Financial advisors and accountants both help people manage money and reach financial goals. But certified financial planners (CFPs) and certified public accountants (CPAs) have very different jobs and different strengths. Here's how to tell the difference between the two and decide which, if either, fits your needs.
Is a financial advisor the same as an accountant?
No, a financial advisor is not the same as an accountant.
"Financial advisor" is a general term that isn't regulated, so anyone can use it. A certified financial planner (CFP®) is one type of financial advisor who has earned a specific credential. Other advisors may be registered investment advisors (RIAs), broker-dealer representatives or have no credential at all. (Registering with the SEC or the state doesn't imply a level of skill or the regulator's endorsement, though.)
Sometimes accountants provide financial advice, and sometimes financial advisors do accounting, but the two jobs require different certifications and skills. In NerdWallet's analysis of SEC Form ADV Part 1 data as of Sept. 1, 2026, only about 3% of advisors serving individuals also reported operating as an accountant or accounting firm. (“Advisors serving individuals” means SEC-registered advisory firms that manage at least half of their assets for individuals and high-net-worth individuals.)
What is a certified financial planner (CFP)?
A certified financial planner (CFP) is one type of financial advisor who has earned a specific credential. Other advisors may be registered investment advisors (RIAs), broker-dealer representatives or have no credential at all. In general, a CFP helps clients set goals, reviews their finances and evaluates their risk tolerance. Some CFPs specialize in areas such as divorce, retirement planning or small business. They must pass a test covering risk management, investments, taxes and retirement and estate planning. You can check a professional's background using the CFP Board's lookup tool, as well as with the SEC at adviserinfo.sec.gov, FINRA's Broker Check tool, the state board of accountancy, NASBA's CPAverify, NAPFA, Garrett Planning Network and XY Planning Network.
What is a certified public accountant (CPA)?
A certified public accountant (CPA) is a person licensed by the state. They often prepare tax returns, review financial records for accuracy and compliance, provide tax planning services and sometimes may offer guidance on budgeting, risk management, business strategy and other topics. They must pass a test demonstrating proficiency. They also must have a state license to practice.
Can a CPA also be a financial advisor?
Yes. Someone can hold both a CPA license and a CFP designation if they meet all the testing, education and licensing requirements. A CPA who gives investment advice may also need to register as an investment advisor.
Having dual credentials as a CPA and CFP can mean one professional covers tax and planning needs. It doesn't guarantee better advice, and fees and conflicts of interest may vary.
CFP vs. CPA compared
Certified Financial Planner (CFP) | Certified Public Accountant (CPA) | |
|---|---|---|
Primary focus | Financial planning and investment advice. | Tax return preparation, tax planning and accounting. |
Fiduciary standard (a fiduciary is legally required to act in your best interest) | Yes, CFPs must act in the best interests of the client when providing financial advice. | No. CPAs must act in the best interests of the public; however, fiduciary duty may apply if acting as a trustee, an executor of an estate or providing investment advice as a registered advisor. |
Requires a state license | No. (But a CFP who gives investment advice for pay may need state or SEC registration as an investment advisor or be a registered representative of a broker-dealer.) | Yes. |
Requires college degree | Yes. | Yes. |
Requires passing a test | Yes. | Yes. |
Requires continuing education to retain designation | Yes. | Yes. |
Sources: Love and Eickemeyer, "Fiduciary Duty, Due Care, and the Public Interest." The CPA Journal. D. Strausfeld, "A new fiduciary rule: What CPA financial planners need to know." Journal of Accountancy. CFP.net, FINRA.org, National Association of State Boards of Accountancy, Association of International Certified Professional Accountants. | ||
Financial advisor vs. CPA: Which fits your needs?
The answer depends on what services you need, how complex your finances are and what you're willing to pay. Some people use both. Some use neither.
Advisors may change a percentage of assets under management (AUM), such as 1% a year, which would be about $5,000 on $500,000 managed; they may also charge hourly or flat fees. CPAs usually bill hourly or by project. Costs vary, so be sure to ask each pro how they're paid and whether they receive commissions.
A financial advisor might be a better fit if you mostly need:
Ongoing investment management or investment advice.
Help coming up with a plan to pay off debt.
Help building a comprehensive retirement plan or college savings plan.
A review of your insurance coverage and estate plan, often with input and execution from an insurance agent or attorney.
Coordination of your investments with your tax strategy.
Help setting up and sticking to a budget.
A CPA might be a better fit if you mostly need:
Someone to prepare and file your taxes.
Business operating advice.
Business succession advice.
Someone to set up a business entity for you.
Bookkeeping or accounting for a small business.
Someone to help you through a tax audit or represent you in front of the IRS.
Article sources
- 1.FINRA.org. Professional Designations. Accessed Apr 22, 2026.
- 2.Association of International Certified Professional Accountants. CPA explained: Careers, ethics, and why licensure is the gold standard. Accessed Apr 22, 2026.
- 3.National Association of State Boards of Accountancy. What Are the Four CPA Exam Sections?. Accessed Apr 22, 2026.
- 4.National Association of State Boards of Accountancy. Getting a License. Accessed Apr 22, 2026.
- 5.CFP Board. How Does CFP® Certification Complement My CPA?. Accessed Apr 22, 2026.
