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CPA financial planning practices are growing faster than the broader financial planning profession and have a higher operating profit margin than similar-sized peers. Over the past several years, the typical CPA financial planning practice generated over $400,000 in revenue, requiring the efforts of one and a half individuals on a full-time equivalent basis (FTE).
These are some of the many intriguing findings of the 2007 AICPA/Moss Adams CPA Financial Planning Practice Study, the first comprehensive effort to profile the CPA financial planner universe. This landmark study provides insights into how successful CPA financial planners are running their practices—and the challenges that they face.
The CPA financial planning practice has taken hold as an attractive niche over the last two decades. These practices are growing at a healthy rate, but they have experienced some challenges, as well. The AICPA/Moss Adams Study contains detailed information on the state of this practice area today.
The Study includes:
The unique AICPA/Moss Adams study provides all the information you need to understand this dynamic practice area.
Note on the PDF version: If you order the download version, the electronic download file will be accessible immediately after completing your purchase. Access to this file – from the My Download page – expires 90 days from purchase date.
Please note this product purchase is non-refundable. For more information about this product or service concerns, please contact the AICPA Service Center at service@aicpa.org or call 888-777-7077.
The data is discussed in detail throughout the report and listed in data tables in an appendix.
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Practicing in this niche is not without its challenges, as the study points out. Issues ranging from the allocation of resources, dealing with compliance issues, gaining access to clients and building partner support have always been a concern for CPAs trying to grow their practice in this area. By distinguishing highly profitable firms, the study highlights some key best practices for success. These practices include taking a strategic approach to your business, providing a well-planned menu of services and devoting time to marketing, all of which are critical to success.
So how can this study help you be more successful in this challenging and rewarding practice area? First, it is important to focus on your own definition of success. While the study identifies four broad practice models, there are many other variations. Review the study in detail and think about what it means to your practice. What are the key challenges you face and areas that you need to focus on to be successful, however you define it? Use the detailed common financial statement information in the study to analyze your own practice: Are you allocating resources like the highly profitable firms in the study?
Whether you are contemplating entering the niche of personal financial planning or are already successfully practicing in this area, this study will serve as a powerful tool. The Personal Financial Planning Specialty Area of the AICPA plans to assist the membership in putting the results of the study into action. Members of the PFP Membership Section will see best practices and challenges from this study integrated into web seminars, the PFP networking group initiative, conference sessions and articles in our professional publications. The larger AICPA membership will also benefit from seminars and conference sessions spun toward their needs to serve as an answer to whether they should enter into this practice area and, if so, how to best proceed. Personal financial planning and investment advisory services are a natural addition to the services CPAs provide. Help yourself and the entire PFP community by using this study to add, improve and/or expand your services in this area.
Good luck!
Lyle K. Benson, Jr., CPA, PFS
2007 Study Task Force Member
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