UpTrajectory Review

CPA Practice Advisor has published a piece by Isaac O'Bannon on a question every accountant eventually faces: when a client's problem stops being a tax or bookkeeping issue and becomes a legal one. The available text is thin — essentially a headline and a one-line description — but the framing is clear. The article addresses two distinct moves for CPAs: building reliable referral networks to attorneys, and, more provocatively, considering a law degree themselves to capture that work in-house. That second angle is the more interesting signal, because it reflects a real tension in the accounting profession right now.

For small-business owners, this matters directly. Most owners treat their CPA as their primary trusted advisor, and the line between accounting and legal questions is blurrier than ever. Entity structure decisions, contract disputes, payroll compliance, succession planning — these all sit in a gray zone where the CPA often spots the issue first but cannot legally advise on it. A CPA who has a vetted attorney network is genuinely more useful to a client than one who simply says 'you should talk to a lawyer.' The referral relationship is not just a professional courtesy; it is part of the service.

The suggestion that CPAs should consider getting a J.D. is worth examining with some skepticism. The JD/MBA or CPA/JD combination is not new — large firms and Big Four advisory practices have long valued dual-credentialed professionals. But for the typical CPA serving small-business clients, the cost and time of law school is substantial, and the ethics rules around practicing law without a bar admission in the relevant state remain a real constraint. What is more practical for most practitioners is deepening the referral relationship itself: reciprocal arrangements, shared client protocols, and clear boundaries about who handles what.

There is also a second-order effect worth noting. As accounting firms push into advisory services and away from pure compliance work, they are increasingly competing with law firms for the same client relationship. The AICPA and state bar associations have periodically clashed over scope-of-practice boundaries. A CPA who builds a strong attorney referral network is not just helping clients — they are also positioning themselves as the hub of a professional ecosystem, which has real business development value. The attorney who receives consistent referrals from a CPA is far more likely to send accounting work back the other way.

What to watch: whether more mid-size and boutique CPA firms begin formalizing these relationships through co-marketing agreements, joint client onboarding processes, or even structural arrangements like multidisciplinary practices where state rules permit. For small-business owners, the practical takeaway is to ask your CPA directly who they refer legal matters to and why. A well-connected CPA is a stronger advisor. For CPAs reading this, the O'Bannon piece is likely a useful prompt to audit your own referral network before a client's legal problem exposes the gaps.

“How CPAs can build better referral relationships and when to consider the J.D. themselves.” — CPA Practice Advisor

Takeaway: Ask your CPA who they refer legal matters to — a well-connected accountant is a stronger advisor than one who simply says 'talk to a lawyer.'