Coordinating your CPA and financial advisor on equity compensation
Equity compensation sits between tax and financial planning. A CPA handles the tax treatment and filing; a financial advisor, if you use one, looks at how equity fits your goals. Problems appear when each works from different information.
Who typically does what
CPAs calculate tax on vests, exercises and sales, plan estimated payments and prepare returns. Advisors look at concentration, cash needs and how equity fits savings and investment goals. Some professionals do both.
Share one set of records
Give both the same grant documents, vest schedule and transaction confirmations. A shared folder updated after each event keeps everyone current and avoids each professional asking you for the same documents separately.
Agree on the sequence
Before a major event, it helps if the tax estimate comes first, so any planning conversation starts from realistic after-tax numbers rather than the gross value shown in your equity portal.
What to check
- Who models taxes on equity events
- Whether both have the same records
- How often they talk, if at all
- Who you call before an event
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Frequently asked questions
Do I need both a CPA and an advisor?
Not always. It depends on complexity and preference. Many people with significant equity use a CPA at minimum because of the tax reporting.
Is this equity compensation guide advice?
No. Sam's List writes these guides for education. They describe common questions and processes, not advice for your specific situation.
Sam's List is a directory. Listing or paid status does not imply endorsement or ranking.