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When it comes to managing your finances, whether for personal or business purposes, you’ve likely encountered terms like financial consultant and CPA (Certified Public Accountant). Both professionals can help you make better financial decisions, but they serve different roles. The challenge is knowing when to hire each one and for what specific needs. In this blog, we’ll explore the differences between a financial consultant and a CPA, and how to determine which one is right for you.
A financial consultant, also known as a financial advisor or planner, is a professional who helps individuals and businesses make informed financial decisions. Financial consultants are experts in areas such as investment planning, retirement strategies, budgeting, debt management, and estate planning. They typically offer personalized advice to help you achieve your financial goals, whether it's growing your wealth, preparing for retirement, or managing your investments.
Some key roles of a financial consultant include:
Financial consultants typically charge either a flat fee, hourly rate, or a percentage of assets under management. They are not necessarily licensed to prepare tax returns or offer legal advice, but they can work with a CPA or other specialists to provide comprehensive financial guidance.
A Certified Public Accountant (CPA), on the other hand, is a professional who specializes in accounting, tax preparation, and financial reporting. CPAs are licensed by state boards and are highly regulated, ensuring they adhere to strict standards of ethics and expertise. The primary role of a CPA is to help individuals and businesses manage their tax obligations efficiently, but they also provide services in auditing, financial statement preparation, and business consulting.
CPAs are experts in areas such as:
While a financial consultant can offer general advice on how to manage your money, a CPA’s expertise is centered around taxes and accounting. Many individuals and businesses need both a financial consultant and a CPA working together to maximize financial outcomes.
A financial consultant is ideal when your focus is on long-term financial planning and wealth management. If you're looking to grow your investments, prepare for retirement, or create a solid financial strategy, a financial consultant can provide the expertise and strategies you need.
Here are some situations where a financial consultant can help:
If your primary concern is taxes—whether it’s for personal or business purposes—a CPA should be your go-to professional. CPAs are specifically trained in tax laws and can provide valuable advice on how to manage your finances in the most tax-efficient manner.
Here are some reasons to hire a CPA:
In many cases, working with both a financial consultant and a CPA is a smart strategy. While the financial consultant focuses on growing your wealth and planning for the future, a CPA can help you minimize tax liabilities and ensure compliance with tax regulations. The collaboration between the two can result in a comprehensive, tax-efficient financial strategy.
For example, your financial consultant might recommend a retirement strategy or investment plan, while your CPA can offer advice on the most tax-efficient way to implement that plan.
To decide whether you need a financial consultant or a CPA, think about your specific needs:
In many cases, both professionals work together to ensure your financial and tax strategies are aligned.
At Jones Advisory LLC, we understand the importance of making informed financial decisions. Whether you need a financial consultant to guide you toward achieving your financial goals or a CPA to ensure your tax filings are handled correctly, our experienced team is here to help.
Contact us today to schedule a consultation and learn how we can help you create a comprehensive financial strategy that fits your needs. Call us at (410) 321-0206 or visit jonesadvisoryllc.com to get started.
As we approach 2025, now is the time to start thinking ahead about your tax planning strategies. Whether you're an individual taxpayer, a small business owner, or an investor, understanding the tax landscape for the upcoming year is crucial for optimizing your finances and minimizing your tax liabilities. With tax laws and regulations constantly changing, planning ahead is key to maximizing your savings and securing your financial future.
At Jones Advisory LLC, we specialize in helping individuals and businesses develop tailored tax strategies that align with their unique financial goals. In this blog, we’ll cover some of the best tax planning strategies for 2025, including new tax laws, deductions, and credits you should be aware of, as well as strategies to help you reduce your taxable income.
One of the most important factors to consider in your 2025 tax planning is any changes to tax laws. While specifics about tax laws for 2025 will evolve as the year progresses, there are a few key trends and updates we expect to see:
Here are some strategies to consider when planning your taxes for 2025:
Tax deductions can significantly reduce your taxable income. For 2025, you should review all available deductions and ensure you’re taking full advantage of them. Common deductions include:
Contributing to tax-advantaged retirement accounts such as a 401(k), IRA, or Roth IRA can help reduce your taxable income in 2025 while securing your financial future. In 2025, take advantage of any contribution limit increases, especially if you are behind on retirement savings. Also, if your employer offers a matching contribution in your 401(k) plan, ensure you are contributing enough to take full advantage of this benefit.
If you’re an investor, make sure your portfolio is structured to minimize your tax liability. Strategies such as holding investments for the long term to benefit from long-term capital gains tax rates or investing in tax-deferred or tax-exempt accounts can reduce the taxes you owe. In 2025, pay close attention to any changes in capital gains tax rates and plan your investment strategy accordingly.
Tax credits directly reduce your tax liability, making them even more valuable than deductions. In 2025, several credits may be available to you, including:
Health Savings Accounts (HSAs) offer a triple tax benefit: contributions are tax-deductible, earnings grow tax-free, and withdrawals for qualified medical expenses are tax-free. If you’re eligible for an HSA, consider contributing the maximum amount in 2025 to lower your taxable income while preparing for future healthcare costs.
In 2025, estate and gift taxes may be subject to changes, so it’s important to review your estate planning strategy. You may want to take advantage of the annual gift exclusion (which allows you to gift a certain amount each year without incurring tax liability) and ensure your estate plan is aligned with current tax laws.
If you’re a business owner, 2025 tax planning should focus on strategies that can reduce your business’s tax burden while ensuring you comply with evolving regulations. Here are a few tips:
Tax planning for 2025 doesn’t have to be overwhelming. By starting early, reviewing your current financial situation, and taking proactive steps to optimize your taxes, you can save money and minimize stress when tax season rolls around. At Jones Advisory LLC, we specialize in helping individuals and businesses navigate the complex world of tax planning, ensuring they maximize their savings and remain compliant with tax laws.
Call (410) 321-0206 to schedule a consultation with our experienced team of tax advisors. We’ll work with you to create a customized tax plan for 2025 and beyond. Don’t wait—take control of your financial future and start planning your taxes today!
Creating a financial roadmap is essential for any business aiming to achieve long-term success. It acts as a strategic plan, guiding your business through financial decisions, investments, and growth opportunities. At Jones Advisory, we believe that a well-crafted financial roadmap is the cornerstone of sustainable business success. In this blog, we’ll explore how to create an effective financial roadmap that sets your business on the path to growth and profitability.
A financial roadmap is a strategic plan that outlines your business’s financial goals, objectives, and the steps necessary to achieve them. It encompasses budgeting, cash flow management, revenue forecasting, and investment planning. A well-defined roadmap helps businesses anticipate challenges and seize opportunities, ensuring that financial resources are allocated efficiently.
The first step in creating a financial roadmap is setting clear, measurable financial goals. These could include increasing revenue by a certain percentage, reducing expenses, or expanding into new markets. Ensure your goals are SMART—Specific, Measurable, Achievable, Relevant, and Time-bound.
Creating a detailed budget is essential for financial planning. Break down your budget into various categories, including operational costs, marketing expenses, and salaries. Regularly review and adjust your budget to reflect changes in your business environment.
Effective cash flow management is crucial for maintaining liquidity. Monitor your cash inflows and outflows to ensure that you have enough working capital to meet your obligations. Consider tools or software that can help automate cash flow tracking.
Accurate revenue forecasting is vital for making informed financial decisions. Analyze historical data, market trends, and seasonal fluctuations to project future revenues. This forecasting will help you identify potential growth opportunities and prepare for downturns.
Keeping track of your expenses is essential for maintaining profitability. Implement a system to categorize and monitor expenses regularly. This practice will help you identify areas where you can cut costs and improve efficiency.
Deciding where to invest your resources is a key aspect of financial planning. Evaluate potential investments carefully, considering their expected returns and risks. Your financial roadmap should outline short-term and long-term investment strategies that align with your business goals.
A financial roadmap is not a static document; it should be reviewed and adjusted regularly. Schedule quarterly or bi-annual reviews to assess your progress toward your goals. Use these reviews to adjust your strategies based on changing market conditions or business performance.
Creating a financial roadmap can be complex, and that’s where professional guidance can make a difference. Working with a financial advisor can provide several benefits:
At Jones Advisory, we specialize in providing tailored financial advisory services that can help you develop a comprehensive financial roadmap for your business’s success.
Are you ready to take your business to the next level with a strategic financial roadmap? At Jones Advisory, we’re here to help you craft a plan that aligns with your business goals and sets you on a path to success. Visit jonesadvisoryllc.com to learn more about our financial advisory services and schedule a consultation today. Let’s work together to turn your financial goals into reality!