A CPA is a licensed accountant: they prepare tax returns, keep or review books, and represent you before the IRS. A financial advisor plans how you save, invest, insure and spend, and often manages the investments. If your finances have any real complexity, you probably want both, and they do different work. In NATP’s 2025 fee study, CPAs charged an average of $280 for a basic Form 1040. Fee-only advisors in the public graph charge a median $4,500 a year for ongoing planning.
The two can overlap in one person. Of the 24,501 fee-only advisors in the public graph, 250 list a CPA, 74 list CPA/PFS and 355 list the PFS, the AICPA’s planning credential for CPAs.
The two side by side
| CPA | Financial advisor | |
|---|---|---|
| What it is | A state licence in accounting | A job title, not a licence |
| Licensed by | A state board of accountancy | Investment advice needs SEC or state registration |
| Main work | Tax returns, accounting, audits, IRS representation | Financial plans, investment management, retirement income |
| Looks at | Mostly last year and this year | The next 5, 10 or 30 years |
| IRS representation | Unlimited | Only if they also hold a CPA, EA or law licence |
| Typical price | $280 average for a basic 1040, more for schedules | $4,500 a year median, or $2,000 for a one-time plan |
| Check it at | CPAverify or your state board | adviserinfo.sec.gov |
“Financial advisor” isn’t a protected title in the US, so the label tells you little. Our guide to financial planner vs financial advisor explains which registrations actually matter.
What a CPA does that an advisor can’t
Represent you before the IRS. The IRS gives CPAs, attorneys and enrolled agents unlimited representation rights: any taxpayer, any tax matter, any IRS office. An advisor without one of those credentials can’t stand in for you in an audit.
Audits and reviews of financial statements. If a lender or investor asks for audited or reviewed statements for your business, state accountancy laws reserve that work for CPAs in licensed firms. Tennessee’s board, for example, says only CPAs working within a licensed CPA firm can provide attest services.
Books and business returns. Entity choice, payroll, partnership and S corporation returns are a CPA’s home ground. Our guide for small business owners covers where the planner fits in.
What an advisor does that a CPA usually doesn’t
Manage investments. Federal law excludes an accountant from the definition of investment adviser only when their advice is “solely incidental” to accounting. A CPA who manages your portfolio or charges for investment advice generally has to register, like any other adviser. Some CPA firms do this through a separate registered advisory firm, so check which entity you’d be hiring.
Plan the long run. When to retire, how much to spend, when to claim Social Security, how to pay for college, how much insurance you need. A tax return records what happened; a plan decides what happens next.
Act as a fiduciary on your investments. A registered investment adviser owes you a fiduciary duty for the whole advisory relationship. Our guide to whether your advisor is a fiduciary explains how to tell.
When each is the better choice
A CPA on their own is enough when your question is about tax compliance: getting returns right, a business’s books, an IRS letter, or a state tax problem. If returns are your main need, our guide to enrolled agents vs CPAs compares the two licences that can represent you.
A financial advisor on their own fits when your taxes are simple and your questions are about saving, investing and retiring. You can use software or a preparer for the return.
Both, working together, is the usual answer once you have a business, rental property, equity pay, large retirement accounts or a sale coming. The advisor proposes a move, such as a Roth conversion or selling a concentrated stock over three years, and the CPA confirms the tax effect and files it. Our guide to tax preparers vs tax planners explains why the planning has to happen before the year ends.
One person who does both is a CPA who also holds the PFS or CFP, or a planning firm with tax staff. It’s convenient. Ask whether the tax return is included in the planning fee or billed separately.
What each costs
CPAs. In NATP’s 2025 fee study, CPAs who charge a minimum fee plus complexity charged an average of $280 for a Form 1040 with Schedules 1 to 3, with a typical range of $200 to $425. Itemized deductions (Schedule A) added an average of $65 and investment sales (Schedule D) $75. A business or rental return costs more.
Fee-only advisors. Those who publish prices charge a median $300 an hour, $2,000 for a one-time plan (middle half $845 to $3,600) and $4,500 a year for ongoing planning. Firms that charge a percentage of assets have a median first-tier rate of 1%. Our guide to what a financial advisor costs has the full picture.
Neither is deductible on a personal return. Tax preparation and investment advice fees were miscellaneous itemized deductions, suspended since 2018. The tax law signed in July 2025 made the suspension permanent.
How to check each one
A CPA. Search CPAverify, NASBA’s free national lookup, or your state board of accountancy’s licence search. For a PFS, check the AICPA’s member directories. Our glossary entry on the CPA covers what the licence requires.
A financial advisor. Search the person and firm on the SEC’s adviser search, read the firm’s Form ADV for how it’s paid, and confirm any credential with its issuer. Our guide to checking a financial advisor covers every database.
A CPA who manages money. Do both checks. A CPA licence doesn’t register anyone to manage investments, so the firm should appear on the SEC’s adviser search. For more on how the CPA compares with the CFP and CFA, see CFP vs CFA vs CPA. To find planners who focus on tax, start with tax planning advisors.