CPA for financial planning career?

Question

I entered public accounting a few months ago with the intention of getting my CPA. My ultimate goal was to eventually move into personal financial planning. However, I am questioning now whether it makes sense to spend all this time studying for the CPA and gaining the experience when I really don't have to get the CPA to do the financial planning...any insight? Another side of me feels like it would be something to fall back on if I find I am not a successful sales person (as I know that i what a lot of financial planning is in the beginning) and the CPA would hopefully convince potential clients I am more credible. Any thoughts on whether it's beneficial if I don't know that I'll really use it?

Answer 1

First of all, congratulations on choosing the profession of public accounting. That said, why should you get your CPA? You answered this question yourself; it's all about credibility. Would you let someone perform surgery on you if you knew they didn't have M.D. (or similar) after there name? After their physical health, people are most squeamish about their money.



However, perhaps what is best for you is to look into to getting a CFP - certified financial planner. The CFP would be more appropriate for what you are wishing to do, however, lots of folks who get these started out with their CPAs. I posit that this is because it is much easier to build a client base with a CPA than with a CFP. CPAs enjoy the opportunity to practice in many more areas (e.g. taxation, audit, accounting systems development, transaction advisory, estate planning, et al), while the CFP is much more focused.



Long story short: You can't go wrong if you get CPA first, then afterwards get your CFP. The combination of both will only make you that much more marketable.

Answer 2

Well, the bad news is that they're both usually desk jobs. A CPA - Certified public accountant - prepares financial statements or tax returns for many clients, essentially assembling numbers to tell the story of their business or personal estate. A CFA - Certified Financial analyst - evaluates investment opportunities by examining the financial statements and other data. As I said, both are usually desk jobs - it would require some creativity on your part to get away from the desk. But on the plus side, both are art forms rather than merely technical number crunching - so you could certainly find or create a position that would stimulate your brain cells to work overtime!

Answer 3

The CPA designation will give you a more robust financial perspective and an air of stability. So much of financial planning from the consumers perspective is trust. People want to know that they can trust your judgment with their dreams of opening a pottery gallery and still live comfortably when they retire.



Additionally the designation will help you when sales are lean. With most financial planning you aren't day trading, you set up the account and do periodic checks. I say, get the added credentials.

Answer 4

The CPA designation is not required for financial planning; however, it will do 2 things:



1. improve your knowledge.

2. improve your credibility with clients.