As a business owner, one of the most important things you can do is surround yourself with the right people. People you can trust, who challenge you, who hold you accountable, and who genuinely care about you and share in your success.
And, when it comes to your money, this is even more critical.
Sometimes you choose your people, sometimes your people choose you, perhaps it is a referral or a family member. But the fact of the matter is, not all tax and financial professionals are created equal and it can be very easy to miss the signs that the relationship is failing. Here are a few things to look for.
If your CPA or advisor is taking their time getting back to you or only pops up during tax season or annual reviews, it might be a sign they're not giving your financial needs the attention they deserve. Tax planning is something that needs to happen year-round, not a race to file or catch up at tax time, which leads us to...
Your advisor should be invested in your business and your goals, and as such, they should be working to identify opportunities for tax savings, investment strategies, or financial growth. If they’re not suggesting new strategies or regularly updating your plan based on changing circumstances or market conditions, you have a transactional relationship, not a strategic one. By the way, responding to your questions or evaluating ideas that you have doesn't count. You can certainly bring those to the table, but this should always be a two-way street.
One of the biggest issues in financial planning is that most people aren't even aware exists. Templatized approaches, which are meant to be easy to implement and minimize risk are great for many firms. The work can be done by junior (lower cost) employees and deliver a return, but significant opportunities are almost certainly being missed. If your advisor isn't asking questions specific to your goals, lifestyle, or business needs, it's a sign they may not be fully engaged in your financial success.
Are you paying your advisor for time or based on the return they deliver? A reliable advisor will happily share details about their fees, the services they offer, and the reasons behind their financial advice. If you're having trouble getting straightforward answers or feel unsure about how fees are structured, it might be a sign that things aren't as clear as they should be.
As mentioned in #2, a lack of proactivity is a key sign that you're being underserviced. Similarly, if you find errors, and oversights and tend to be the primary driver of information and idea sharing in the relationship, it's probably not working in your best interest.
A good advisor supplies clients with knowledge, helping them understand financial concepts and the reasoning behind specific strategies. If your advisor dismisses your questions or avoids explaining strategies in an understandable way, it might indicate they’re not committed to your financial literacy. That's why at C&A we believe in empowering the informed taxpayer!
Keep an eye out if your advisor seems to favor products or services that benefit them financially, like commission-based options, without having an open chat about why they're right for you. Advisors should be upfront and honest, sharing any potential conflicts of interest.
Feeling comfortable with the level of risk in your investments or financial plans is super important. If you find that your advisor is nudging you towards high-risk options that make you uneasy, or if they're unable to clearly explain the risks/rewards involved, it might be a good idea to take a step back and rethink the relationship.
Here at C&A, we recognize these signs and our model is set up to deliver a different kind of experience for our clients, it's right there in our values:
We are easy to do business with.
We eliminate barriers and redundancies. Our processes and commitment to communication make it easy for our clients to work with us.
We are a results-based & fixed-fee firm.
We stand by our work. If we don’t perform, we don’t get paid. We hold ourselves accountable and drives us to exceed expectations.
We care.
We genuinely care about our clients. Your success is our success and we aim to prove it in every interaction you have with us.
If you have doubts about your people, it's worth a 15-minute call with us to see how we can help.