Money

Can a CPA Be A Fiduciary

We're putting together an editorial staff that reflects our broad audience and their various financial circumstances. We value and encourage the experiences and perspectives that help us connect with our readers, answer their questions, and win their trust. Please read our disclosure for more information.
Updated on July 21, 2022 by
Can a CPA Be A Fiduciary

CommonCentsMom.com is advertiser-supported: we may earn compensation from the products and offers mentioned in this article. However, any expressed opinions are our own and aren't influenced by compensation. The contents of the CommonCentsMom.com website, such as text, graphics, images, and other material contained on this site (“Content”) are for informational purposes only. The Content is not intended to be a substitute for professional financial or legal advice. Always seek the advice of your Financial Advisor, CPA and Lawyer with any questions you may have regarding your situation. Never disregard professional advice or delay in seeking it because of something you have read on this website!

Some accountants have become reluctant to act as fiduciaries and some have even made changes in their roles in order to avoid being held responsible for violating the law and regulations regarding fiduciary duties. However, there is no need for accountants to worry because they can act as fiduciaries without breaking any laws or regulations.

There is no such thing as a “fiduciary” relationship between an accountant and his or her client in which the accountant is required to act solely in the best interest of his or her client. There is no legal duty that an accountant must perform in order to maintain his or her license.

Provide Advice for Clients

However, some states do require that an accountant act with due care when providing advice on financial matters, but there is no requirement that he or she must be completely unbiased in the advice that he or she provides. Therefore, accountants can act as fiduciaries without violating any laws or regulations.

The definition of a fiduciary is “a person who has a duty to act solely in the best interest of another person.” An accountant has no such duty to his or her client, so he or she cannot be considered a fiduciary by the law.

In fact, there is no such thing as a “fiduciary” relationship between an accountant and his or her client because an accountant does not have any legal duty to act in the best interest of his or her client. However, accountants can still be considered fiduciaries if they follow their profession’s rules and standards when providing advice on financial matters.

What CPA Can Do As Fiduciaries?

Accountants can act as fiduciaries if they follow their profession’s rules and standards when providing advice on financial matters. There are many things that accountants can do as fiduciaries including: ensuring that clients understand the purpose of each item on their tax returns; taking proper steps to prevent clients from being defrauded; maintaining accurate records of their services; informing clients of the fees and expenses that they will be charged for their services; and providing clients with clear, written, and complete information regarding the services that they are providing.

Accountants can also act as fiduciaries if they follow their profession’s rules and standards when providing advice on financial matters. There are many things that accountants can do as fiduciaries including: ensuring that clients understand the purpose of each item on their tax returns; taking proper steps to prevent clients from being defrauded; maintaining accurate records of their services; informing clients of the fees and expenses that they will be charged for their services; and providing clients with clear, written, and complete information regarding the services that they are providing.

What CPA Cannot Do As Fiduciaries?

Accountants cannot act as fiduciaries if they perform a variety of duties such as: advising on tax matters without an accountant being present during the meeting in which he or she is giving advice; advising on tax matters when he or she is not an expert in taxes; giving advice to his or her client regarding investments in which he or she has no expertise.

(Visited 188 times, 1 visits today)

🏔 Read Next 🏔

Best Side Hustles of 2023

The 27 highest paying side hustles you can start today.

View article ➞

The Common Cents Mom Newsletter

Join thousands of curious consumers getting the inside scoop.