CPAs target seniors' financial needs with services

The aging of America offers opportunities to businesses that recognize the need for services slanted toward senior citizens, particularly the older senior citizen. As of January 1997, the American Institute of Certified Public Accountants identified those "ElderCare Services" as an emerging practice area for CPAs.

Not only is ElderCare Services a potentially lucrative market for CPAs, but CPAs can offer much needed help to the elderly and their caregivers. It appears to be a win-win solution.

But why opt for a CPA to do the job? As Don G. Smillie, CPA, pointed out in an interview with the Springfield Business Journal, CPAs have the reputation of being trustworthy. AICPA literature mentions CPAs are viewed as having "independence, objectivity and integrity."

"We are bound by the same code of ethics on ElderCare Services as on any other professional engagement like a tax return or audit," Smillie said.

Many CPA firms already performed many of the services now listed by the AICPA as ElderCare, only not under that label.

For instance, Baird, Kurtz & Dobson's WealthPlan "is a service delivered by a team of professionals with varying specializations. The WealthPlan solution provides clients with personal wealth strategies, investment advice, insurance solutions, estate planning, retirement services and tax tactics. Professionals from our subsidiary, BKD Investment Advisors LLC, provide the investment management and advisory services component. Many things the AICPA listed as CPA ElderCare Services fall within BKD's WealthPlan. Many of these services we've delivered for years, but only recently have we bundled the services as a branded solution," said John Wanamaker, partner and director of the management consulting services department, BKD southern Missouri practice.

"The profession is now formalizing those services that have probably been provided for years by accountants," Smillie said.

For about the past five years, he said his firm has focused more seriously on the need to provide such services.

"There are a total of 55 CPA firms offering CPA ElderCare Services in Missouri. Nationwide, there are approximately 3,500 CPAs involved in CPA ElderCare Services," said Ann Sammon, AICPA ElderCare team leader.

According to the AICPA, average monthly fees are $300 to $1,500 per client for a CPA's eldercare services on what services are provided.

"Fees are hourly, flat or whatever agreement you make after meeting with the family. It's kind of like a menu at a restaurant, the more items you pick off the menu, the larger the bill," Smillie said.

According to him, Springfield CPA rates are from $60 to $200 per hour, but some of the services could be performed by clerical staff at a lower rate.

In return, the client and family members are assured that certain services will be carried out according to their wishes to help the senior citizen live a higher quality life as independently as possible.

Direct, assurance and consulting services are the three kinds of ElderCare Services as designated by AICPA. Direct services include financial services such as controlling checkbooks to protect vulnerable elderly from con artists, as well as non-financial services such as visiting the elderly person and reporting to adult children who may live far away. Assurance services include making sure contractors do what they are supposed to do. Consulting might include planning for housing needs or for declining competency, evaluating financing options, acting as a mediator in family disputes, and coordinating support and healthcare services.

"We sit down with adult children and their parents or the care group and go through a questionnaire. Each individual situation is different. We evaluate each one and see if what they are asking is reasonable," Smillie said. "From that consultation comes a list of things to do and how to do them a care plan."

The CPA providing ElderCare Services acts as a facilitator or the hub of a wheel.

"ElderCare Services are best done as a team approach. For example, the aging parent needs a will, insurance re-evaluation and medical care. We, as the CPAs, would say, OK, let's get them an attorney, an insurance professional and a geriatrician to provide medical input.' We bring those necessary professionals into the equation in order to address the perceived need by the family or the elderly person," Smillie said.

"I can tell you which nursing homes are in the Springfield area, and I can tell you the staff ratio of most of the nursing homes. We (CPAs) are in a position to have access to information," Smillie added.

Smillie's firm has performed such tasks as faxing grocery orders, ordering prescription drugs over the internet, and protecting clients from being taken advantage of.

"An elderly client called us. She had someone do a plumbing service, was unhappy with the job and had a sizeable bill. We called the company and said we're the CPA and told them we wanted them to explain the bill. They quickly got more agreeable when they found the elderly lady had someone behind her. They reduced the bill and went out and fixed the job," said Smillie.

The need for ElderCare Services is out there. But will the number of CPAs opting to offer ElderCare Services, as the AICPA defines it, increase?

"It's going to be a question of who can afford it as to whether it's going to take off as a practice of regular accounting. Trust companies have been doing this for years, but that's typically been with the wealthier clients. I think with our aging population, this is becoming more necessary," Smillie said.