CPA, CFP Not Trained for Business Needs


Typically thousands of certifications across virtually all industries are a purchased focused education, started by a person or two as a profit business.  Who wouldn’t want to buy a few letters after a name after some training and testing without going to a university?  Then you continue to pay a fee every couple years to renew it with continuing education-that is after a fee of course.   In a many instances, decades they become a 501(c ) “non-profit” because of regulatory pressure. However, many original private entrepreneurs are still financially benefitting by being on the boards of the organizations.

Accountants and Planners

CPA’s  and CFP’s  have their place in your advising, but it is not in giving advice for managing a business that encompasses profit margin expansion, systems to make people accountable, strategic tax planning, and a many other vital organs for successful management.


Certified Public Accountants (CPA) are really good at historical financial information you need on your return.   You give them the information and they put it on the return in just the right places.  But since Circular 230, they work for the IRS – that’s right – even though you pay them a fee, their first duty is to the IRS; they represent the IRS.  Again, even though you pay them a fee, they report any activity that is the least questionable about YOU, on a special form.  –Don’t believe me, see form 8275-R   Now, in the professional world, that in itself would be considered a conflict of interest. This time, that is okay, as long as you understand the conflict and do the protections needed.  We need CPA’s to make sure everything is historically accurate as portrayed on your return.                                                                                                                                                                                                                                                                                                               Keep your CPA… but with Periodic Checks

Unfortunately, there are other conflicts of interest that CPA’s have –one of them is the competitors that the CPA also does accounting for!   It is just smart business to have a Business Tax Strategist that actual holds a license for such things and who can’t be a conflict since we have certain protections in place for that. I have seen very shameful, sad things happen to good, hard working owners.

The Business Tax Strategist will typically not only significantly add to the benefits you would gain (without any possible conflict of interest) but it would give another set of eyes to make sure the return preparation is not going to the benefit another competitor or person ultimately. The Tax Strategists do not prepare taxes, but will give you further information to give to the accountant to use for his preparation of your return.    It is getting Big Boy (large company) tax planning for the small business.

Certified Financial Planners                                                                                                               

Certified Financial Planners (CFP) testing only touches on training in five areas –  insurance, investments, income tax, retirement and estate.  The CFP designation does not make you an expert in any one of these areas.   As you can see NONE of them have anything to do with the systems to grow a business.


Logically speaking, has your CPA or CFP ever owned a large company, or even a small business of 50 employees that he grew from one or two within a short period of time?  Did he, by himself (without quality management advisors), ever have a company grow from one mill to 20 mill within less than five years without the government helping with loans?    It’s not their forte – they are not trained to do that and it is certainly inappropriate to be giving advice to a small business owner about such matters.

Feel free to call with any comments  262-707-0946  Have a great day!