You are highly talented in your field and unafraid of serious hard work. So you’ve decided to pursue your lifelong dream and launch a business of your own.
Most people just do the accounting themselves and that’s not always a good idea. If you are busy, you could easily overlook things like money in the wrong account or payments that were not made. It is best to leave it up to the professional to ensure everything is done properly. A financial advisor can help your business in a number of ways. First, they can work to get you off of any debt that you might have and make sure that you’re getting the best rates for your loans. They can also provide cost effective accounting and bookkeeping services for businesses.
Competent, confident, and seemingly able to do it all, you don many hats for your business: you handle after-hours customer service calls, come in on Saturday mornings to receive shipments, and interview and train all new employees, all while providing your clients with top-notch service in your area of expertise. One of the best things about getting help from a financial advisor is that it allows you to take control of your business path. Read https://business-insolvency-company.co.uk/what-is-a-phoenix-company/ for more useful information like this one.
That doesn’t leave much time for spotting bookkeeping errors, choosing the best retirement plan, conducting profit-loss analysis, or scrutinizing cash flow. What’s more, your enthusiasm could have you viewing your business plan through overly optimistic, rose-colored glasses and setting unattainable goals.
A financial advisor can help you with the money side of your business. Specializing in the complex details of business finances, a financial advisor can help you save time and money, maximize the success of your business, and help you focus on doing what you do best.
Here are 9 reasons why a financial advisor can help your business.
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1. Help you manage debt
The average American owes $52,490. Outstanding debt can limit your ability to raise money and can reduce your capacity to invest in your business or to pay employees competitive salaries.
A financial advisor can help you make informed, wise decisions regarding how to balance the management of your debt with your business contributions.
2. Help you secure funds
Financial advisors are often knowledgeable about the best way to raise the necessary money to get your business up and running. They also have often cultivated professional relationships with many potential sources of funds such as banks and other lenders, and are versed in the best way for your business to structure any investments or loans.
3. Objectively examine your business plan
Passionate and excited, business owners have big dreams. This energy and drive is an asset when it comes to working the long hours required of jack-of-all-trade business owners.
But that same passion and enthusiasm can also cloud one’s ability to create an appropriately realistic business plan. A financial advisor can offer an objective look at your business plan and evaluate whether it is financially feasible, and can suggest changes if it isn’t.
4. Free you to do what you do best
Your talent and skill in your field inspired you to launch your business. But as a business owner, you now find yourself heading virtually every department of your business, from customer service to installations, from receiving shipments to managing your marketing efforts. You’re busy!
Meanwhile, your business will not operate without money, and managing the financial side of things can easily be a full-time job of its own. Sometimes it can simply be impossible to keep an appropriately keen eye on your business finances while effectively managing your business operations.
A financial advisor can use their expertise to quickly and competently help you keep your business finances operable. To put it bluntly, a financial advisor can often monitor your finances more quickly and more effectively than you can, saving you copious amounts of time to focus on keeping your customers coming back for more.
When you let financial advisors do what they do best, you’re free to do what you do best. By delegating in this complex area, you can spend your time running your business instead of researching infinite finance details.
Working with a financial advisor won’t just free up your time for day-to-day operations. It can also help you prevent or catch business-closing money mishaps.
Financial advisors can help you watch out for poor bookkeeping. They can spot crippling cash flow problems like paying vendors before you receive customer payments. They can help you identify unprofitable business decisions.
5. Identify ways to save
Financial advisors have a knack for identifying ways to cut costs. Maybe you are offering two services, and one is profitable while the other is discreetly draining your business; sometimes these crucial details aren’t visible to the untrained eye.
Financial advisors can analyze the market and make accurate projections to help you determine which path you should take with your business, or find ways to save on taxes.
6. Free up funds to invest in your business
When your financial advisor helps you save money, you have more funds available to pour back into the business. This might enable you to hire more employees, explore new marketing approaches, or give your employees a raise.
Employee retention strategies such as salary increases can be a savvy investment. Employee turnover is costly. When you lose good workers, you are forced to spend time and money on recruiting, interviewing, hiring, and training new employees. This can zap you of time and money. A financial advisor can help you weigh the costs and benefits of increasing wages.
7. Steer you through taxes
A financial advisor can help you navigate taxes. An expert can look for ways to reduce your taxes, avoid unexpected tax increases from investments that initially seemed wise, or adjust your tax withholding, all to the benefit of the business.
8. Help you plan for the future
When you work for someone else, you often have a retirement plan selected for you. Not so when you are self-employed. As a business owner, you need to find the right retirement plan for you and your employees. A financial advisor can help you with making this important decision for your future.
Furthermore, your financial advisor can help you offer your employees a quality retirement plan that can help you keep them around, and as covered above, employee retention is both a time and money saver.
9. Help you pass it on
When the time comes for you to think about retiring, you may want your business to live on. Perhaps you hope to pass it down the family line, or maybe you will sell. A financial advisor can facilitate the process of transferring ownership when the time comes.
Delegate – so you can do what you do best
You’re an expert in your field, and you’re pretty savvy at multitasking. You know the ins and outs of your trade, you’ve honed a phenomenal sales pitch, you handle after-hours customer care and before-hours shipping receipts. Sure, you can do it all.
But there are some things in life that are better suited for outsourcing to the experts.
The fate of your business depends on effective, wise financial decision-making. Bring in a financial advisor. They can do what they do best so that you can do what you do best.
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