Accountants & financial advisors

Accountants and financial advisors are both vital for financial well-being, but perform different functions. Find out how each of them can help you manage your money.

Accountants: Masters of Numbers

Accountants are financial professionals who specialise in recording, analysing, and interpreting financial transactions. They are experts at ensuring accuracy and compliance in financial records, tax filings, and regulatory requirements. Accountants typically engage in the following activities:

Bookkeeping & financial reporting

Accountants maintain and organise financial records, prepare financial statements and provide insights into a company's financial health.

Tax planning & compliance

They help individuals and businesses navigate complex tax laws, minimise tax liabilities and ensure compliance with applicable regulations.

Auditing

Accountants conduct internal and external audits to assess the financial integrity and internal controls of an organisation.

Financial analysis

They interpret financial data, identify trends and provide insights to support informed decision-making regarding budgets, investments and cost-cutting measures.

Financial Advisors: Guardians of Wealth Management

Financial advisors focus on helping individuals and businesses manage their overall financial well-being and achieve specific financial goals. While you probably only need one accountant or lawyer, you may need more than one financial advisor. This is because they may have specific expertise in different areas - an insurance broker or a financial planner dealing with investments for instance. Financial advisors provide comprehensive guidance and expertise in various areas including:

Investment planning

Financial advisors assess individual risk tolerance, financial goals and time horizons to develop personalised investment strategies. They recommend suitable investment vehicles such as stocks, bonds, mutual funds and real estate.

Risk management

Financial advisors analyse insurance needs such as life, health and property insurance, to protect against unforeseen circumstances and preserve financial stability.

Retirement & estate planning

Advisors help clients plan for retirement by setting savings targets, creating retirement income strategies and managing pension plans. They also assist in estate planning, ensuring the smooth transfer of assets and minimising tax implications.

Debt management

They provide guidance on managing debt including strategies for debt repayment, loan consolidation and credit score improvement.

All financial advisors are authorised by the Financial Markets Authority (FMA) to provide personalised financial advice and are listed on the Financial Services Providers Register (FSR). If you need a recommended financial advisor, you can call Melt for a referral or go to Financial Advice New Zealand.

Both professionals play crucial roles in ensuring financial stability and success

While accountants focus on accurate record-keeping, financial reporting, and taxation, financial advisors take a holistic approach to wealth management, encompassing investment planning, retirement strategies, risk management and debt management. The expertise of both can help you navigate your finances with confidence and make informed decisions that align with your aspirations.

When seeking financial assistance, it’s important to understand your needs and goals to determine whether an accountant or financial advisor is the right fit for you.

Call Melt for advice on 021 365 725 or email us today:

Small business accounting - Bare Bones Accountants
Small business accounting - Bare Bones Accountants