Fostering Business Relationships

Fostering Business Relationships: Accounting and Business Students Listen Up

There is hardly anyone with investments that are at least 2 to 3 years or older that were not, in one way or another, affected by the recent financial upheavals in the last half decade. Whether it be long-term retirement savings or short-term investments, most investors who had accumulated worth-while assets over the course of the last half decade realized some form of financial instability. Though indicators suggest we are emerging from the recession, there are still many challenges that business men and women need to consider. Like finding new clients, developing new relationships, earning the trust of potential clients, etc.

Changes in tax law and plummeting real estate values make it a great time for unhappy investors to begin utilizing the expert knowledge of a CPA who has partnered with a licensed Financial Advisor (FA). Reason being, it makes sense that putting two financial heads together is better than one and should produce better results for just about any given investor(s). Especially if one is intimately familiar with investment strategies like FAs are, while the other knows tax code and law like the commoner knows how to read street signs. For today’s accounting and business students, it’s important to know how to develop relationships with professionals in similar fields. This helps prevent dry spells of client acquisition or income generation when you and your family might need it most. Knowing the rationale behind this and how to apply it prior to graduating will do you a world of good once you’re out in the real world.

A Diversity of Assets Requires a Diverse Asset-Management Strategy

Most investors typically have diversified assets to consider; from homes and other physical property, to mutual funds to stocks, to liquid cash, just to name a few. An FA can suggest and provide guidance on the most appropriate investments for any investors given goals while a resourceful CPA can suggest ways to group these investments together that can result in favorable or at least reduced taxation. Reducing taxes alone will make anyone happy. See where I’m headed with this? These two types of financial professionals can scratch one another’s backs. Mostly in the arena of earning a client’s business because together they can offer more stability and direction to their clients than either one individually. For those investors out there who are unhappy with their current investment profile or taxation, this makes perfect sense.

Even individuals or couples with modest investments can benefit from sitting down with this financial duo to discuss current gains or losses in addition to any applicable taxes they have paid in the past. Just a conversation with a taxation professional can uncover completely legal means of reducing taxes. Recent financial challenges for investors all over have made this necessary. For instance, a CPA whose partnered with an FA may assist a couple or an individual in the tough decision making process of how to draw from a savings plan intended for a child’s college education. Their collective knowledge can help or even negate applicable taxation that may apply if the withdrawal was not done per state requirements to avoid paying taxes. An FA alone may not know this about tax regulation like a CPA would which is again, a compounding benefit of investing with an FA who has partnered with a CPA. For young accounting students, this is a very worth-while heads up on who you can partner with once you have graduated with your accounting degree and have become a Certified Public Accountant. You will undoubtedly earn more business by partnering with someone such as an FA than you would on your own. Take this to heart and apply it as soon as possible. You will quickly notice the difference in your clientele base while others flail in attempt to find clients on their own with no partnership.

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