When it comes to providing professional services to your clients, who you know can be just as important as what you know. Being able to refer your client to an attorney who can help answer a legal question, an accountant who can address a tax problem, or to a financial advisor who can provide knowledgeable guidance can help ensure that your client is getting the best service available. It can be hard work to build a professional network, but hard work will often pay off in the end.
Accountants, financial planners and lawyers should work together
The responsibilities of accountants, financial planners and lawyers often overlap. When these parties work together, the results can be harmonious. You can rest assured that you’re receiving thorough, well-researched advice concerning your tax, financial and legal affairs. However, if these parties aren’t communicating, you or your business could suffer. Overlooked tax implications or issues with your estate are just some of the problems that could arise. Communication between everyone who has a hand in your financial affairs is crucial.
CPAs and financial planners shouldn't offer legal advice
Oftentimes, tax and financial issues can intersect with legal issues. It can be tempting for accountants and financial planners to field legal questions in an effort to better meet the needs of their clients. However, doing so may cross the line into providing legal advice. Unless the person giving the advice is a licensed attorney, one may face charges of practicing law without a license or face other consequences.
Accountants: There are times to refer your client to an attorney
The duties and responsibilities of accountants and business law attorneys often overlap. Sometimes, the lines become so blurred that it’s difficult to see when professional legal help may be necessary. If there is ever any question concerning whether to involve legal counsel, accountants should always err on the side of caution.
