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FINANCIAL PLANNER, ACCOUNTANT AND THE DIFFERENCE BETWEEN THEM

By Opulent Accountants|Tuesday Jan 16, 2018

It is very common for business owners to go out in search of either an accountant or a financial planner and expect them to be capable of effectively carrying out the job of both professions. While there may be those who are professionally Certified Accountants in Melbourne who train themselves to be vast in financial planning as well, both professions are different and require different trainings. Here, we will take a look at both professions in terms of the buzz words that explain their jobs.

THE ACCOUNTANT

The keyword that should come to your mind here is ‘Tax’ as these guys are experts in the field. It looks pretty straightforward to the ordinary eyes but there is more to taxes than meets the eye. Taxes and tax laws in themselves create a very broad spectrum which will require a great deal of dedication, knowledge, and training to become familiar with them all.

Most small business owners with good mathematical skills and good accounting software usually see hiring an accountant as an unnecessary expenditure but they are wrong. Your accountant can, in addition to what you and the software can do, provide you with a bigger and clearer picture of your accounts.

A good accountant can help you with updated changes in the tax laws and help you find any opportunities that the changes bring. They can also help you with advice on how you can properly depreciate all of your assets in the most productive ways possible.

Another thing worth mentioning is that business accountants generally charge by the hour which makes them very specific in the tasks they do or service they render. They, however, possess deep pockets of knowledge in their field.

THE FINANCIAL PLANNER

The keyword here should be ‘Investment’. These guys can also help you see the big picture in a slightly different perspective than the accountants. They help you find ways to grow your wealth in a manner that is unique to your lifestyle and personal goals. Like accountants, they are experts in the business of wealth accumulation and can help you find opportunities that you would ordinarily miss even if you are financially savvy and are an avid observer.

This is not to say that their functions are limited to wealth building. Like accountants, they can be vast as well. Other areas where they will be useful include budgeting, wealth accumulation, and protection, asset allocation, estate planning, etc. unlike accountants, financial planners generally charge in three ways.

They may charge by commission where they earn a percentage on money you invest or insurance policies you purchase, their pay may also be fee-based where they give you a flat rate or they may require a certain percentage of the assets you invest with them which is referred to as asset-based charge. Though it is not fair to judge all commission-based financial planners in a general manner, it is very common for their main interest to lie in the commission they expect from sales, therefore, their interest will not align directly with yours.

When you want to hire either of both professionals, it is important to be sure that they possess the right qualifications and that they charge at affordable rates in a manner that you are comfortable with. You are sure to get the best of both at Opulent Accountants. In addition to accountants, we also have highly qualified Tax Agents in Melbourne who will pride themselves in making your interests their priority.

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