CPA vs. Financial Advisor: Which Do You Need?

A certified public accountant (CPA) focuses on taxes, offering services like preparation, filing and tax strategy guidance. A financial advisor, by comparison, typically specializes in financial planning and investment management, which can also include tax planning. Some financial advisors may also hold a CPA designation, but their primary role is helping clients grow and manage wealth. Choosing between a CPA and a financial advisor depends on the type of services that you need, and in some cases, working with both can provide comprehensive support for your overall financial life.

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What Is a Certified Public Accountant (CPA)?

CPAs are tax professionals who have earned the designation of certified public accountant through a combination of expanded education, experience and state licensing. They provide tax services along with advanced accounting and some financial planning specific to taxation.CPAs have attestation powers and can perform auditing functions, with the ability to represent you in front of the IRS if you are audited.

For businesses, CPAs provide expanded taxation and auditing services. They can help companies manage their money, taxes and investments in accordance with laws and regulations.

Qualifications for the CPA Designation

The Association of International Certified Public Accountants (AICPA) sets the standards and qualifications for the CPA professional designation. Each state has a Board of Accountancy that sets the specific standards for the state.

In general, you must have 150 extra hours of either undergraduate or graduate education to become a CPA. Six months to two years of experience working in public accounting, depending on the state you live in, is also necessary

After gaining the requisite education and experience, you must sit for a four-part exam, each part requiring four hours to complete. The four parts of the CPA exam are attestation and auditing, financial accounting and reporting, regulation and business environment and concepts. You must pass all four parts of the exam within an 18-month period to earn the CPA designation. Additionally, CPAs have to complete 40 hours of continuing education requirements each year and conform to strict ethics requirements as stated by the AICPA.

What Is a Financial Advisor?

Financial advisors assist individuals with investment planning and management. Many of them can also assist with financial planning and wealth management. Financial planning tasks can include debt payoff, saving and investing, retirement planning and estate planning.

It’s possible for financial advisors to have a number of different specialties, or they can be generalists. Some financial advisors have apprenticed at investment firms and gained their education and experience in that way. Usually, a financial advisor will have a degree in finance or a related subject from a four-year college or university.

In addition, advisors may have one of the professional certifications for financial advisors. These range from a more general certification, like the professional certification of Certified Financial Planner™ (CFP®), to more specific certifications focusing on a particular area of financial planning or investing.

Some but not all financial advisors are fiduciaries. Fiduciaries are charged with ensuring that their clients’ needs come first, even if they get commission from the products they sell. In addition to their fiduciary responsibilities, financial advisors holding one of the professional designations may have a code of ethics they must follow.

Licensing for Financial Advisors

Financial advisors can only give investment advice or trade financial assets on an investor’s behalf if they are licensed and have passed the Series 7 and Series 63 exams. The Financial Industry Regulatory Authority (FINRA), a non-governmental organization that protects investors, oversees both of these exams.

The Series 7 license legally allows brokers to sell most types of securities, excluding real estate, commodities futures and life insurance. This is a necessary first step for many careers in the financial industry.

The Series 63, by comparison, is the individual state license for the state in which the advisor works. This is required to sell securities and conduct business within a specific state.

CPA vs. Financial Advisor: Which Do You Need?

Picking between a CPA and a financial advisor depends largely on the type of financial assistance that you require. If your primary concerns involve taxes, such as preparing tax returns, handling audits, or addressing complex tax situations, a CPA is the right professional to consult. CPAs are experts in accounting and tax law, and they can also provide guidance for businesses or individuals managing complex financial records.

But, if your focus is on long-term financial planning, investment strategies, or retirement savings, a financial advisor may be a better fit. Financial advisors specialize in wealth management, helping clients allocate assets, plan for future goals and position themselves strategically in financial markets.

CPA vs. Financial Advisor: When Can You Use Both?

While CPAs and financial advisors serve different roles, many individuals benefit from working with both. Tax and investment decisions often overlap—especially when managing retirement accounts, selling appreciated assets, exercising stock options or planning for wealth transfers. A CPA can provide tax analysis to help you understand the implications of each decision, while a financial advisor can assess how those decisions align with your overall financial goals.

For example, a CPA may recommend harvesting tax losses or converting part of a traditional IRA to a Roth IRA to minimize your tax burden. A financial advisor can then model how those moves would affect your future income and portfolio strategy. As another example, during estate planning, an advisor may recommend a gifting or trust strategy, while a CPA could confirm how that strategy fits within IRS rules and filing requirements.

Bottom Line

A man deciding which services he needs from a CPA and an advisor.

Financial advisors and CPAs serve different purposes when managing your finances. A CPA is a certified professional specializing in tax-related services, such as preparation, filing and strategy. A financial advisors, comparatively, focuses on investment management and broader financial planning. Deciding between them depends on your specific needs, though working with both can provide complementary expertise to help you manage taxes, investments and overall financial strategy.

Tips For Handling Your Money

Financial planning isn’t easy on your own, and a financial advisor may be able to help. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing is a key part of properly handling your money, and SmartAsset wants to make sure you have the right resources at your disposal to answer your questions. Are you worried about capital gains taxes on your stocks if you need to sell? Try using SmartAsset’s capital gains calculator to see what impact taxation in your area will have.