How can accounting be beneficial for financial advising?

Financial Advising Arlington

How can accounting be beneficial for financial advising?

By Smith & Smith & Ruiz CPA's

You will have to meet financial advisors, planners and accountants if you are running your own business or you are someone who works with money. Accountants and financial advisors have a crucial role to play in wealth management. In this blog, we will look closely into the difference between an accountant and a financial advisor and also whether an accountant gives financial advice or not. 

Accountants vs. financial advisors

Both careers are of greater reputation in finance, accounting and financial planning. Both of them differ in their job characteristics. One of the job positions is focused more on the financial behavior of individuals, whereas the other job profession is more about business finances. 


An accountant is usually required for businesses or individuals who want to manage their assets. One of the key job responsibilities of an accountant is to analyze, budget and consider taxes, revenues, liabilities and assets. An accountant will ensure all client financial documents are compliant with the existing laws. 

Job responsibilities of an accountant include:

  • Checking the accuracy of the financial documents.
  • Preparation of financial reports.
  • Filing tax returns.
  • Financial forecasting.
  • Evaluating financial operations that the client may be involved in.
  • Risk analysis.

An accountant should attain the required qualifications for becoming a chartered accountant. In the US, one must acquire a master’s degree and then complete a CPA, also known as Certified Public Accountant, to become a certified accountant.

Financial advisors

The job of a financial advisor will be to provide their clients with proper advice on how their money needs to be managed, taking into consideration their personal and financial life. They will also perform adequate research on the marketplace. Based on their findings, they will brief the client about any services and products that suit their requirements. 

Financial advisors can be classified into two types. They are;

  • Independent financial advisor
  • Restricted financial advisor

A restricted financial advisor can provide only limited advice. In contrast, an independent financial advisor can research all types of retail investments that suit their clients and cannot be restricted in their advice. 

Are you in need of a financial advisor or accountant?

It should be worth considering whether an accountant or a financial advisor is the right person from whom you can benefit from working. Depending on your circumstances and income, there could be scenarios where you may need a tax consultant near me and a financial planner. A tax planner near me will be enough to cover your requirements, especially if you are running a small business or about to begin a new business. Later on, if you plan to expand your new business, you might need financial advisors or financial planners. They can do the market research for you and give detailed information about all the options on the table. 

What does an accountant do?

Accounting is a hard job, and accountants use their knowledge and skills for tax planning. Furthermore, they also offer tax advice and consistently manage your business’s finances. Accountants ensure that the taxes are paid on time. They are responsible for preparing the company’s financial statements, auditing a client’s financial statement, etc. Furthermore, they resolve any accounting discrepancies. Profit and loss statements, monthly closing and cost accounting reports for the businesses are also prepared by an accountant.  

Can you have both an accountant and a financial advisor?

Businesses can structure their wealth management greatly by having a tax accountant near them and a financial planner. Hire a financial advisor if you are looking for help in retirement planning, investment products, large investments, stock markets, purchasing property and taking over new businesses etc. 

How accounting helps in financial advising?

Accountants ensure that the financial matters are always in order and constantly analyze the organization’s business performance. An accountant cannot offer investment advice or tell you where to spend the money. However, the accountant can brief you on expenditures and costs based on your current financial statements. They can use risk assessments to determine how much damage the decision may cause and may advise against it unless and until it is not an investment. They are quite helpful for businesses in the long run and can help tremendously with business strategies, invoices, debts, etc. 

The bottom line

The accountant and financial advisor could work in close coordination to ensure that they understand the requirements of the business and offer the right services and help. The financial advisor can research and brief you about the new trend happening in the market.