QUESTION: Can an accountant make money only by charging fees for a financial planning engagement?

ANSWER: Fee-only financial planners have operated successfully for many years. Fee-only financial planners recognize their fiduciary responsibility to clients, and endorse the goals of objectivity, full disclosure, confidentiality, professionalism and competence. Many individuals charge only fees - in fact a typical fee arrangement might consist of a flat fee or hourly fee or a fee to manage assets. Many earn a good living by only charging fees. With a limited client base, it is highly recommended that an accountant or firm charge fees rather than seek commissions.

QUESTION: Do you believe accountants can be objective if they collect commissions?

ANSWER: At the National Network of Accountants, we firmly believe that professional objectivity can be achieved and maintained no matter what type of compensation structure is used. Whether a flat fee is charged, fees are received for asset management, hourly fees are charged, commissions are received on the sale of products, or various offset arrangements are established, all accountants can maintain their true objectivity. The subject of objectivity is really a function of the accountant's personal and professional belief system, which is based on their approach to meeting the specific needs of each client. This has been and continues to be a guiding principle of the accounting profession.

QUESTION: Do accountants have to register as RIAs (Registered Investment Advisor) to do financial planning?

ANSWER: No. Currently there is an exemption for accountants to register as RIAs. However, this exemption is only applicable if an accountant's financial planning involvement is only "incidental to" his practice. While a firm or individual may operate under this exemption in the beginning of the development process, it is certainly not advisable to operate under this exemption when a practice is up and running. We strongly advise anyone interested in developing a financial planning practice to register as an RIA. For additional information about this important area, go to the section of this website.

QUESTION: Will an accountant's liability insurance cover her financial planning activities?

ANSWER: For many firms, standard liability insurance probably will not cover the addition of financial planning activities into a practice. It is our advice that accountants or managing partners speak to the practices' current insurance carrier to determine if these activities are covered under the practice's liability insurance policy. It is our belief that to properly build a career in financial planning, whether a fee is charged or commissions are collected are certain risks involved. Proper E&O (Errors & Omissions) insurance coverage is necessary to operate a practice efficiently and effectively. The National Network of Accountants has developed and established relationships with insurance providers who can provide errors and omissions coverage that is appropriate for every firm. For additional information about this important area, go to the Errors & Omission section of this website.

QUESTION: Will the National Network of Accountants sponsor and support licensing for accountants interested in receiving Series 6 and 7 licenses?

ANSWER: The National Network of Accountants does not actively sponsor and support accountants in the training and preparation for the Series 6 and 7 exams. We believe licensing as a registered representative to sell investment products is in conflict with many of the services that are provided by accounting firms. It is our belief that issues such as soft dollar arrangements between partners, selling away, giving advice on client's business ventures, as well as paying client's bills are violations of current NASD regulations. If an accountant or accounting firm is desirous of obtaining Series 6 and 7 licenses, we urge them to seek counsel's advice before proceeding. This area represents major potential areas of conflict. If an accountant determines that it is in her best interest to become licensed in this area, we would suggest being licensed through the Series 7 exam. The Series 7 exam is more advantageous in today's marketplace. It is necessary if an accountant is handling accounts that require ACATS from other broker/dealers. Many times accountants will have clients who will be involved with stocks and bonds, and to move those accounts the accountant will require a Series 7 license. For additional information about this important area, go to the Licensing section of this website.

QUESTION: Will the National Network of Accountants sponsor and support accountants and firms interested in getting licensed for insurance?

ANSWER: The National Network of Accountants will sponsor and support any accountant interested in obtaining an insurance license whether it is in the area of life insurance, health insurance or property and casualty insurance. It is our belief that proper insurance licensing is critical in a well-drafted financial plan. Ignoring insurance coverage and not being aware of the specific coverage options is neither professional nor objective and prohibits a comprehensive financial plan from being developed for a client. For additional information about this vital area, go to the Financial Planning section of this website.

QUESTION: Will clients pay a fee for financial planning?

ANSWER: Many individuals currently pay fees for financial planning services. The question is not will clients pay a fee for financial planning, but is the accountant willing to ask them to pay a fee. The difficulty in setting the proper fee has always been a problem for the accounting practitioner. Accountants who attend our two-day Practical Skills Seminar become exposed to and will understand what the fee range is for a comprehensive financial plan, how much competitors are currently receiving, and how to charge fees. For additional information about this important area, go to the Events section of this website.

QUESTION: What distinguishes the National Network of Accountants' financial plans from those prepared by American Express, Merrill Lynch, and other investment and insurance firms?

ANSWER: The planning done by the National Network of Accountants is accomplished through the use of a proprietary software package developed and maintained in-house. The financial plans prepared with the accountant through the National Network of Accountants are not available to anyone else. This software is designed specifically for accounting professionals; insurance and/or investment personnel do not have this package available to them. The AICPA has long supported the theme that all financial planners are not created equal. Through the use of this proprietary software package, accountants can successfully separate themselves from all non-accounting competitors.

QUESTION: Who is an ideal client for financial planning?

ANSWER: An ideal client for financial planning is someone who cares about his financial future, and is willing to be open and forthright about his financial affairs. He must also be willing to work with his accountant because of the trust he has developed in the accountant. These individuals realize the value that an accountant can bring to the table and therefore are willing to pay a fee. We prepare two types of financial plans, an "accumulation plan" and a "distribution plan." An accumulation plan is one that is prepared for someone who is accumulating assets toward some future event, such as retirement, college planning, etc. A distribution plan is for someone who is reaching the phase of his life that he is concerned about conservation and distribution. This last type of plan is often referred to as an estate or retirement distribution plan.

QUESTION: How do accountants determine what to charge clients for financial planning services?

ANSWER: After attending our two day Practical Skills Seminar Program accountants will learn that individuals involved in financial planning charge fees and/or commissions in various ways. The five most common methods are hourly fees, commissions on the sale of products, asset management fees, flat fees, and fee offset. Following the two-day Practical Skills Seminar, the NNA staff will design and build a business plan with the accountant and her firm. Through the use of our business development process, we will help the accountant determine the best way to approach clients, maintaining consistency with the individual's or firm's philosophy, belief, and business practices.

QUESTION: How do accountants market financial planning services?

ANSWER: The NNA has developed an eight-step marketing program, which is unique to our organization. Because of this diversified program, many accounting firms have found it easy to select one of the eight programs that will work specifically for their firm. These programs involve many proprietary systems which, when utilized, permit accountants to successfully market their financial planning practices. A major portion of our work is in the area of assisting accountants and accounting firms to market. We have found that marketing is an area that demands a great deal of attention on our part. Although many accountants have a thorough technical knowledge of the tax law and financial areas, marketing is an area that is often overlooked. We have developed extensive skills and focus in this area. We work with each firm to develop a program for marketing their practice in such a way that the goals established in the firm's business development questionnaire are achieved.

QUESTION: How does the National Network of Accountants make money?

ANSWER: We make money in several ways. The National Network of Accountants is a unique fee-for-membership program, which many accountants interested in developing their practices have joined. However, the majority of our income comes through the development of financial plans, conducting our two-day Practical Skills Seminars, the referral network we have established, overrides on financial products, marketing consulting and the sale of point-of-purchase materials.

QUESTION: What does the National Network of Accountants charge for a financial plan?

ANSWER: Financial plans are broken down into two types: accumulation and distribution. An accumulation plan is prepared for $440, whereas a distribution plan is prepared for $880. Both accumulation and distribution plans are turned around within 15 business days.

QUESTION: Can the National Network of Accountants help accountants implement the financial planning recommendations for each financial plan?

ANSWER: We have the ability through our referral network and in-house services to implement any and every financial plan prepared for an associate or a member of the National Network of Accountants. Annually, we implement and monitor thousands of financial plans nationally.

QUESTION: How do interested accountants get started in financial planning with the National Network of Accountants?

ANSWER: The only practical way to get started doing financial planning is to attend our two-day Practical Skills Seminar. These seminars are held monthly at convenient locations and enable accountants to assess their skills, staff and necessary commitment to developing a financial planning practice. Through attendance at our two-day Practical Skills Seminar and a personal business development meeting, we can get an accountant on the road toward building a successful practice in a very short period of time. For additional information about this important area, go to the Events section of this website.

QUESTION: Should an accountant obtain a CFP or PFS designation?

ANSWER: We believe a CFP or PFS designation is significant and necessary if an accountant wants to do financial planning. However, if she is only going to do financial planning on an irregular basis, the CFP/PFS is not critical, but we still believe it is necessary to give the accountant the technical knowledge required to be successful.

QUESTION: How extensive is the National Network of Accountants support system, and do you have the staff to assist me?

ANSWER: The NNA has an extensive staff of personnel in many states across the United States. Our support staff is quite extensive. Our professionals are available to help each accountant provide the support and confidence in both the technical and business development areas. For information in your particular area, go to the affiliate section of the website.

QUESTION: What is the Preferred Provider Network (PPN)?

ANSWER: The Preferred Provider Network is a diverse professional resources network. The members of this organization have all been selected based on their reputation and ability to provide professional services to accountant members of the National Network of Accountants and member accountants' clients. Financial planning is truly a team effort. As the quarterback of the financial planning team, the accountant will require professional support from a variety of areas ranging from legal, banking, and valuation to benefits administration, lending, and others. Through the local chapters of the Preferred Provider Network, comprehensive planning is now possible for each accountant's clients. For additional information about this important area, go to the PPN section of this website.

QUESTION: What can an accountant expect to earn with financial planning services?

ANSWER: It is estimated by the AICPA that each accountant controls approximately $100 million worth of assets for every $1 million of billing done by the firm. The ratio of 1:100 is the basis for many accountants entering the asset management arena. Assuming that an accountant did earn ½ of 1% on assets under management, he could increase his annual billing by 50%. To make it simple, if an accountant bills $1 million he will earn an additional $500,000 if he can collect $100 million under management. The National Network of Accountants has extensive experience working with accounting firms. It will take the average accounting firm 3 years to reach this goal. On the insurance side, each client for assets under management normally requires professional estate planning, which may require life insurance, long-term care, disability insurance, as well as liability insurance. These insurance products will equal the income received from the assets under management.

Jonathan Gassman, CPA
G&G Planning Concepts, Inc.
New York, New York

"Working with the National Network of Accountants assists in expanding our firm into new practice areas, which allows our firm to provide services that many clients are asking for."

Jeffrey T. Spiegel, CPA
Schooler, Weinstein, Minsky & Lester, P.C.
East Meadow, New York

"The National Network of Accountants takes a proactive approach to practice development. This is reflected in its operations and is an integral part of the networking programs it offers to CPAs."

William Lewis, CPA
Lewis, Kramer & Weingarten, LLC.
Manalapan, New Jersey

"Being a member of the National Network of Accountants has allowed me to become familiar with many of the different technical aspects of personal financial planning."

Steven Siegel, CPA
Partner
Kalmus, Siegel, Teitelbaum, Harris Goldfarb, LLP
Garden City, New York

"Tapping the resources provided to us by the National Network of Accountants and spending time with members of the group has increased my ability to sell myself and the services our firm offers."

Robert Goldfarb, CPA
Partner
Schoenfeld Mendelsohn Goldfarb, LLP
Woodbury, New York

"The guidance and training provided by the National Network of Accountants is unparalleled in the industry."

John DeFalco, CPA
Sheehan Financial Advisors, LLC
Brightwaters, New York

"Membership in the National Network of Accountants has been extremely helpful in developing our financial and estate planning niche."