CPAs Most Trusted Advisors: Survey

“Theres a lot of insurance-related data not getting down to them,” he says. “There are tax strategies and benefit-related offerings small businesses are not aware of, theres a huge information-sharing need at that level.”

But the survey results are in direct contrast to the experience of Rick Patterson, a chartered financial consultant and National Association of Insurance and Financial Advisors Trustee. Almost 100% of his clients are small business owners. “If I met an advisor who is not in the (small business) market Id be shocked,” he says.

Patterson agrees CPAs are highly trusted by their clients, but they should be considered part of a team that includes a financial advisor, banker, trust officer and attorney.

In most cases, a small business owner would consider his CPA his most trusted advisor regarding impact of financial strategy on taxes, Patterson says.

“CPAs historically are not proactive,” he says. They generally do not advise small business owners on pension plans, profit sharing plans, or Section 125 Employee Benefit plans, he says. That would be the role of the financial advisor and the CPA would explain how those plans would impact the clients tax status.

Most financial advisors have a large client base of small business owners and entrepreneurs, Patterson says, who adds that CPA firms are among his clients.

Reproduced from National Underwriter Life & Health/Financial Services Edition, July 8, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.