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    Accountant vs Financial Adviser: What’s the Difference and Who Do You Need?

    Stuart Maddocks

    Imagine your Income Tax deadline is looming, and you don’t know where to start. Who should you turn to – a Financial Adviser or an Accountant?

    There are many reasons why you might need to submit a Self-Assessment tax return, such as receiving income from rental properties, investments or dividends. Many people get support from professional services to save time, reduce errors and look for opportunities to make the most of their money. So, when you’re considering contacting an Accountant vs a Financial Adviser – who do you call?

    Do I need a Financial Adviser if I have an Accountant?

    Stuart Maddocks, Independent Financial Adviser, became part of Wren Sterling following the acquisition of Thompson Wright Financial Planning Ltd. With his strong connections to TW Chartered Accountants, Stuart frequently supports clients whose needs extend beyond traditional accountancy services. “Recently I had an Accountant come to me with a case involving a client looking to retire in the next 5 years and wants to build up their pension. Disconnected tax planning and financial advice can lead to missed opportunities. By working collaboratively, I can create a tailored plan to help the client achieve their goals, while the Accountant ensures their income is structured effectively. Together, we’re acting in the client’s best interests.”

    View Stuart's profile Learn about Thompson Wright acquisition

    Should I see a Financial Adviser or an Accountant?

    It is possible to complete your own Tax Returns and manage your own Financial Planning, but the process is time-consuming and there are complexities that are easy to miss. Working with a specialist can save you money, reduce stress and help you make informed decisions. But which professional do you need?

    Do I have a complex financial needs?

    When a person has complex financial needs, it’s more likely that they would benefit from the support of a Financial Adviser or Accountant:

    • Being a Higher Rate Taxpayer, as they may not be aware of Higher Rate Tax Relief.
    • Multiple Income streams, such as employment, rental income, and dividends from investments and shares.
    • Investing in VCTs or EIS, as Income Tax Relief is available for these products.
    • Major life events such as divorce, receiving an inheritance or selling a business or property.

    Don’t invest unless you’re prepared to lose all your money. These are high-risk investments and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more.

     

    Do I need an Accountant or a Financial Adviser?

    An Accountant can give you the facts. Financial Advice can help you decide what comes next. If you’re looking to manage your wealth, plan for retirement, or review your investment portfolio, you’ll need a Financial Adviser.

    Talk to a Wren Sterling Financial Adviser to find out how Financial Advice could help you.

    Get in touch

    Accountant vs Financial Adviser FAQs

    • Can a Financial Adviser and an Accountant work together?

      Can a Financial Adviser and an Accountant work together?

      Stuart mentions a recent case, “I often collaborate with Accountants, and sometimes we will meet together face to face; the Financial Adviser, Accountant and the Client. There’s a client at the moment who is looking for the most tax-efficient way to extract money from their business for their pension, and we’re able to use both skill sets. It’s quite time-sensitive – as the Tax Year end is coming up. So don’t wait until March before picking up the phone.

      “I don’t just work with Accountants. We also liaise with other professional services, like Solicitors for Wills, Trusts and Power of Attorney.”

    • Can an Accountant give Financial Advice?

      Can an Accountant give Financial Advice?

      Accountants may offer help with structuring your finances, or submitting your tax return, but they are not qualified to provide financial advice.

      What is Financial Advice?

      Financial advice is a tailored recommendation that can help you achieve your long-term goals. Your Financial Adviser will produce this plan utilising financial products which they consider the most suitable for you.

    • What is the typical cost of a Financial Adviser?

      What is the typical cost of a Financial Adviser?

      Wren Sterling’s charges for our services are dependent on your individual circumstances and the degree of work required. For more information, please visit our fees page.

    We recommend adding that this is for information only and does not constitute advice.

    The Financial Conduct Authority does not regulate tax advice.

    The value of your investments can go down as well as up, so you could get back less than you invested.

    A pension is a long-term investment not normally accessible until age 55 (57 from April 2028 unless the plan has a protected pension age). The value of your investments (and any income from them) can go down as well as up which would have an impact on the level of pension benefits available.

    VCTs and EIS are high risk investments and you are unlikely to be protected if something goes wrong. VCTs are high risk investments and there may be no market for the shares should you wish to dispose of them. You may lose your capital.

    Stuart Maddocks
    About the Author

    Stuart has a vast experience built since 1998 and is able to provide advice to clients on a wealth management plan that will suit their needs. His clients receive expert advice on matters including building and preserving capital, effective retirement planning and help in obtaining income and capital growth in a tax-efficient, flexible manner. His spare time is now taken up by taking his daughter to football and swimming lessons. On occasions where he does have any spare time, he enjoys playing football and running.

    View all of Stuart Maddocks's articles