Post-tax reform, tax professionals report that clients want not just compliance advice but guidance on how to adjust finances to maximize advantage of the tax code -- a new kind of well-rounded financial advice. Recent surveys also indicate that consumers want a greater concentration of tax and financial advice from one source.

CPAs are learning what’s involved in certifications and designations in financial planning. How can planners consider tax certifications?

“Comprehensive wealth management encompasses financial planning, tax planning, legacy planning and transfer planning. The Tax Code entwines itself through all of these activities,” said Michael Winslow, CPA/PFS with Pile Wealth Management, Indianapolis. “When we map out a cohesive plan for clients, the various parts fitting together and the potential tax savings of one plan versus another, they immediately see the wisdom of receiving services from one source.”

“A growing number of people would like to have their advice from the same source, but I still see a lot of people who prefer to use who they consider to be an expert in the fields,” said Ann Etter, a CPA/CFP with Goodney & Associates in Northfield, Minn. “I do think that as the next generations come up they’ll be looking for a more streamlined experience.”

Richard Kollauf, CPA/CFP at BMO Private Bank in Milwaukee (“one of those tax-CPA-types” who recently secured a CFP), doesn’t believe tax reform drives the one-stop shop sentiment. “Advisors have been driving this for years. We all seek to add to our credentials to appear more competent and holistic,” he said. “Tax is at the core of all planning … every transaction an individual or business makes has some tax component.”

A financial planner should first determine what they hope to gain with an additional designation. “If they’re mostly interested in being able to speak on the tax consequences of financial plans, then the enrolled agent designation is sufficient,” Etter said. “If a planner does a lot of work with closely-held businesses and wants a better understanding of the ins and outs of the financial statements and various tax issues related to the business entities, then a CPA designation.

“Many financial planners seem to think that attaining the CPA is too difficult, and it is very difficult for many people,” she added. “The EA exam is less onerous and often overlooked as a tax credential. It doesn’t have the same recognition as a CPA [and] some people mistakenly believe an EA works for the IRS, rather than just being credentialed by the IRS.”

William F. Murphy, CPA/PFS with Murphy Financial Group in Indianapolis, holds several designations. “These gave me an extra level of expertise and advantage in advising and attracting sophisticated clients,” he said. “I also found that these clients routinely requested assistance in understanding very complicated tax-planning models and didn’t hesitate to recommend us to their equally sophisticated business colleagues.”

He recommends a financial planner reach out to any network of local CPAs and get acquainted with local state requirements to acquire a CPA designation. “The CPA profession is suffering a huge loss of qualified experienced tax professionals,” he added. “The boomer owners are retiring or selling to younger staff in huge numbers. The loss of these experienced professionals will impact the need for more qualified tax advisors [and] I can foresee many smaller CPA firms reaching out to a financial planning professional to help fill the gap.”

Winslow said advisors should start research for tax credentials with such organizations as the American Institute of CPAs, as well as state CPA societies. “In recent years, these have opened membership to professionals who are not CPAs,” he added. “There are also a variety of non-CPA organizations that offer specialized tax training and credentials. I have a tax credit specialist designation which helps me understand pass-through tax credits related to investments in Section 42 housing partnerships [and] qualifies me to assist on the syndication side of these partnerships.”

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