In general, financial planning focuses on short-term goals while estate planning addresses long- term goals. Financial planning is done to help you make financial decisions that affect short periods of time. Estate planning is usually done so that your loved ones are financially secure after theyve died or after a disability. Accountants help people plan for the future by calculating their pocketbooks and creating financial documents for them to sign. People use these plans when creating their budget or making major financial decisions. A good plan will help you save money, pay off debt, invest your money wisely and more. However, its important to remember that these plans are suggestions youre still responsible for making wise decisions with the information provided to you. Most accountants create financial plans for their regular clients but dont call them that. Instead, they call them tax returns or personal financial statements. These plans are used for tax purposes CPAs submit them to the IRS so they dont get audited every year. However, those arent the only accounts CPAs use personal financial plans for either business or personal use. Clients usually hire accountants so they can grow their businesses and make more money through advice and tax code optimization strategies. Financial planners help companies develop long-term strategies that increase profits and build business growth cycles. Estate planning documents accountants have access to when helping families prepare for death or disability also prove useful here as well- family members can appoint family members as guardians or power of attorneys in case of injury or sudden death. Death is the only certainty in life. No one can ever truly know whether theyll live long or short life spans. Some people die suddenly while others experience a prolonged illness that causes disability. Even those who live healthy lives can still suffer serious accidents or illness.
