Tax Focused Firms

CPAs have started to recognize a business opportunity in expanding into wealth management as a part of their services. Wealth management has also embraced the collaboration with tax professionals, as they are often one of the best sources of client referrals. The marriage of these two trends has brough about a rise in Firms who focus on taxes as a part of their overall business model.

  • These Firms may take the form of traditional asset management businesses or fee-based planning, allowing Advisors a variety of options. Planners may build their own planning fee-based business as employees or independent contractors, or take a salary role as a planning specialist on a team.

  • Advisors may be compensated a percentage of asset or planning fee revenue, or a base salary to be a planning specialist. Accountants referring business to the Firm may also register as representatives and earn a percentage of revenue generated by wealth management services.

  • Ownership will vary, as Firms may be formed as Independent RIAs or align with a tax focused Independent RIA or Broker/Dealer.

  • Most tax focused Firms are independent in some capacity and operate under the branding of their local OSJ or the Independent RIA.

    • Seamless pipeline of client referrals for wealth management Advisors.

    • Unique value proposition to high income clients

    • Ability for tax professionals to earn income from referrals for wealth management services.

    • Relatively new business model with increasing competition.