants can also assist you with financial statements, depreciation, expenses breakdown, tax laws, business structure, business growth and audit representation. They may be task-oriented and charge you an hourly rate. Their knowledge can be broad and deep, but be specific about how you want them to be of help to you.
When to hire a financial planner
On the other hand, financial planning is more targeted at investments. Accountants are commonly hired for handling taxes, while financial planners are known to be experts in investing money. Financial planners focus on the bigger picture; they are holistic and goal-oriented. However, they can work in two ways. One is to help you plan your budget and the other is to sell financial products that can grow your money.
Financial planners are skilled in finding an effective investment scheme for you considering your personal life goals. They know the right opportunities you might not know anything about. They can help you in things such as business succession planning, maximising succession opportunities and how your family dynamics affect your business in case of unforeseen circumstance. From short to medium and long term investing, they are the best person to ask. They are also the right person to answer questions on asset allocation, estate planning and wealth protection.
If you have a business, you might need both a financial planner and accountant to help you reach your objectives. Some accountants can be good financial planners, too. Whichever you choose, trust is important for you to work successfully. You should be comfortable working with them and ensure you understand every issue with your finances. If you run a small business, reputable accountants in Central London can be a real asset for you to save on taxes and unnecessary expenses. For long-term strategies, you might need the expertise of a financial planner on investment and budgeting.