By: 1st Global

 

Innovative CPA, tax and accounting firms are beginning to ride the waves of success. These firms fully utilize their capabilities to help clients with not only tax planning, but comprehensive wealth management, including wealth accumulation, wealth protection and distribution, and wealth transfer. The firm of the future will apply tax planning principles to the broader issues of wealth management to help clients achieve their financial goals. This ability will set them apart and give them the competitive advantage over traditional financial advisors. Is your firm ready for the future?

 

As CPA, tax and accounting firms evolve into complete wealth management providers, your firm needs to be one step ahead of the competition. There are several important strategies that your firm can implement to drive growth and profitability and allow you to become the wealth management firm of the future.

 

1. Identify Client Groups. Firms must realize they can't provide superior, comprehensive wealth management services to every client. Therefore, it is imperative to identify a premier client base by determining those most eligible for premium wealth management services. These clients must have: a minimum level of assets under management, a shared wealth management philosophy, a propensity to implement your firm's recommended solutions and a broad range of wealth management needs. Get ahead of the curve by identifying your ideal wealth management client and learning to say no to clients that don't fall within your guidelines.

2. Set Firm Expectations. Define an appropriate service model for your premier client base. How will your firm offer wealth management services? How many client contacts (phone calls, face-to-face meetings, etc.) will you make per year? What is the revenue expectation?

3. Proactive Marketing. Create awareness of your firm's wealth management brand and value to your clients by establishing an effective marketing campaign. Regular marketing mailers and postcards, a focused wealth management Web site, wealth-management-specific client workshops, client appreciation events and community visibility are all essential elements in effectively communicating your firm's wealth management brand and capabilities.

4. Networking. Adopt wealth management capabilities and benefit from a varying perspective. By networking with like-minded firms committed to wealth management success, the firm of the future can share business-building ideas and success stories, and benchmark your own results and goals to the results of your peer firms.

5. Leverage Expertise. Deliver customized wealth management solutions to top clients by leveraging resource partners for technical expertise in all areas of wealth management. With product innovation and regulatory change, it is prudent to partner with either a broker/dealer or technical firm (such as insurance or asset management) to deliver practical solutions to your clients.

6. Succession Planning. As the CPA and wealth management world continues to grow, succession planning is crucial. There are two potential broad paths to effective succession planning. The first approach is to design an internal solution by developing leadership among the junior ranks of the firm. If firms do not have a future generation, they should begin building a CPA and wealth management leadership bench. The second approach is to build the groundwork for an external solution. Oftentimes, firms will merge and consolidate with other like-minded firms as the result of networking with peers.

 

As your clients increasingly focus on issues such as retirement income planning, wealth protection and estate transfer, they need a firm that can consider the tax implications of every financial planning move. The successful wealth management firm of the future is built upon a foundation of tax planning. Don't miss the wave for future opportunity; start implementing these action steps today.

 

This article was originally published in the Accountants Media Group's 2008 Firm of the Future supplement.

 

About 1st Global
1st Global was founded in 1992 by CPAs who believe that accounting, tax and estate planning firms are uniquely qualified to provide comprehensive wealth management services to their clients.

1st Global provides CPA, tax and estate planning firms the education, technology, business-building framework and client solutions that make these firms leaders in their professions through dedicated professional client relationships built around wealth management.

More than 600 firms have chosen to affiliate with 1st Global, making us one of the largest financial services partners for the tax, accounting and legal professions.

1st Global Capital Corp. is a member of FINRA and SIPC and is headquartered at 8150 N. Central Expressway, Suite 500 in Dallas, Texas,(214) 265-1201. Additional information about 1st Global is available via the Internet at www.1stGlobal.com