The PFS designation adds value.

• Author: Minker, Marc J.
• Position: Personal financial specialist

Many practitioners have reported increasingly narrowed margins on traditional individual accounting services, such as write-up and tax preparation work. Further, intensified competition in the middle-to-upper-income client universe has begun to erode a typically core market for CPA services, especially with the advent of financial "supermarkets" that provide guidance and advice to clients "for free."

To increase and solidify their businesses, CPAs need to find new and value-added services to offer. Many practitioners are finding that one way is to become a personal financial specialist (PFS) and to add personal financial planning (PFP) to their existing practices.

Heretofore, many practitioners have been hesitant to enter into a new line of business, especially one that appeared to have some significant barriers to entry, such as technical training, software and regulatory compliance. But that has changed in recent years, as the cost of entering into the PFP business has decreased dramatically. Many practitioners may not be aware of the tools and resources available to them through the AICPA and their state societies, which can support their educational and practice implementation needs more effectively than in the past.

Studies have shown that clients continue to regard their accountants as their "most trusted advisors," which gives these practitioners (even new entrants into the PFP field) a significant competitive advantage; see, e.g., Mass-Mutual Financial Group, "American Family Business Survey," available at www.massmutual.com/mmfg/pdf/ afbs.pdf. Further, CPAs who currently provide tax and other personal services already possess many of the required skills to provide PFP services.

Core Competency

Whether practitioners know it or not, PFP is one of their core competencies, and the AICPA's PFS designation is the only PFP credential specifically designed for CPAs. The PFS credential not only designates CPAs who specialize in PFP, but it also signals to clients a higher level of skill and knowledge.

By becoming a PFS, a practitioner is joining other dedicated, passionate professionals with whom they can share ideas and experiences. Further, they can access the breadth of knowledge and tools that their professional association--the AICPA--has accumulated and makes available to members.

Extraordinary Benefits

One of the most often-cited reasons that CPAs have not previously entered into PFP is a lack of technical skills and training. Many...