From Tax Returns to Financial Plans: A CPA's Guide to Launching an RIA

If you're a CPA who's ever found yourself answering investment questions during tax prep meetings or helping clients think through retirement contributions, you've probably wondered: Should I be offering financial planning services?

The short answer? You're already halfway there.

We recently sat down with Maggie Beach, CPA, CFP®, RICP®, MBA, founder of NexJenn Financial Services, who made the successful transition from running a traditional CPA practice to launching a thriving RIA. Her story, complete with the challenges of starting during COVID and navigating her first regulatory audit, offers a realistic roadmap for CPAs ready to make the leap.

Why CPAs Are Natural Financial Advisors

Here's something that might surprise you: Two out of every three affluent individuals say tax knowledge is the most important factor when selecting a financial advisor. 

Think about it. Your clients already:

• Trust you with their most sensitive financial information
• Ask you investment and retirement planning questions during tax meetings
• See you as one of their most trusted advisors

When you launch an RIA as a CPA, you're not starting from scratch—you're building on an existing foundation of trust and expertise.

Still not convinced you need another revenue stream? Consider the realities of running a tax practice:

• Seasonal stress: Your entire year compressed into a season of chaos
• Shrinking margins: DIY tax software is eating into traditional prep fees
• IRS deadlines: You're always responding to external pressures instead of controlling your schedule

Financial planning flips this script. You get to:

• Spread client interactions throughout the year
• Set your own meeting schedule
• Create deeper, more meaningful relationships
• Build recurring revenue streams
• Continue to impact your clients' financial futures in significant ways

Instead of just preparing a tax return and entering data, you’ll be able to expand upon this and talk to clients about their financial futures while creating a meaningful impact.

Where to Start: How to Launch an RIA

Let’s cover some basics when it comes to launching an RIA. This isn’t an all-inclusive list, but it will give you a good place to start as you begin to brainstorm this new business venture. 

1. Define Your Service Model

Start by looking at your current client list. Segment them into potential service categories:

• Financial planning only
• Asset management
• Tax preparation
• Some combination of all three

This exercise will help you visualize what your new business model might look like.

2. Get the Right Credentials

Good news: As a CPA, you get a fast track to the CFP designation through the Accelerated Path to CFP Certification, because as a CPA, the CFP board recognizes your education and experience.

Not interested in getting your CFP designation? For RIA licensing, you'll need a Series 65. 

3. Structure Your Fees

Moving from hourly billing to recurring revenue can be tricky, but it's worth it. Consider these models as you think about how you want to structure your financial planning fees:

• Project-based: One-time financial plans (4-6 month engagements)
• Subscription-based: Ongoing planning fees, paid on a monthly or quarterly basis
• AUM fees: Percentage of assets under management
• Hybrid models: Some combination of the above

4. Register as an RIA

Once you’ve put some thoughts on paper, it’s time to get registered! The RIA model gives you the foundation to build the practice that focuses on:

• Independence and autonomy to serve clients as you see fit
• Flexibility to outsource asset management through a TAMP (Turnkey Asset Management Platform) while maintaining control
• Freedom to structure your services and fees that make the most sense for your clients

And yes, RIAs have compliance requirements, and you'll eventually be audited, but here's the thing—compliance is manageable with the right support. Using compliance software and setting up systems from day one will help you stay on top of your compliance tasks in a manageable way.

Building Your Niche

At XYPN, we talk about niches constantly, and for good reason. Whether it's on XYPN Radio or in webinars, the message is loud and clear: finding and owning your niche isn't just helpful, it's essential for building a thriving advisory practice.

The good news? As a CPA, you already have a powerful niche: tax-centric financial planning. But you can broaden this and go deeper. Need some ideas? 

• Real estate investors: If you work with rental property owners
• Business owners: Leverage your business tax expertise
• Pre-retirees: Help with tax-efficient retirement strategies
• Caregivers: Assist families managing elderly parents' finances

Maggie started with real estate investors as a launching pad (she has property management experience), but eventually focused on retirement and caregiving situations.

Ready to Make the Leap?

Beyond all the technical setup, Maggie's success came down to some simple mindset shifts: trusting herself despite imposter syndrome, defining success on her own terms (having time for Tuesday morning golf league), and recognizing the real impact she was having on clients' lives. 

Her parting advice? Stop waiting for the perfect moment. She’s never heard of an advisor who was glad they waited to start their RIA, but she’s heard many say they regretted not starting earlier.

To get started, you need a willingness to learn, good systems and support, and trust in your expertise.

Ready to explore launching your own RIA? The path from CPA to comprehensive financial advisor isn't just possible—it's a natural evolution of the trusted advisor role you're already playing. Your clients are asking the questions. You have the tax expertise they value most. The only question left is: What are you waiting for?