Why Veterinarians Need Their CPA and Financial Planner Working Together

By Daniel Rivet, CFP® and Michael Fogarty, CFP®

Veterinarians typically have to wrestle with complex financial issues. High income, tax management concerns, heavy student debt, multiple compensation structures, ownership opportunities, and variable cash flow create a personal economic profile that’s far more complicated than most professions. Yet many veterinarians unknowingly rely on an incomplete or fragmented advisory team — a CPA who handles taxes and a financial planner who manages investments — with little or no communication between them.  That disconnect is one of the biggest reasons veterinarians overpay taxes year after year.

Tax efficiency isn’t about having smart professionals.  It’s about having professionals who coordinate.

Why Veterinary Finances Are Uniquely Complex

Veterinary professionals often have multiple sources of revenue simultaneously:

• W-2 associate income

• Production bonuses

• 1099 income (relief work, research, speaking, consulting)

• Partnership distributions

• Practice ownership profits

• Equipment purchases

• Student loan repayment strategies

Each source affects taxes differently. Without coordinated planning, decisions in one area can unintentionally create problems in another.  For example: a decision that lowers this year’s taxes might increase long-term taxes or reduce loan forgiveness eligibility.

What Your CPA Sees vs What Your Financial Planner Sees

Both professionals are essential. If you haven’t engaged a CPA and a financial planner, then you have committed yourself to acquiring these professional skill sets on your own.  You might be able to acquire the knowledge that you need, but how much time will you spend learning, and staying current, in this endeavor?  And how can you acquire the nuance, context, and balance to understand the opportunities and pitfalls of different strategies?

CPAs and financial planners typically see different slices of your financial life.

Your CPA focuses on:

• Filing accurate returns

• Compliance with tax law

• Deduction optimization

• Historical numbers

Your financial planner focuses on:

• Long-term wealth strategy

• Investment positioning

• Retirement projections

• Cash flow design

• Managing behavioral biases that affect financial decisions

If your advisors aren’t collaborating, neither professional has the full context needed to optimize your financial decisions.

Where Lack of Coordination Costs Veterinarians the Most

The biggest tax savings opportunities for veterinarians typically occur when decisions are coordinated across time — not when they’re made in isolation.  Common missed opportunities include:

• Retirement Contributions That Don’t Match Income Strategy

A veterinarian may max out retirement contributions based on CPA advice, while a planner might know that income volatility or a planned practice buy-in makes that ill-timed.

• Investment Moves That Trigger Avoidable Taxes

Portfolio rebalancing without tax coordination can create capital gains that could have been offset with loss harvesting.

• Entity Structure Mistakes for Practice Owners

Choosing the wrong entity or compensation structure can lead to unnecessary self-employment taxes or missed retirement opportunities

• Student Loan Strategy Conflicts

Certain tax moves can unintentionally increase required payments or reduce  eligibility for forgiveness.

What Coordinated Planning Looks Like for a Veterinarian

True coordination isn’t complicated — but it is intentional.

A properly aligned planning team typically:

• Runs tax projections mid-year

• Reviews income and deductions before year-end

• Communicates before major financial decisions

• Aligns compensation strategy with long-term goals

• Evaluates practice purchases alongside tax strategy

Instead of reacting to last year’s numbers, the team plans around next year’s opportunities.

Why March Is Often Too Late

Many veterinarians first talk seriously about taxes when their CPA requests documents in late winter.  At that point, most meaningful planning options are already gone.

Strategies that should/must happen before December 31 include:

• Income timing decisions

• Equipment purchases

• Certain Retirement plan contributions

• Entity elections

• Bonus deferrals

• Loss harvesting

Waiting until tax season means your CPA is limited to reporting what already happened instead of helping shape what could happen.

Real-World Example:

Uncoordinated Approach

• CPA files taxes annually

• Planner manages investments

• No communication

• Strategy is reactive

  
  

Coordinated Approach

• CPA + planner meet mid-year

• Income is timed strategically

• Retirement contributions optimized

• Investments managed tax-efficiently

• Strategy is proactive

Over a 20-25 year career span, the difference between these approaches can be substantial — not just in taxes saved, but in net worth accumulated.

Signs Your Financial Team Isn’t Coordinated

You may benefit from a strategy review if:

• Your CPA and planner have never spoken

• You only discuss taxes once per year

• You don’t run projections before major purchases

• Your tax bill surprises you each year

• No one is responsible for long-term tax strategy

Many veterinarians assume someone is handling coordination — when in reality, no one is.

Who Should Coordinate Your Strategy?

While CPAs are tax experts, long-term tax strategy typically requires broader financial context:

• investment planning

• retirement strategy

• practice ownership goals

• insurance planning

• debt management

Because financial planners oversee these interconnected areas, they’re often best positioned to coordinate planning while collaborating closely with the CPA for technical execution.

The Long-Term Advantage

The real benefit of coordinated planning isn’t one year of tax savings.  It’s a lifetime of optimized decisions.  Veterinarians who use coordinated teams often experience:

• Lower lifetime tax burden

• Stronger retirement outcomes

• More predictable cash flow

• Greater financial flexibility

• Smoother practice transitions

Small improvements compounded annually can produce dramatic long-term results.

Final Thought

Veterinarians spend years mastering medicine.  But financial optimization requires a different kind of expertise — and a team approach.  If you’re unsure whether your current advisors are coordinating your tax strategy, a veterinary-focused financial review can identify missed opportunities and planning gaps — often within a single conversation.

For a copy of our Financial Coordination Review please contact Daniel Rivet, CFP® by email at drivet@foundryadvisors.com.