How a Tax Planning Financial Advisor Can Coordinate With Your CPA Year After Year
A tax planning financial advisor does not replace your CPA. Instead, the two can work as partners. Your CPA brings deep tax knowledge and prepares your return. Your advisor sees your investments, cash flow, retirement plans, and goals throughout the year. When they share information, decisions can be made before the tax year ends instead of discovered after.
Many families never get that coordination. Their advisor makes portfolio changes without checking the tax impact, and their CPA learns about those changes months later in a stack of 1099s. This article explains how a financial advisor and CPA working together can support proactive tax planning, year after year.
Tax Preparation vs Proactive Tax Planning
These terms are often used interchangeably, but they are different.
Tax Preparation Looks Back
Purpose: Reporting what already happened during the year.
Timing: Usually done after the year closes.
Focus: Accuracy and compliance.
Tax Planning Looks Ahead
Purpose: Considering how future decisions may affect taxes.
Timing: Ongoing throughout the year, especially before year end.
Focus: Coordinating income, investments, retirement accounts, and giving with your goals.
Prosperitus describes its tax planning and integration service this way: it coordinates with your CPA and designs strategies intended to reduce friction and create efficiency year after year.
Who Does What: Advisor and CPA Roles
A clear division of roles can help avoid gaps and overlap.
What Your CPA Typically Handles
Preparing and filing tax returns
Interpreting tax law for your specific situation
Representing you with tax authorities when needed
Business tax filings and entity questions
What a Tax Planning Financial Advisor May Contribute
Investment decisions with tax awareness: Considering gains, losses, and account types when making portfolio changes.
Retirement income planning: Thinking through which accounts to draw from and when.
Cash flow and estimated payments: Helping make sure funds are available when taxes are due.
Bringing the CPA in early: Sharing upcoming decisions so the CPA can weigh in before they happen.
Prosperitus also offers integrated planning in collaboration with Prosperitus Wealth Accounting, an independent CPA firm, and coordinates with outside CPAs as well.
Strategies an Advisor and CPA May Review Together
Every situation is different, and not every strategy fits every family. These are common topics that may be worth a joint conversation. Tax rules change often, so always check current IRS guidance.
Investment Related
Tax loss harvesting: Realizing losses that may offset gains, while following wash sale rules.
Asset location: Holding different types of investments in taxable, tax-deferred, or tax-free accounts based on how they are taxed.
Managing concentrated positions: Spreading sales over time may help manage the tax impact.
Retirement Account Related
Roth conversions: Converting part of a traditional IRA to a Roth IRA in lower income years may make sense for some people. Conversions are taxable in the year they happen.
Required minimum distributions: Under current rules, RMDs from many retirement accounts begin in your 70s. Planning ahead may help manage the tax impact.
Contribution choices: Choosing between pre-tax and Roth contributions where both are available.
Charitable Giving
Giving appreciated assets: Donating appreciated securities may offer tax benefits compared to giving cash.
Donor advised funds: Some families use these to group several years of giving into one year.
Qualified charitable distributions: IRA owners who are age 70½ or older may be able to give directly from an IRA to a qualifying charity.
Business Owner Related
Retirement plan design: Plan choices can affect deductions and savings.
Entity strategy: Business structure can affect how income is taxed.
Exit planning: The timing and structure of a sale can have significant tax effects.
Tax Efficient Retirement Income
The move from saving to spending is one of the most important times for tax coordination. Retirement planning at Prosperitus can include income strategy, tax planning, withdrawal sequencing, Social Security evaluation, and long-term healthcare considerations.
Questions to Ask Before Retirement
Which accounts should I draw from first?
Are there lower income years before Social Security or RMDs begin?
How might Social Security timing affect my taxes?
How will Medicare premiums relate to my income?
A Simple Annual Coordination Rhythm
After filing: Share the completed return with your advisor so the plan reflects your actual tax picture.
Mid year: Review income projections and any planned transactions.
Fall: Hold a joint conversation about year end decisions, such as harvesting losses, conversions, and charitable gifts.
Year end: Confirm estimated payments and any final moves.
Read more about why coordination matters in The Difference Between Managing Wealth and Coordinating It.
Who Prosperitus Wealth Advisors Serves
Prosperitus Wealth Advisors is "a boutique fiduciary firm for those who value depth, simplicity, and trust." The firm is located at 2855 N University Dr, Suite 110, Coral Springs, FL 33065, and works with individuals and families, including:
High-net-worth business owners preparing for liquidity events, succession, or exit planning
Pre-retirees focused on tax optimization and retirement income alignment
Affluent retirees seeking income clarity, risk protection, and legacy planning
See all services on the Services page.
Take the Next Step
If your advisor and CPA rarely talk, a coordinated approach may help. Book a Consultation or Schedule Your Introductory Call with Prosperitus Wealth Advisors. Wealth, Simplified. Service, Elevated.
Frequently Asked Questions
Can a financial advisor help with tax planning?
Yes. A financial advisor can consider taxes when making investment, retirement, and giving decisions, and coordinate with your CPA, who prepares returns and advises on tax law.
Should my financial advisor and CPA talk to each other?
It can help. When they share information, decisions like Roth conversions, asset sales, and charitable gifts can be reviewed before year end.
What is the difference between a CPA and a financial advisor?
A CPA focuses on tax preparation, tax law, and accounting. A financial advisor focuses on investments and planning. Working together, they can cover more of your financial picture.
When is the best time for tax planning?
Throughout the year, with special attention in the fall, before year end deadlines for many tax decisions.
What is a Roth conversion and is it right for me?
A Roth conversion moves money from a traditional IRA to a Roth IRA and is taxable in the year of conversion. Whether it fits depends on your current and future tax situation. Review it with your CPA and advisor.
What is a qualified charitable distribution?
A qualified charitable distribution allows IRA owners age 70½ or older to give directly from an IRA to a qualifying charity. Rules and limits can change, so check current IRS guidance.
Advisory services are only offered to clients pursuant to a written advisory agreement. Investment advisory services offered through Prosperitus Wealth Advisors, LLC, a Registered Investment Advisor. This article is for educational and informational purposes only and should not be considered investment, tax, or legal advice. It is not a recommendation to buy or sell any security or to adopt any particular strategy. Investing involves risk, including the possible loss of principal. There is no guarantee that any strategy will achieve its objectives. Please consult with a qualified professional regarding your specific situation. Additional information, including the firm's Form ADV, is available upon request.
