How to Identify and Partner with CPAs: A Guide for Financial Advisors
Anthony Anderson, co-founder of Elite Resource Team, brings nearly a decade of experience in building successful partnerships between financial advisors and CPAs. After perfecting his approach over a five-year period in Southern California, he expanded his training company nationally and internationally, now serving clients in the UK and Canada.
The 90/10 Rule of CPA Partnerships
Important reality check: 90% of CPAs won't be good partners for financial advisors, and conversely, 90% of financial advisors aren't well-suited for CPA partnerships. Success lies in finding and connecting with the right 10% on both sides.
Three Key Criteria for Identifying the Right CPA
1. Client Base Alignment
- Look for CPAs serving clients you can bring value to
- At least 20% of their book should match your ideal client profile
- Focus on clients with complex needs and multiple moving pieces
- Consider small business owners, medium-sized businesses, or high-net-worth individuals
2. Trust Level with Clients
The ideal CPA partner should:
- Be the go-to professional for their clients
- Get called first for major life decisions (401k liquidation, new company formation, marriage, etc.)
- Have strong, established relationships with the majority of their clients
- Strive to be the most trusted advisor, even if not for 100% of clients
3. Forward-Thinking Mindset
The right CPA partner should:
- Recognize that the industry is changing
- Want to move beyond compliance work
- Be interested in value-based billing
- Show openness to business advisory services
- Understand the need to adapt their business model
What Doesn't Matter
Several factors that advisors often focus on are actually less important:
- Specific professional designation (CPA vs. EA vs. Accountant)
- Geographic location (with modern technology, virtual partnerships work well)
- Particular niche (as long as there's genuine passion and expertise)
The Advisor's Responsibility
Success in CPA partnerships is 50% finding the right partner and 50% being the right partner. Financial advisors must:
Establish a Unique Value Proposition (UVP)
- Avoid weak approaches like:
- Offering to share revenue
- Leading with company credentials
- Focusing on proprietary products
Instead, focus on value-driven messaging such as: "I work with CPAs and help them bring more proactive and holistic value to their best clients."
Understanding the A to B Journey
- Current Situation (Point A):
- Understand their client base
- Know their current business model
- Assess their satisfaction level
- Identify pain points
- Desired Situation (Point B):
- Where they want to be in 1-5 years
- Their ideal client structure
- Revenue goals
- Service model aspirations
- The Challenge:
- Identify the main obstacles between A and B
- Common challenges often center around time and bandwidth
- Focus on how you can help eliminate or mitigate these challenges
Making the Connection
The key question that determines partnership viability: Can you genuinely help them eliminate or mitigate their primary challenge in moving from Point A to Point B?
- If yes: You have the foundation for a strong partnership
- If no: Be honest and transparent about not being the right fit
Remember, it's better to acknowledge when a partnership isn't right than to waste both parties' time on an ill-fitted relationship.
Commitment to Excellence
For advisors serious about CPA partnerships:
- Focus on this strategy exclusively rather than juggling multiple approaches
- Invest time in understanding the CPA's world
- Develop genuine expertise in serving their needs
- Build a reputation as a valuable partner
- Continuously educate yourself about the challenges CPAs face
