[Annie]

Okay my husband and I have been in a debate lately. Google is all over so no help there.
Is a CPA different than a tax planner?

Were essentially trying to figure out who were supposed to be hiring. Our CPA isn’t very helpful or knowledgeable not sure which it is.

We’ve been with him for a few years. However whenever I’ve inquired about some alternative ideas – he’s basically only suggested IRAs.

Which we have and know plenty. But he doesn’t have any other feedback it seems, it’s to the point we don’t even ask him for anything he just files for us.

[Ben]

Not all CPAs are tax planners. Not all tax planners are CPAs. Most CPAs will just take all your info and file the returns.

If you want planning advice, those CPAs exist, but are usually much more expensive.

It sounds like you should look around for a new CPA or use a CFP in conjunction with your CPA to do tax planning.

[Tikvah]

So, a CPA can assist with tax planning but not all do (nor have the experience to give good info). A CFP or someone trained as a financial planner (I’d suggest an advice only as you’d be paying for their advice not management of your assets) would be better in line.

Also, I own an accounting firm. Tax prep services are different from tax planning services and generally aren’t combined.

We offer both but billed/discussed generally separate as one is a proactive service (tax planning) and one is a reactive service (tax prep)

[Valerie]

A CPA is a license, Certified Public Accountant. Some specialize in tax, but many are CFOs for business.

[Alex]

Not all CPA’s are tax planners, some don’t even work in tax. That being said, sometimes there’s a simple path to wealth that can work well.

It can also depend on your personal situation.

And the type of tax planning that you are looking for.

[Eric]

Tax planning is a service offered by some CPAs who do taxes, but certainly not all. Whoever you use, understand what qualifications they have.

Anyone can call themselves a tax expert, tax planner, tax strategist, and/or prepare and file taxes with literally no credentials of any kind.

There’s ironically a lack of regulations when it comes to tax services, as opposed to services that typically do require a license, like law, medicine, hair cutting, handyman, etc. (depending on the state).

I would also be careful with anyone offering tax planning services and not preparing returns – giving the advice without being tied to the results.

Not necessarily bad, just be cautious. Full disclosure – I am a CPA and do tax planning.

[Author]

Posts