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Accountant vs. Financial Advisor: What Are Your Goals & Who Will Help You Get There?

Zoe Team

Feb 21, 2023

4 min read

A financial advisor reviewing a plan with two clients at a table

Key Takeaways

Financial advisors focus on long-term goals like investments and retirement planning.
Accountants specialize in tax preparation, bookkeeping, and short-term record-keeping.
Choose your professional based on whether you need investment guidance or help with tax compliance.

Frequently Asked Questions

What is the main difference between an accountant and a financial advisor?

Financial advisors prioritize investment strategy and long-term financial planning, whereas accountants focus on tax regulations, bookkeeping, and business record-keeping.

Which professional should I hire for tax planning?

An accountant or CPA is typically the best choice for tax planning and preparation, as they are trained in specific accounting principles and tax laws.

How can I ensure the professional I hire is qualified?

Look for recognized certifications: CFPs and CFAs for financial advisors, and CPAs for accountants, ensuring they have completed rigorous exams and experience.

What Are Your Goals & Who Will Help You Get There?

When it comes to managing your money, knowing who to turn to can be challenging. Depending on your situation, you may need the help of a financial advisor or an accountant. You’re on the right track! Hiring the right professional for your needs starts with knowing the difference between the two.

Dear Zoe Experts,

I’ve been looking for tax planning guidance and am deciding whether to hire a financial advisor or an accountant. Both seem to be similar and help in their unique ways. However, I have very specific investment goals and need to know what characteristics to look for. How do I know which one is the right fit for me?

—A Zoe Blog Reader

Dear Reader,

Both accountants and financial advisors have essential roles in helping you manage your finances—but there are some key differences between the two professions. Financial advisors focus primarily on investments, while accountants focus more on taxes and other record-keeping aspects of finances. Additionally, financial advisors focus on helping you achieve long-term goals like retirement planning. Meanwhile, accountants focus more on short-term tasks like filing taxes yearly or preparing reports for investors. Let’s review both of these in more depth:

Financial Advisor

A financial advisor helps you plan for your financial future by advising clients on investments, retirement planning, estate planning, insurance policies, tax strategies, and more. A financial advisor should understand your overall financial picture and provide advice based on your goals. They may also offer services such as setting up investment accounts or retirement plans that fit your unique needs.

When looking for a financial advisor, ensure they’re certified. Certifications should keep an eye out for are: Certified Financial Planners (CFP®) and Chartered Financial Analysts (CFA®).

Professionals who hold a CFP® are knowledgeable in all areas of financial planning, covering more than 100 topics, and qualify for the certification through tests and work experience.

Individuals with a CFA must complete three exams and have at least three years of work experience. CFAs also show accounting, economics, portfolio management, and security analysis knowledge. Additionally, CFAs typically work in portfolio management, research, consulting, risk analysis, and risk management.

Accountant

An accountant works with individuals or businesses to manage their finances. Accountants are typically Certified Public Accountants (CPAs), trained in accounting principles and regulations. They can provide tax preparation, bookkeeping services, business consulting, budgeting assistance, auditing services, payroll management, business valuation services, and more.

To acquire the CPA license, you need to meet specific requirements. Extensive education to become a CPA includes the CPA exam has four parts, and at least 150 hours of extensive education.

Which One Is Right For You?

The answer depends mainly on what kind of help you need when managing your finances. A financial advisor might be your better option if you’re looking for help with investments and long-term planning. However, an accountant may be better suited if you need help with taxes or other short-term record-keeping tasks.

How To Choose The Right Professional For Your Needs:

When choosing a professional, it’s crucial to research potential candidates before deciding who is best for your needs. Look into their qualifications and certifications and any reviews from previous clients about their experience working with them. Sitting down with each candidate during an initial consultation would be best. You should hire someone you trust fully and who transparently lets you know they will work hard to meet your unique needs.

Bottom Line

When it comes to managing your finances or running a business efficiently, it’s essential to have access to professionals who can provide sound advice, explicitly tailored toward achieving your goals. Whether that means hiring an accountant or working with a financial advisor will depend greatly upon what kind of help you need most at any given moment—so take some time researching different options before making any decisions.

If you’re curious where to start, you can fill out our form to find an advisor that fits your needs and helps you achieve your goals.

Let us know if you have any questions on financial topics, and we’ll be happy to help and support you.

What Are Your Goals & Who Will Help You Get There?

Dear Zoe Experts,

—A Zoe Blog Reader

Dear Reader,

Financial Advisor

When looking for a financial advisor, ensure they’re certified. Certifications should keep an eye out for are: Certified Financial Planners (CFP®) and Chartered Financial Analysts (CFA®).

Professionals who hold a CFP® are knowledgeable in all areas of financial planning, covering more than 100 topics, and qualify for the certification through tests and work experience.

Accountant

To acquire the CPA license, you need to meet specific requirements. Extensive education to become a CPA includes the CPA exam has four parts, and at least 150 hours of extensive education.

Which One Is Right For You?

How To Choose The Right Professional For Your Needs:

Bottom Line

If you’re curious where to start, you can fill out our form to find an advisor that fits your needs and helps you achieve your goals.

Let us know if you have any questions on financial topics, and we’ll be happy to help and support you.

Disclosures: Zoe Financial, Inc. ("Zoe Financial") is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. Zoe Financial provides investment advisory services and access to independent registered investment advisers through its platform. The information provided by Zoe Financial is for educational and informational purposes only and should not be construed as personalized investment advice or as an offer to buy or sell any security. All investments involve risk, including possible loss of principal. Past performance is not indicative of future results. Clients should consult with their own financial, tax, or legal professionals before making any investment decisions. The material presented by Zoe Financial is for informational purposes only and is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy, or investment product. Material presented has been gathered from sources believed to be reliable, however Adviser cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Past performance is no guarantee of future results. Zoe Financial does not provide legal or tax advice, and nothing contained in these materials should be taken as legal or tax advice. SEC Registration does not constitute an endorsement of Zoe Financial by the SEC nor does it indicate that Zoe Financial has attained a particular level of skill or ability. The sole purpose of this material is to inform, and it in no way is intended to be an offer or solicitation to purchase or sell any security, other investment or service, or to attract any funds or deposits. Investments mentioned may not be appropriate for all clients. Before making any investment, each investor should carefully consider the risks associated with the investment, as discussed in the applicable offering memorandum, and make a determination based upon their own particular circumstances, that the investment is consistent with their investment objectives and risk tolerance. Lower expenses do not guarantee better investment performance. Certain information contained herein may constitute forward-looking statements. Due to various risks and uncertainties, actual events, results or the performance of a fund may differ materially from those reflected or contemplated in such forward-looking statements.

Disclosure: This page is not investment advice and should not be relied on for such advice or as a substitute for consultation with professional accounting, tax, legal or financial advisors. The observations of industry trends should not be read as recommendations for stocks or sectors.

Investment advisory services are provided by Zoe Financial, Inc. (Zoe Financial), an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training. Learn more about Zoe Financial on the SEC’s Investment Adviser Public Disclosure website. Brokerage services are provided by Zoe Securities LLC and Apex Clearing Corporation, members of the Financial Industry Regulatory Authority Inc. (FINRA) and Securities Investor Protection Corporation (SIPC). Learn more about Zoe Securities and Apex on FINRA’s BrokerCheck website.

The information in the visuals above is for illustrative purposes only and does not represent an actual user's account, balance, or return. Zoe Financial does not provide tax or legal advice.

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