The responsibilities of accountants, financial planners and lawyers often overlap. When these parties work together, the results can be harmonious. You can rest assured that you’re receiving thorough, well-researched advice concerning your tax, financial and legal affairs. However, if these parties aren’t communicating, you or your business could suffer. Overlooked tax implications or issues with your estate are just some of the problems that could arise. Communication between everyone who has a hand in your financial affairs is crucial.
Why communication breakdowns occur
It takes time for parties to reach out to one another. This is especially true if the members of your financial team are employed by different firms. Your financial advisor may shift some assets but fail to inform your attorney. Had your attorney known, they would’ve recommended updating your estate plan. The shifting of assets might have tax implications. You might miss out on an important deduction if no one has informed your accountant.
It’s easy to see how communication breakdowns can have a ripple effect. However, you can take some proactive steps to ensure better communication between your financial team.