What coordination between your advisor and your CPA actually looks like
Most advisors say they "coordinate with your CPA." Here's what that usually means — and what it looks like when it's done properly.
The typical version
Advisor sends the CPA a year-end summary of realized gains and losses. CPA files the return. Nobody talks until next January. That's not coordination. That's a document handoff.
What real coordination looks like
At CAP, we're in regular contact with our clients' CPAs throughout the year. Here's what a typical tax season conversation actually covers:
Before year-end:
- We review projected income and capital gains with the CPA to identify tax planning opportunities
- We discuss whether Roth conversions make sense given the client's current tax bracket
- We coordinate the timing of any asset sales or income events
- We evaluate charitable giving strategies that could reduce the tax bill
During tax prep:
- We provide detailed cost basis information and transaction summaries
- We flag any unusual items — like K-1s from private investments — so there are no surprises
- We review the draft return together to make sure nothing was missed
After filing:
- We update the client's financial plan with actual tax data
- We adjust the investment strategy based on what we learned
Why it changes the outcome
A client came to us after their previous advisor sold a concentrated stock position all at once — triggering a six-figure capital gains bill that could have been spread over three years. Their CPA didn't know about the sale until January. By then, there was nothing to do.
That's the cost of the "document handoff" approach. Real coordination prevents those situations.
If your advisor and your CPA don't talk to each other regularly, you're probably leaving money on the table.