Accountants Vs Financial Planners

When it comes to professionals who deal with money, you may think that an accountant and a financial planner do the same things. But when you actually look at what their jobs entail, you will quickly see that this is not the case.

Accountants

An accountant is typically someone who does the books for a business but they may do work for individuals as well. For many, this is someone that they deal with on a regular basis.

When it comes to a business, there are many tasks that they can help with. They can be an employee for the business and do the books which can range from paying the bills, collecting funds from others, calculating margins and running financial statements and filing the corporate income tax. They may also do payroll work for the company. If the company if looking to acquire or sell off assets, they can help determine if it is a worthwhile purchase or how much the item should be sold for

In regards to individuals, an accountant may help with figuring out how to get a person out of debt, how to file bankruptcy or how to file their income tax each year. If their situation is more complicated, they may need a special tax accountant who specialises in that particular area and has the knowledge needed.

Accountants do not actually need to work in that capacity either. Some go into forensic accounting where they review the books of companies looking for issues when a company is taken to court. They may work for the government and do audits for a variety of reasons.

Financial Planners

One of the biggest tasks that a financial planner handles is helping people with their personal finances. This may be helping them figure out how much money they are going to need for retirement and how they can achieve it or helping someone who is getting ready to retire to determine how to use their savings for maximum benefits.

Just like an accountant, there may be financial planners that have a specialty. They may specialise in helping those that are retiring in the next five years or those who have already retired and aren’t sure how to handle their funds. They may be excellent with helping families who want to save up for children’s educations or want to get into the stock market but aren’t sure where to start.