Working With a Financial Advisor Who Is Also A CPA Matters

Most investors focus on performance as measured by returns. That’s understandable. Returns are visible. They’re easy to track. They show up on statements.

What matters more is what you keep after taxes.

That distinction shapes how I approach financial planning and investment management. As a CPA who also serves as a financial advisor, I don’t treat taxes as a once-a-year event. I view them as a constant variable in every planning and investment decision.

This approach doesn’t rely on chasing higher returns or taking more risk. It depends on coordination and informed decisions around issues many investors underestimate.

Why after-tax results deserve more attention

Two portfolios with identical pre-tax returns can yield very different outcomes after taxes. Asset location. Withdrawal sequencing. Timing of gains. Roth strategies. Charitable planning. Each decision influences how much of your return ends up in your pocket.

Some investors work with an investment advisor and a separate CPA who coordinate closely. That can work when the coordination is real and ongoing.

Others prefer working with a single professional who sees both sides of the equation at the same time. That’s the model I use in my practice.

The benefit isn’t convenience alone. It’s integration.

What the research shows about tax-integrated planning

Academic research suggests that integrating tax expertise into investment decisions can add up to 1.0% in annualized after-tax returns. The percentage appears modest, but compounding magnifies its effect over time.

Consider an investor with $500,000 earning a 6% annual return. After 30 years, the portfolio would grow to approximately $2.87 million. With a 1.0% improvement from tax-efficient strategies, that figure rises to between $3.31 million and $3.81 million. That difference represents wealth preserved through planning rather than additional risk taken.

Research also shows that coordinated tax and investment decisions can lead to more consistent after-tax cash flows. That consistency matters for retirees and business owners who rely on their portfolios to fund ongoing spending.

Where tax expertise makes the biggest difference

Taxes affect far more than April filing deadlines. They influence nearly every major financial decision. In practice, the areas below tend to have the greatest impact for higher-income households and business owners.

• Tax-efficient withdrawals play a central role in retirement planning. Drawing from the right accounts in the right order affects both portfolio longevity and total taxes paid.
• Retirement account rules create both constraints and opportunities. Required minimum distributions, Roth conversions, contribution limits, and aggregation rules all interact in ways that benefit from advance planning.
• Backdoor and mega-backdoor Roth strategies allow some high earners to fund Roth accounts despite income limits. These strategies require careful execution to avoid unintended tax consequences.
• Estate and gift tax planning shapes how wealth transfers to the next generation. Income taxes, estate taxes, and trust structures interact rather than operate independently.
• Asset location and tax-loss harvesting reduce long-term tax drag without changing the underlying investment strategy.
• Business owners face added complexity. Retirement plan design, contribution strategies, and entity structure all affect taxes and cash flow.
• Equity compensation planning matters for executives and founders. Stock options, restricted stock, and incentive plans follow different tax rules depending on timing and structure.
• The net investment income tax adds another layer of cost for higher earners. Planning can influence exposure to this surtax.
• Qualified business income deductions depend on income levels, business type, and wage thresholds. Small changes can affect eligibility.
• Trusts offer planning opportunities, but each trust type carries distinct income and transfer tax consequences.
• Charitable strategies such as donor-advised funds, qualified charitable distributions, and charitable trusts allow philanthropy to align with tax planning goals.
• State and local tax considerations affect residency decisions, investment income, and deduction strategies, especially in high-tax states.
• Life transitions like divorce or the sale of a home introduce tax rules that can permanently affect net proceeds if handled poorly.
• Social Security taxation, Medicare premium surcharges, and alternative minimum tax exposure all depend on how income is managed across years.
• Even the type of investment income matters. Interest, dividends, and capital gains are not taxed the same way.

None of these decisions exists in isolation. They interact.

One advisor or a coordinated team

There are two effective ways to achieve meaningful tax-integrated planning.

One is working with a CPA who also serves as your financial advisor. This model brings tax and investment decisions under one roof, with no handoffs and no assumptions about what another professional is handling.

The other is working with an investment advisor who maintains active, ongoing coordination with your CPA. That requires more than occasional emails or year-end summaries. It requires shared planning, shared timelines, and shared accountability.

If you work with separate professionals, several practical questions are worth asking.

• Are tax-sensitive strategies discussed before they’re implemented?
• Do your advisor and CPA communicate during the year, not just after transactions occur?
• Can your advisor explain your marginal tax bracket, capital gains exposure, and Medicare surcharge risk?
• Have tax considerations ever led your advisor to recommend against a strategy that appeared attractive on the surface?

If coordination feels theoretical rather than operational, meaningful opportunities may be missed.

The principle that matters most

Taxes are a cost. Costs reduce returns.

Whether tax integration happens through one advisor or a coordinated team matters less than whether it happens. For many clients, working with a CPA who is also a financial advisor provides clarity, continuity, and a more complete view of their financial picture.

When tax planning and investment planning operate together, the focus shifts from headline returns to long-term after-tax outcomes. That’s where progress is made.