Cracking the CPA Referral Code

By Michelle R. Donovan

I’ve been coaching financial advisors for more than two decades and some things haven’t changed. To this day, many advisors who come to me still struggle with building reciprocal relationships with CPAs that are meaningful, consistent, and financially successful—wondering why they can’t move the needle. Do you remember the saying, “If nothing changes, nothing changes?” That’s exactly what’s happening in this case. Advisors have been doing the same thing over and over with CPAs expecting different results and that doesn’t work. I never claim to have all the answers. That said, I do know some great best practices that perhaps could change the way you think about your CPA relationships and how you can modify your behavior to inspire better outcomes.

Establish Relationship Expectations

Rarely do I find a firm or financial advisor who has given enough thought to the characteristics they really want in their CPAs beyond a title. It’s important for you to be clear on what you need from this relationship to find a perfect match from the start. Being clear on what you need and on what you expect from the relationship will help you avoid frustration.

Sharing your expectations upfront provides you with the opportunity to say, “I take my referral process and my relationships with CPAs seriously. This is what I’m looking for from our relationship and this is what I’m also willing to do for you in return. Does this sound like something that would work for you?” You also can extend the conversation further to encourage the CPA to add anything additional they feel is important as well. Before you know it, you’ve had a much deeper conversation about what this relationship is going to be like than you ever had before. This conversation becomes the foundation upon which you build the relationship and also gives you a focal point to use in the future as you evaluate your relationship throughout the year.

Enhance Your Communication

I’ve often found good, proactive, ongoing communication is the missing link with CPA relationships. Establishing expectations, as mentioned, is a wonderful start but it can’t end there. Ongoing communication throughout the year is key. If you’re wondering why you don’t receive referrals from CPAs, perhaps it’s because you’re not top of mind. Staying top of mind boils down to being visible and bringing value to the relationship.

Meeting with your CPA colleague a few times a year is simply not going to cut it. Change that behavior and schedule to meet with them at least every other month. Meeting once a month for lunch is even better. I can hear some of you saying, once a month? That could never happen. Yes, it can and yes, it does. If you value the relationship enough and you desire reciprocity, it will become a priority. Remember, if it’s not you building this relationship, it’s likely someone else. Meeting consistently tightens the bond, provides you with a platform to discuss referral opportunities, keeps you top of mind, and demonstrates your commitment to the relationship.

Other ways to enhance your communication and bring value include connecting with the CPA on LinkedIn. Include them in your newsletter, podcast, or webinar mailing lists. Invite them to firm social events. Collaborate with them on sponsorships. Invite them to attend networking events with you as your guest or as a networking partner. Spotlight them in your publications. Display their promotional material in your office. Include them as a guest on your podcast or webinar. This list is endless. The bottom line is to maintain your communication and interaction throughout the year and schedule time to check in to evaluate how the relationship is working.

Make It Easy For CPAs to Refer You

CPAs are busy, just like you. During tax season, the heat turns up just when they’re standing in the middle of a referral rainstorm. And all you want more than anything is to capture some of these referral opportunities. You stand a greater chance of receiving those referrals if, and only if, you make it easy for them to refer you during their busy season.

The first thing to do is to be sure to meet with the CPA in January and/or February. During this meeting, your goal is to give them one or two things to notice when they’re reviewing tax returns that should bring you to mind. More than one or two things is too much for a busy CPA. Keeping it simple, you could ask them to notice if the person has three or more accounts. Or if the person has property tax from a second home. Then tell the CPA, “If you notice either of these two things, ask them one question. Who do you have helping you with your finances other than me?”

I helped one advisor ask her CPAs to call her directly while their client was present so they could immediately schedule a follow-up meeting. The advisor wanted to avoid the endless game of phone tag and the CPA wanted her clients to meet with the advisor as soon as possible. Because of the conversation, this became a regular occurrence. You might find it helpful for a CPA to get permission for you to call or send an email introduction on the spot, copying the client.

The general rule of thumb is, if you make it easy for CPAs (and others) to refer you, they are more likely to do so.

Remove the Threat

Advisors have shared with me that at times, they feel like a CPA perceives them as a threat to their practice. If a CPA has decided to add the service of offering financial advice in any way, they may indeed feel they could lose revenue by referring their clients to you. In some cases, the relationship may no longer be one that meets your expectations. But in other cases, you may be able to present a creative solution.

Many financial firms are removing the threat by creating a more collaborative relationship where both parties gain financially. Some advisors have gone so far as to bring a CPA into their firm as a permanent addition to the team, providing their clients with a comprehensive financial experience. Other advisors have created a revenue share opportunity with the CPA and develop exclusivity with respect to reciprocity.

Removing the threat doesn’t always need to be complicated. Consider positioning your relationship with the CPA as a trusted component to your practice. Include their information and services seamlessly with yours when meeting with prospects (ensuring the CPA is doing the same). Act as if you are joined at the hip, providing each other with additional services to offer your collective clients. It’s a trifecta win for you, the CPA, and your clients without the need for fancy details or any perceived threats.

As you move through 2025 with sights set on a productive year, remember that saying, “If nothing changes, nothing changes.” Take a hard look at your CPA relationships and ask yourself four hard questions:

1. Do my CPAs understand the expectations of our relationship?
2. How can I enhance communication with my CPAs?
3. Do I make it easy for my CPAs to refer me?
4. What can I do to remove any or all elements of being a threat? 

Change what needs to be changed to make a positive impact on your relationships. If you need help, reach out for a conversation.

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Michelle R. Donovan is a referral/business coach for financial advisors and firms looking to significantly improve their referrals and leverage their relationships. She is the bestselling author of The 29% Solution. You can reach Michelle at Michelle@ProductivityUncorked.com.

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