Chartered Accountant

What Is the Difference between Chartered Accountants and Financial Planning?

Every business must have a business advisor and an accountant. Many people believe that financial planners and chartered accountants and Financial Planning

Every business must have a business advisor and an accountant. Many people believe that financial planners and chartered accountants are the same. This article aims to burst this myth so you can properly plan your finances, with the help of the right people.

You might be convinced that your chartered accountant will help you plan your taxes, as well as help you manage your future finances. However, while, CAs will help you manage taxes, predicting and managing future finances is a role that financial advisors play. Let us dig deeper to know better.

Who Is a Chartered Accountant?

Chartered accountants are people who record, analyze, summarise, and create reports of financial planning. They handle both internal as well as public accounts. Under internal accounts, they handle issues related to auditing, inventory accounting, and financial forecasting for private companies. On the other hand, public accountants handle audit financial statements and work for third-party firms. 

Tax planning and bookkeeping are crucial responsibilities of a chartered accountant. They will help you maintain legal accuracy by navigating your tax situations and addressing the challenges in your bookkeeping. Accountants are people utilized mostly for specific circumstances especially when you run your own business, have a high salary, own rental properties or have several investments that require a more detailed eye. 

Who Is a Financial Planner?

Financial planners are people who have a more comprehensive approach concerning financial planning. Wealth management is their key focus. They keep an eye on budgeting, investment and retirement planning. If you are in debt, a financial planner will advise you on how you can manage it, and ultimately pay it off as well.

Financial planners work in two ways: 

  1. As debt solvers
  2. As planners for long-term financial goals

Depending on your needs, financial planners can help you in both cases. Therefore it is imperative to hire a financial planner who specializes in handling complicated financial situations. If you already are good with money management, you may want help with investments. Financial planners can also help you with some simple saving strategies. 

Vakilsearch hosts a group of expert and experienced financial planners, who would help you plan for your financial goals, and also help you face and solve financial issues, if any. To hire the best financial planner for your business, click here!

Difference between Chartered Accountancy and Financial Planning

Chartered accountants are experts in tax planning and accounting, they are not experts on assets like debt and equity. Also, they are not experts who shall track or research factors that could be macro such as the European crisis or micro such as inflation which is a must for any investment decisions you take. A CA may have a view on these as a spectator but is in no way qualified to examine these facts to form any advice regarding investments.  

The job of a chartered accountant ceases after they calculate the tax amount you pay as an individual investor. However, to save the investment tax, you will need an investment advisor or your financial planner. A financial planner will guide you in your investment so you can invest in a suitable tax-saving instrument, taking care of your overall portfolio, asset allocation, and other needs. 

A chartered accountant has no role in financial planning. CAs are not equipped with the proper knowledge and experience to assist you in planning your financial goals or risk assessments. They do not have any role or expertise in helping you assess your future finances and portfolio. If a CA shows engagement in advising on investment, they do it just for the sake of not losing their clients, or for some monetary gains. You must know that such a piece of advice from a CA may not be comprehensive.

A financial planner should have detailed knowledge about the current status of the economy, and individual assets. If you do not have too complicated financial life, a financial planner can also help you deal with tax-related matters. 

Financial planners will be having a broad picture of your investments, as they would have been associated with you since the early stages of your investments.

Chartered accountants, in some cases, are like product sellers for your tax savings bonds or your insurance needs. However, the practice guidelines prohibit chartered accountants to act as commercial agents. 

A Chartered Accountant Is Not a Financial Planner

Sometimes, chartered accountants work with financial planners. You can hire both if you feel that you need extra support to manage your taxes and financial goals. You must take the service of a professional who shall suit your individual or business needs. For accounting, and audit-related issues you need a chartered accountant. While, for all your aspects related to financial planning, you should opt for a financial planner. 

To face a challenging financial situation, or for managing, or plan your long-term finances, connect to Vakilsearch. Vakilsearch hosts a group of expert chartered accountants and also experienced financial planners who will ensure you the best for your individual, as well as business needs.

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