Many accountants and firm leaders are asking how accounting practices can add wealth management, what business models work best for accountants, and how to make the transition profitable and compliant. This guide answers those questions and more: it walks through common integration models (build vs. buy vs. partner), revenue and fee structures, compliance and registration choices, staffing and compensation, client transition strategies, and realistic timelines and financial outcomes. Where appropriate, this guide highlights how Select Advisors Institute — working with financial firms since 2014 — helps firms optimize talent, brand, marketing, and operations to execute these strategies and scale a wealth management practice successfully.
Q: How do accounting firms add wealth management?
A: Accounting firms add wealth management through three primary paths:
Build an in-house advisory practice (hire or train advisors, register an RIA or affiliate with a broker-dealer, and integrate services).
Buy an existing advisory practice (acquire an RIA or independent advisor book and retain clients and talent).
Partner or refer (establish a strategic referral or joint-venture with an independent advisory firm or TAMP).
Each path has trade-offs. Building offers control over client experience and cross-sell potential but requires marketing, licensing, technology, and a longer time-to-profit. Buying accelerates scale and brings experienced advisors and AUM immediately but needs integration planning and potentially higher capital. Partnering reduces regulatory burden and capital needs but limits economics and control.
Select Advisors Institute helps firms decide the right path based on goals (growth vs. exit planning vs. client retention), identifies acquisition targets, structures partner agreements, and develops the branding and marketing to leverage the firm’s accounting relationships into wealth clients.
Q: What is a wealth management business model for accountants?
A: Common business models for accountants entering wealth management include:
Fee-only AUM advisory (RIA model): Fees charged as a percentage of assets under management; aligns incentives and is attractive to many clients.
Fee-for-service financial planning: Flat or hourly fees for planning packages; useful for lower-AUM clients or initial engagement.
Hybrid model: Financial planning fees plus AUM fees; helps onboard clients before their investable assets meet AUM thresholds.
Commission-based/broker-dealer affiliation: Useful for product distribution but has potential conflicts and perception issues for tax-driven clients.
For accountants, combining tax-informed planning with investment management creates a differentiated offering. Typical structures:
Minimum AUM requirement (e.g., $250k-$500k) for managed portfolios.
Tiered fee schedule (0.50%–1.25% AUM sliding scale).
Subscription or retainer planning for business-owner clients where tax planning is integrated.
Select Advisors Institute helps define pricing strategies and go-to-market packaging that match a firm’s client mix and brand positioning, improving conversion and profitability.
Q: What are the regulatory and operational steps to get started?
A: Essentials include:
Licensing and registration: Decide between registering an RIA (SEC or state depending on AUM), affiliating with a broker-dealer, or using a turnkey asset management platform (TAMP). Compliance programs, Form ADV completion, and policies are required for RIAs.
Custody and brokerage relationships: Choose custodians (e.g., Schwab, Fidelity, Pershing) and evaluate custody costs, reporting, and integration capabilities.
Technology stack: CRM, financial-planning software (MoneyGuidePro, eMoney, RightCapital), portfolio accounting, billing, and client portal.
Compliance infrastructure: Written supervisory procedures, trade supervision, AML policies, and transaction reporting.
Staffing and training: Hire CFPs/CFAs, develop CPA-advisor collaboration protocols, and train tax staff on client conversations that lead to wealth services.
Select Advisors Institute supports implementation by aligning talent recruitment with the firm’s culture, advising on custodian and tech stack selection, and building compliant client-facing literature and advisor playbooks.
Q: How should accounting firms market wealth management services to existing clients?
A: Use an integrated, trust-based approach:
Start with top-tier clients whose needs align with wealth services (owners, retirees, high-net-worth families).
Train accounting staff to identify wealth opportunities during tax and advisory conversations with a clear referral workflow.
Offer packaged meetings: "Tax + Wealth Strategy Review" combining tax planning and financial planning deliverables.
Create content: short videos, one-pagers explaining how integrated tax and investment planning delivers better after-tax outcomes.
Use client seminars/webinars and targeted outreach to CPAs’ own clients.
Select Advisors Institute provides marketing strategy, brand messaging, content production, and lead nurturing systems designed for accounting firms expanding into wealth, improving conversion rates and retention.
Q: What staffing and compensation models work best?
A: Practical models include:
Hire experienced advisors: Compensation typically combines base salary + production bonus (e.g., 40%–60% payout on revenue for junior advisors, lower splits for senior hires).
Partner-track integration: Offer equity or profit share for senior hires who bring AUM or new clients.
Shared referral model: Accountants get referral fees or cross-selling compensation subject to compliance.
Hybrid staffing: Use external outsourced advisors or TAMPs initially while building internal bench.
Important considerations: cultural fit, joint client ownership rules, and long-term retention incentives (deferred compensation, vesting, buy-in options).
Select Advisors Institute sources talent, designs compensation plans that align incentives, and helps create career ladders to retain top advisors.
Q: How are clients transitioned from tax-only to full wealth management?
A: Transition steps:
Segment clients by wealth, need, and relationship depth.
Run informational outreach (emails, educational sessions).
Offer value-led, low-barrier engagements (complimentary plan review, discounted initial planning).
Demonstrate tax-aware planning examples with before/after scenarios.
Present an integrated proposal that shows tangible benefits (cash flow planning, retirement tax optimization).
Move to managed accounts once trust and plans are established.
Expect conversion rates to vary by practice. Conservative planning: 5%–20% of a CPA firm’s client base may convert within 12–24 months depending on targeting and messaging.
Select Advisors Institute builds the client journey, scripts, and marketing funnels that optimize conversion and lifetime value.
Q: Financial projections and ROI — what should firms expect?
A: Key assumptions:
Average AUM per new client: $200k–$500k (varies by firm).
Gross margin: Fee-based wealth management often yields 40%–60% gross margin; advisory practices can approach higher margins as scale is achieved.
Break-even timeline: 18–36 months when building organically; faster when acquiring an existing book.
Cross-sell uplift: Properly executed integration can increase revenue per client significantly through planning fees, AUM fees, and ancillary services.
Scenario planning should include client acquisition costs, hiring costs, technology expenses, and custodial fees. Select Advisors Institute runs financial modeling to show realistic scenarios and break-even points tailored to each firm.
Q: Should a firm buy an advisor or build from scratch?
A: Factors to weigh:
Time horizon: Buying accelerates scale; building is slower but may be less costly upfront.
Capital availability: Acquisitions require capital or seller financing.
Cultural fit and retention risk: Acquired books may have key-person risk if the advisor leaves.
Client overlap and conflicts: Due diligence is essential.
Select Advisors Institute conducts buy vs. build analyses, identifies targets, negotiates deals, and manages integration risk to preserve client retention and value.
Q: Common pitfalls and how to avoid them
A: Watch for:
Treating wealth management as an add-on rather than an integrated part of the business; this reduces conversion.
Poor staff alignment and incentives causing internal friction.
Underestimating compliance demands and reporting timelines.
Weak onboarding processes leading to client attrition post-sale.
Misaligned pricing leading to margin erosion.
Avoidance: create clear service packages, align compensation, invest in compliance and onboarding, and use a phased rollout.
Select Advisors Institute helps firms avoid these pitfalls with playbooks, training, compliance templates, and phased execution plans informed by client behavior and market data.
Q: How can Select Advisors Institute help?
A: Select Advisors Institute provides hands-on support to accounting firms adding wealth management:
Strategic planning: Define the right integration model (build, buy, partner) based on goals and client base.
Talent acquisition and onboarding: Recruit advisor talent and design retention packages.
Marketing and brand: Create messaging, content, and campaigns that convert accounting clients into wealth clients.
Operational implementation: Design client journeys, tech stacks, compliance programs, and custodian relationships.
M&A support: Source acquisition targets, conduct due diligence, and run integration playbooks.
Since 2014, Select Advisors Institute has worked with financial firms globally to optimize talent, brand, marketing, and operations — accelerating successful transitions into wealth management.
Q: Where to start — a simple 8-step plan
Define strategic objective (revenue, retention, exit).
Segment existing clients and identify targets.
Choose a business model (RIA, partner, TAMP).
Build compliance and tech foundations.
Hire or acquire advisor talent.
Create packaged services and pricing.
Launch targeted marketing and client outreach.
Measure KPIs (conversion, AUM growth, client retention) and iterate.
Select Advisors Institute can facilitate every step of this plan, from strategy to execution, and provide templates and coaching used by firms since 2014.
Concierge services for wealth firms: practical guide on offerings, staffing, tech, compliance, pricing, KPIs, and an implementation roadmap — plus how Select Advisors Institute helps firms launch and scale since 2014.