What Distinguishes An Accountant From A Financial Advisor?

Accountants and financial advisors both play essential roles in assisting individuals with their financial management. However, for so many individuals, deciding whether they require the services of a financial advisor or an accountant Sydney is a difficult task.

Externally, they seem to provide quite similar services, but there are significant legal distinctions between them. Understanding the differences between these two financial professionals might assist you in determining which one you require.

What is the role of an accountant in Sydney?

Many diverse responsibilities exist in accountancy, and several of them will indeed be handled by the work of numerous accountants through one accountancy service.

In addition, larger accounting firms may have multiple teams to manage each aspect of accounting, ensuring that your needs are entirely met.

These aspects of accounting mainly consist of:

• Bookkeeping: Handling a company’s financial information, such as payroll, accounts receivable, accounts payable, balance sheet, etc. This is something that any good accounting firm should have in place.
• Tax preparation: Making sure that all relevant and required tax returns, self-assessment, or any other tax-related work that you or your organisation must perform is handled and effectively managed.
• Auditing: Auditing may be a highly useful and effective security technique for ensuring that you are not squandering. Accounting experts ensure that all funds are being spend responsibly.

What is the role of a financial advisor?

Instead of assisting you in managing or organising your funds, a financial advisor is there to guide or advise you.

A financial advisor can assist you in determining the most optimal investment alternatives for you and your company. Suppose you have significant financial objectives in mind, such as paying for your children’s higher schooling or preparing for retirement. In that case, a financial advisor can guide you to decide on the best approach to managing your money.

Businesses frequently engage a financial advisor if they are concerned regarding cash flow and need help getting their finances back on the right track. Or if they are looking forward to expanding their business and need help putting up a strategy to do so.

Their primary responsibility is to advise you as to where, when, and how to invest your money.

Are accountants allowed to provide financial advice?

Before June 30, 2016, accountants were able to provide financial advice. The regulations have altered since the financial advice amendments were passed. In the current scenario, accountants who have got an Australian Financial Services (AFS) licence, can provide investment advice. Or if they are an approved representative of an AFS licence holder.

Accountants who do not have an AFS licence can, however, help with primary self-managed super fund administration chores such as fund setup and rollover documentation. As well they provide relevant information regarding investments and investing techniques. Disclaimers and waivers would not negate the need for a licence.

Do I require the services of a financial advisor or an accountant?

The type of financial professional you want is determined by your circumstances. Tax Agent in Liverpool seems to be a logical option if you need particular tax guidance, such as submitting a tax return.

A financial planner is the ideal option if working out how you can structure your assets to fulfil your future objectives.

In certain cases, engaging both an accountant as well as a financial advisor can be beneficial. Generally, business owners should consult with both. Engaging both financial professionals can bring out the best possible outcomes for business owners. Business owners, who would like to develop their business, save money on taxes, and invest cash down for retirement.

In addition, it’s possible to increase your wealth by coordinating the guidance given by both financial specialists.

Which is better, a financial advisor or an accountant?

It would be best if you look for an accounting firm that can help with your business finances. Qualita Business Accounting is one of them. Collaborating with a reputable big or small business accountant and financial advisor near you is critical to achieving your personal and corporate financial objectives.

Work with those finance specialists who are capable enough to comprehend your financial goals and explain financial topics in a way that you can understand so that you can participate actively in your financial planning.