Money advice: what to ask an accountant and financial planner

Financial advice comes in many forms, and it’s valuable to know what specialist can help you with the answers you seek.

Confusion about seeking money advice often starts with being unsure who you should be asking for help.

Friends, family and colleagues are a starting point for many, but for professional help it boils down to two professions – accountants and financial advisers, and both offer distinctly different services.

Accountant Mark Gellert, an associate director at dmca advisory, says people often get confused about what services they may need and who can provide them.

“You could ask an accountant for advice on what tax deductions are available, as well the best structure to ensure you are not paying more tax than you have to,” he says.

Accountants also help with audits, business forecasts and structures, risk management, compliance and reporting obligations, Gellert says.

Alison Stanbridge is both an accountant and a financial planner.

“When seeking superannuation advice, including whether a self-managed superannuation fund is right for you, there are regulations that need to be followed,” he says.

“An accountant may be able to advise of the tax implications of superannuation, but would need to hold an Australian financial services licence before advising where you should invest it.”

Gellert’s colleague Alison Stanbridge is both an accountant and financial planner, and says people can ask planners questions such as:

• What can I do to build my wealth?

• How do I invest my money?

• Which superannuation fund should I use?

• Will I have enough money in retirement?

• How can I protect my family financially if something happens to me?

“Accountants have technical and practical tax and business knowledge,” she says.

“Financial advisers often have technical and practical knowledge on wealth planning strategies, life insurance and products.

“Some areas of advice overlap, such as when recommending superannuation contributions. Accountants can provide the tax consequences of a given contribution and financial advisers can assist with where and how to make the contribution.

MBA Financial Strategists director Darren James is a financial adviser and says both professions have restrictions on what they can discuss, but they “work well together”.

“We can talk general tax but ultimately we have to say ‘you need to confirm with your accountant’,” James says.

“The thing people come to us for are what are the goals you are trying to achieve and how do you get there.”

James likens financial planners to GPs who take an overall view of people’s financial health and recommend them to speak with other specialists such as accountants and lawyers.