Ways to network better with CPAs

A study found that after firms' current clients, accountants provide the most referrals, contributing almost 11 percent of a firm's new prospects.

With April 15 rapidly approaching and tax commercials seemingly everywhere, let’s take a moment to reflect on the important role that CPAs play in our clients’ lives. No one wants to pay more in taxes than they need to. While tax professionals help people report their income, earnings, gains, and losses in a legally prescribed manner, they also help clients avoid paying unnecessary taxes. Accountants and CPAs deserve our respect; the Tax Code is roughly 6,871 pages, but if you add tax regulations and guidelines from the IRS, that bedtime reading swells to 75,000 pages. That’s a lot to stay on top of and get right, which most tax professionals do.

Apart from the role they play in keeping the economy moving via our tax dollars at work, CPAs and accountants also make valuable centers of influence for financial advisors. Who knows if a client has the assets required to work with you better than a CPA? A CEG Insights study from 2023 found that after current clients, accountants provide the most referrals, contributing almost 11 percent of a firm’s new prospects.

It’s no wonder financial advisors want to work more closely with tax professionals. So, here are a few things you can do to network better with CPAs.

Be considerate. It’s easy to ask clients who they use for accounting services, but you probably already have their accountant’s name in your paperwork. For clients who haven’t filed taxes yet, call and ask the CPA if they have everything needed from your office to complete their tax documents. When you offer to make someone else’s job easier, you immediately stand out from the crowd. The goal is to introduce yourself so you can follow up after tax season ends.

Fill a need. Most CPAs need to obtain at least 80 hours of continuing education every two years. With their heavy workloads, it can be challenging to take the necessary courses. Your firm might offer classes for continuing professional education credit that you could extend to CPAs, or perhaps you know a mutual fund or insurance industry vendor who can provide a course for CPE credit. If you offer to host a lunch-and-learn at a CPA firm, you’ll probably find many willing participants.

Approach from a position of strength. When you get the chance to sit down with a CPA, think of business-related questions that will allow you to discuss tax strategies knowledgeably. Ask whether a business owner has any tax-loss carryforwards, and discuss how you’ve helped other business owners take advantage of that opportunity to convert tax-deferred retirement accounts into tax-free Roth accounts. You’re both doing your best to help clients save money on taxes, and a conversation like this puts you on the same side of the table.

Take them through your process. Too many financial advisors assume CPAs and accountants know about their financial planning processes. So remember to take time to review your process and how you help clients. Better yet, show them a sample plan so they can see the depth and breadth of resources, along with the expertise it took to create it.

Treat CPAs like high-net-worth clients. In other words, learn who they are and what’s important to them. Just as you wouldn’t rush a HNW client to ask for their business, extend the same courtesy to CPAs. Ask questions about their family, hobbies, charitable efforts, and passions, and spend time getting to know them.

Celebrate with them. Tax season can seem long and painful to regular folks, so imagine how arduous it must seem for CPAs and accountants who are working crazy hours. Send a note of congratulations after April 15 and offer to take the CPA out for a drink, coffee, or lunch. If they take you up on the offer, celebrate their accomplishments—and don’t talk shop. That get-together is all about them, not you. Your goal is to build the relationship; there will be other opportunities to discuss business.

CPAs can be powerful COIs for financial advisors. Although earning trust and gaining coveted referrals can be tough, the potential rewards outweigh the time spent developing the relationship. Set a goal to develop better relationships with CPAs (after tax season ends, of course) and you might find a new source of high-quality referrals.

Kristine McManus serves as chief advisor growth officer at Commonwealth Financial Network.