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9 Step Checklist for Financial Advisors to Partner with CPAs

Written by Elite Resource Team | Oct 16, 2024 9:46:18 PM

As a financial advisor, you understand the value of strategic partnerships, especially with CPAs. These partnerships can be a goldmine for high-quality referrals and expanded service offerings. However, many advisors struggle to establish and maintain these relationships effectively. This 9-step checklist, inspired by best practices from successful advisor-CPA partnerships, will guide you through the process of partnering with CPAs and maximizing CPA referrals.

1. Identify Your Ideal CPA Partners

The foundation of a successful partnership with CPAs lies in identifying the right potential partners. This step is crucial and deserves careful consideration. Not all CPAs will be a good fit for your practice, and partnering with the wrong CPA can lead to frustration and wasted resources.

When defining the characteristics of your ideal CPA partner, consider the following key factors:

  • Client Base: Look for CPAs who serve clients similar to your target market. This might include mass affluent individuals, high net worth clients, or business owners. The ideal overlap will allow for seamless collaboration and mutual benefit.
  • Business Philosophy: Seek CPAs whose approach to client service aligns with yours. Are they proactive or reactive? Do they value comprehensive financial planning or focus solely on tax preparation? A shared philosophy will make collaboration much smoother.
  • Interest in Collaboration: The most successful partnerships are with CPAs who are genuinely interested in working collaboratively. They should see the value in a team-based approach to serving clients.
  • Client Relationships: Ideal CPA partners have strong, trust-based relationships with their clients. Their clients respect their advice and view them as a trusted financial guide, not just a tax preparer.
  • Forward-Thinking Mindset: Look for CPAs who are open to evolving their practice. They should be interested in offering more proactive, value-added services to their clients.
    Professional Development: Look for CPAs who invest in their own professional growth. This often indicates a commitment to staying current with industry trends and providing the best service to clients.
  • Reputation and Credibility: Research the CPA's standing in the community. A strong professional reputation can enhance your credibility by association.

Based on these factors, create a detailed profile of your ideal CPA partner. This profile will serve as a guide in your search and help you quickly identify promising potential partners. Consider ranking these characteristics in order of importance to your practice to further refine your search criteria.

Remember, the goal is not just to find any CPA willing to partner, but to identify those with whom you can build a long-lasting, mutually beneficial relationship. This careful selection process at the outset can save you significant time and effort in the long run, and set the stage for a truly successful partnership.

2. Find Potential CPAs Who Match Your Ideal

Once you know what you're looking for, it's time to find potential CPA partners:

  • Use professional networks like LinkedIn
  • Attend local business events and conferences
  • Ask for introductions from mutual connections

As an action step, begin with creating a list of 10-15 CPAs who match your ideal partner profile.

3. Develop Your Value Proposition for the CPA

Before reaching out, you must clearly define what you bring to the partnership:

  • Outline your unique services and expertise
  • Identify how your services complement those of a CPA
  • Prepare case studies demonstrating successful client outcomes

As an advisor reaching out, you will need to create a concise "elevator pitch" that articulates your value to both the CPA and their clients.

4. Make the Initial Connection

First impressions matter. When reaching out to potential CPA partners:

  • Use a warm introduction if possible
  • Personalize your approach based on your research
  • Focus on building a relationship, not selling your services

Action step: Draft a personalized outreach message for each CPA on your list.

Also, joining a program like Elite Resource Team will give you multiple ideas on exactly how to reach out to CPAs, including exact templates!

5. Educate the CPA and Build Trust

CPAs need to trust your expertise before they'll refer clients. This is why you’ll need to focus on education, such as:

  • Sharing relevant articles or insights about financial planning
  • Offering to present at their office or a joint client event
  • Providing case studies showing how you've helped clients similar to theirs

Developing an educational presentation or writing an article specifically for CPAs and their clients would go a long way to accomplishing this step.

6. Establish Clear Expectations

For a partnership to thrive, both parties need to clearly understand the terms:

  • Discuss how you'll work together on shared clients
  • Agree on communication protocols
  • Establish a referral process
  • Consider discussing potential revenue sharing arrangements

While this is a difficult step for many, creating a partnership agreement template outlining roles, responsibilities, and expectations is essential! Also, be aware that much of the potential revenue sharing with a CPA is made possible only if you connect to a Virtual Family Office, which opens up to you a wide variety of services that you can’t fulfill on your own. The Elite Resource Team program connects advisors to a VFO and also outlines exactly how to create agreements, responsibilities, and expectations with any CPA you reach out to.

7. Implement a Collaborative Process

Develop a system for working together effectively:

  • Consider using technology platforms for secure information sharing
  • Schedule regular check-ins to discuss shared clients
  • Implement a process for joint client meetings

Action step: Without a system, collaboration will be difficult, so you must create a system for collaborative planning and client management that you each can follow. As a reminder, our program opens up to you—and any CPA you work with—a system to collaborate in that is already built, which includes a connection to a Virtual Family Office of over 75 specialists.

8. Provide Ongoing Value

Keep the partnership strong by consistently adding value:

  • Share relevant updates on your expertise
  • Offer to help them with complex client cases
  • Provide resources the CPA can share with their clients

One way to provide value is simply creating a content calendar to follow where you are reminded to share valuable insights with your CPA partners.

9. Monitor and Optimize

Regularly assess the effectiveness of your CPA partnerships:

  • Track referrals and conversion rates
  • Gather feedback from CPAs and shared clients
  • Continuously look for ways to improve the partnership

Implement a system for tracking key metrics and schedule quarterly reviews of your CPA partnerships. Like any successful partnership, regular communication and discussing things that can be improved upon are essential for success.

Leveraging Advanced Strategies and Resources

While this checklist provides a solid foundation, leveraging advanced strategies and resources can significantly accelerate your success in partnering with CPAs. Programs like Elite Resource Team offer tools and training specifically designed to help financial advisors build profitable partnerships with CPAs.

These advanced programs should provide:

  • Access to a network of CPAs open to partnerships
  • Training on effective communication and collaboration with CPAs
  • Technology platforms for seamless information sharing and client management
  • Ongoing support and best practices for maintaining successful partnerships
  • Strategies for implementing a "Team Based Model" that positions you and your CPA partner as part of a comprehensive financial services team
  • Connection to a Virtual Family Office

To that last point, any advisor-CPA relationship is supercharged with a connection to a Virtual Family Office. In fact, we would go as far as to say that an advisor-CPA relationship that doesn’t include a third-party VFO connection is incomplete. This is because a VFO greatly expands your potential service offerings to things such as:

  • Tax planning advice
  • Estate planning advice
  • Business succession planning
  • Wealth transfer advice
  • Trust services
  • Banking services
  • Loan & credit management
  • Real estate advice
  • Educational financing advice
  • Life insurance advice
  • Long-term care insurance advice
  • Non-liquid asset management
  • Health insurance advice
  • Property & casualty insurance advice

The goal is not just to trade your expertise with a CPA’s expertise, but rather to connect to a national network of specialists. By following this 9-step checklist and considering advanced partnership-building programs, you can build strong, mutually beneficial relationships with CPAs. These partnerships will not only increase your CPA referrals but also enhance your ability to provide comprehensive financial services to your clients.

Remember, successful partnerships with CPAs are built on trust, mutual benefit, and a commitment to serving clients' best interests. Start implementing this checklist today, and watch your practice grow through the power of strategic CPA partnerships.