Accountant VS Financial planner
Sorting out your finances can be complicated. Sorting out bills, expenses and complicated tax laws is stressful. Luckily there are people out there that can make this overwhelming situation easier.
Accountants and financial planners can help you navigate through a financial minefield. While these services may seem quite similar, there are significant differences between the two.
Trying to navigate the taxation laws can be daunting, but the team of experienced accountants at Pisani Group are here to make tax time as stress-free as possible. Not only do we offer business accounting services and bookkeeping, but we also support clients with a self-managed super fund (SMSF), planning, strategy, business consulting and tax. Take the hectic out of your life, and have peace of mind knowing that your financial future is taken care of by us.
Accountant VS Financial planner – what’s the difference? And which service should you choose? We’ve come up with a few pointers so that you can make the right decision.
What does an accountant vs financial planner do?
Accountants can cover a wide range of services. Often these services can be completed by a single accountant. However, some larger firms may have separate teams for each. Some of these include:
Bookkeeping
This involves the recording and organising of business transactions and usually focuses on the day to day dealings involved in running the business – such as:
- Any earned revenue or expenses
- Taxes
- Acquired interest
- Payroll
Bookkeeping is an essential aspect of accounting as it keeps the records as accurate as possible.
Tax preparation
This refers to the writing and filing of tax returns, either for an individual or corporation. Your accountant will use the information from your bookkeeping records to lodge an accurate tax return.
Auditing
This is an objective evaluation of financial statements which is used as a safety net to prevent any issues in the future – including when it comes to lodging tax returns.
What does a financial advisor do?
A financial advisor guides you towards your business goals by helping you understand the best investment options for you.
The advice that they provide depends on what your business or financial goals may be. Based on those goals, the financial advisor will decide the best way for your business to achieve them.
Conversely, a financial planner can also advise struggling companies on which option to take to get their business back on track.
Essentially, the goal of a financial advisor is to use the information that they have available to create an investment plan for your business.
Can accountant vs financial planner give advice?
Accountants can offer some financial advice based on the current state of your finances. However, they cannot provide any advice regarding investments. they are only able to make you aware of areas of potential concern, as well as any areas where you may be able to place more focus in the future.
When do you need an accountant vs financial planner?
While it is possible for a business to do its own finances, a professional third party accountant will have a more transparent, objective view of your financial situation.
Using an accountant as soon as possible can make things much more manageable, offering security and significantly reducing the risk of issues down the line.
At Pisani Group, we offer small business bookkeeping that provides a holistic approach. We use the latest and best software systems to manage every element of your small business bookkeeping needs, including:
- Payment of staff
- Taxes
- Superannuation
- Expenses
- Monitoring your cash flow
This allows us to provide complete, end-to-end accounting solutions for your small to medium enterprise.
When is the best time to get a financial planner?
While an accountant vs financial planner can help with the general day to day operation of a business, a financial planner will help you achieve a specific goal.
In a nutshell, an accountant and a financial planner’s services couldn’t be more different. Accountants record, assess and prepare clients to get the most out of their business or tax returns. At the same time, financial advisors advise the best way to invest your money in the future.
