Difference Between an Accountant and a Financial Planner
Today, there is a professional available for every problem or for any type of help that you need. If you are looking for someone to manage your money, there are professionals like accountants, wealth managers, financial consultants, and financial Planners.
The greater number of options available can make it difficult to make a decision.
Among all the options for a financial professional, accountants and financial advisors are the most sought-after professionals. So, if you are looking for someone to manage your personal and business finances, you can choose between these two.
Individuals who work in the accounting and financial planning fields are generally bright, motivated, and good with numbers. If you are considering hiring either, you should understand they are quite different, even though both are based on numbers and math.
In this article, we will take a look at the differences between an accountant and a financial planner. Let’s get started!
Accountants record, summarize, analyse, and produce financial reports. They audit the financial statements of your business. The duties of internal accountants include auditing, inventory accounting, and financial forecasting. In other words, the job does not include sales except for promoting oneself and services to potential clients.
An accountant can help you with:
- Payroll Management
- Filing Tax
- Collecting Invoices
- Financial Forecasting
- Preparing Business Plans
You can also read: Red flags That indicate that You Need an Accountant for Your Business
Tax planning, portfolio management, and retirement planning are all aspects of wealth management that financial planners specialize in. Having strong sales and networking skills is a must-have for financial planners. Apart from this, it is also important for them to be adept with numbers and understand how the markets work. Their primary service is to invest the employer's money and profit from these investments.
A Financial Planner can help you with:
- Estate Planning
- Portfolio Construction
- Retirement Planning
- Philanthropic Strategies
You can also read: A Complete Guide on the Role of a Financial Manager in an Organization
Accountants mainly focus on recording the transactions happening in the business and systematically maintaining them. Most of the time, the accountant attempts to assist in determining the tax amount due as well as budgeting activities. Depending on the nature and size of the business, an accountant may be required to determine the current financial position of the business, as well as the amount of expenses incurred and income generated by various activities.
Financial planning is mainly a goal-oriented activity that has a holistic view with regard to the creation of wealth for an individual or a business entity. They are more futuristic and help the clients attain their future goals and reach a certain point of success in the future. They carry out investing activities and provide advice with regard to the management of finance. They assist the entities in identifying new gateways of achievement and adequately utilizing the available finances in the most effective manner possible.
Required Skillset & Working Hours
Key accountant skills include organized bookkeeping, timely payments and collections, detail orientation, and being adept with numbers. The work hours of accountants are generally the same as the work hours of the business they are working with.
Key skills for financial planners include communication and interpersonal skills, industry knowledge, risk management, wealth management, and so on. The working hours of the financial planner are generally up to them alone, but they have to occasionally meet the clients at odd times.
The best thing you can do for your business is to hire an accountant and a financial planner. Their strategies will enable you to thrive financially while reducing your risks. You can often get the names of good financial planners from accountants, and vice versa.
If you can only hire one, choosing one depends on your specific requirements.
Hire an accountant if you need someone to assist you with business management, daily transactional financial activities, or your taxes. Hire a financial planner if you're concerned about setting up your estate, working towards long-term wealth, or setting up your investment portfolio.
How can CDA assist you?
CDA, being one of the well-known accounting and auditing firm in Dubai and across UAE has been catering to the various needs of its clients related to accounting and auditing aspects for over a decade. CDA, with its professional team, is always on standby to render its robust services to the clients as per their requirements in the most effective manner possible. CDA, with its wide variety of services, can provide you with many opportunities to explore outstanding performance even in the competitive market. To discover more about our services, approach, us now.