4Thought Financial Group Resources

How Can CPAs Mitigate Their Client's Risk? Ask “How Does This Tie In With the Rest of Your Finances?"

Written by 4Thought Financial | Mar 1, 2018 3:56:00 PM

Investment professionals and entities alike should always ask “How Does This Tie In With the Rest of Your Finances?”.  It is an important enough question that even from service providers such as attorneys and CPAs, often does not get asked enough to their clients.

The significance of this question is simple yet powerful.  This question not only serves to get a better idea of a client’s entire financial situation but to also recommend appropriate solutions and take appropriate actions.  Understanding a client’s life circumstances is a huge part of mitigating their risks, and make no mistake, CPAs have a part to play too.

Understanding a client’s circumstances helps to understand which tax liabilities or financial challenges they may face.  Recommending appropriate solutions that reflect the client’s reality not only builds trust, it helps build businesses too. 

A healthy and happy client experience leads to more information being shared, more referrals and more revenue.

Mitigating risk also applies to the CPA too.  Partnering with subject matter experts such as financial planners, attorneys and other service providers help to educate and build a more effective risk mitigation strategy.  Once client information is gathered, a more effective and powerful holistic financial plan can be instituted from the input.  Risk identifiers can be better noted and thus, more effective and appropriate steps can be taken to address them.

By asking the important questions about an investment, such as “How does this tie in with the rest of your finances”, CPAs can better ascertain and fulfill the needs of their clients.

Did you know....

4Thought helps service professionals provide solutions for their client’s investments? We open the door for more meaningful conversations about mitigating the risks your clients face.