Accountants Trying to Expand Beyaond Bean-Counting Biz

By Friedman, Amy S. | American Banker, July 19, 2001 | Go to article overview

Accountants Trying to Expand Beyaond Bean-Counting Biz


Friedman, Amy S., American Banker


Accountants are not the first group to come to mind when thinking of potential competitors in the retail financial services marketplace.

But CPA firms are vying more and more with banks and other financial services providers at several levels for advisory clients and commissions.

The Uniform Accountancy Act, the model licensing law for accountants, was revised in January 1998 to let CPAs accept commissions for selling financial products and fees for providing financial advice and referrals. Since then the number of states in which CPAs can accept these monies has more than doubled, according to the American Institute for Certified Public Accountants.

Before 1998 less than 20 states permitted accountants to accept fees and commissions. Now 39 let them collect both, two others let them accept only fees, and another two commissions.

Though a survey conducted by the AICPA spinoff portal CPA2Biz found that 56% of accountants now either offer financial planning or plan to do so soon, accountants are not generally seen as a big threat to banks, insurance agents, and other distributors of financial products or services.

Whether accountants ultimately will be able to take client dollars away from these companies is still being debated.

Chris Swift, national industry director for KPMG LLP's insurance practice, said financial services companies are discovering that accountants are a viable financial services distribution channel.

Other industry observers say that most financial institutions still see accountants as tax specialists and bean counters.

Phyllis Bernstein, a consultant who helps accountants become financial planners and investment advisers, said the relationship between the two groups has not yet evolved to the point where most financial services providers realize the accountant can do more than just provide tax advice.

And even though state laws are changing how accountants can function, they are still not sure what model to use to position themselves in financial services, she said.

"There's a lot of analysis paralysis" as accountants figure out whether to set themselves up as independent providers or create alliances with financial services firms, Ms. Bernstein said.

Some accountants are aligning themselves with insurance companies, wire houses, money management firms, and other financial services companies. Others are maintaining their independence by signing contracts with broker-dealers and third-party marketers to use their products and services.

Over the past five years several financial services providers have set up ways to help accountants sell products and provide advice. The most prominent companies to do so include the money manager CIBC Oppenheimer Corp. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Accountants Trying to Expand Beyaond Bean-Counting Biz
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.