Why Your RIA Needs a CPA Firm that Understands Financial Services

Why Your RIA Needs a CPA Firm that Understands Financial Services - Elevate CPA Group

When choosing a CPA firm, it can be tempting to simply follow a colleague’s referral or a Google review. But even if a CPA firm comes highly recommended or rated, it might not be the right one for your RIA firm.

Serving RIA firms requires specialized expertise—something not all CPA firms have. Here are just a few of the benefits of working with a CPA firm that understands financial services:

Avoid leaving money on the table

Calculating an RIA firm’s income and expenses can be complicated. But a CPA who specializes in financial services knows exactly what this calculation—as well as other ratios and key performance indicators (KPIs)—should be.

This knowledge is especially valuable when it comes to custodial payments. Typically, a custodian will provide a monthly income stream to an RIA firm based on its percentage of AUM. But the custodian’s payments are not always correct. (Yes, we’ve even seen big-name custodians make mistakes.) Even if it’s small deviance, it can add up over time. A CPA who knows what to look for can swiftly identify an erroneous payment.

See how your RIA firm stacks up

A CPA firm that focuses on RIA firms will have an internal database of relevant KPIs as well as access to a national database of the same. At Elevate, we reference these two databases to benchmark our clients’ RIA firms against other similar firms. The benefit: you can determine if your RIA firm is on the right track. If not, you can leverage the data to pinpoint areas for operational improvements.

Know your RIA firm’s value

Like you tell your clients, it’s important to know the value of your assets. A CPA firm that understands financial services can help you understand the value of your RIA firm. At Elevate, we partner with the business intelligence platform Truelytics to give our clients this insight. Through Truelytics’ platform, we can even show RIA firm owners how certain changes, such as focusing on a new client demographic, could increase their firm’s value.

Stay ahead of trends

A CPA who is dedicated to the financial services industry does more than serve clients. At least that’s what we’ve found to be true at Elevate. Our CPAs focus their continuing education on financial services. This allows us to keep our clients up to speed on compliance updates and other issues. By carefully anticipating the next trend, we make sure our clients are equipped to make the most of it.

Find the right CPA firm

When seeking a CPA firm, it’s wise to do your homework. Make sure the firm knows the financial services industry as well as the complicated challenges RIA firms face. Working with a CPA who possesses this specialized expertise can not only save you time and money—it can also help you achieve growth.

We started Elevate CPA Group for precisely this reason: to give RIA firms the unique tax, accounting, and advisory support they need. Our team of CPAs, advisors, and accountants focuses solely on the financial services industry. More than a tax firm, we act as our clients’ strategic growth partner, allowing them to move forward with confidence.

If you have questions or would like to learn more about working with Elevate, schedule your complimentary consultation today.