Accounting & Finance

Does my small business need a financial advisor?

A financial advisor is the compass that guides you through the complex terrain of financial planning.

  • 3 min Read
  • October 12, 2023

Author

Escalon

Table of Contents

Financial advisors are professionals (individuals or companies) who provide expert guidance to optimize a company’s financial affairs. They possess in-depth knowledge of economic principles, regulations, and strategies, which enables them to offer valuable insights and recommendations. The role of financial advisors encompasses a wide range of services, including financial planning, tax planning, risk management, investment management, retirement planning, and more. 

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There are different types of financial advisors, each specializing in various aspects of financial management. Some common types are certified public accountants (CPAs), bookkeepers, accountants, controllers, and chief financial officers (CFOs).

What are the benefits of hiring a financial advisor?


A financial advisor can provide the expertise and guidance necessary to navigate the financial challenges a business faces. These are four advantages of investing in a financial advisor:  

Specialized knowledge and expertise


A financial advisor brings in-depth knowledge and an understanding of financial management principles, industry-specific regulations, and other best practices. Their expertise can help businesses make informed decisions and optimize overall financial performance.

Objective financial analysis and advice


As an impartial third party, a financial advisor can provide an unbiased analysis of a company’s financial situation and offer tailored advice to address any shortcomings or areas for improvement.

Time and resource savings


Outsourcing financial management to a professional firm allows small businesses to focus on core business activities. By delegating financial tasks to a competent advisor, they can save valuable time and money in the long term and redirect resources to areas they are most needed with the consultant’s help.

Talk to us about how Escalon’s FinOps can help your firm access financial expertise. 

Improved financial decision-making


With a financial advisor, small business owners can access valuable insights and strategies to enhance their decision-making process. This professional can assist in evaluating investment opportunities, financing options, and risk management strategies.

Should you consider hiring a financial advisor for your small business?


Several indicators suggest that your small business could benefit from the expertise of a financial advisor. Suppose you struggle with financial complexities, require assistance with financing and investment decisions, go through growth or expansion pains, or face regulatory compliance challenges. It may be time to consider hiring a financial advisor.

However, you must evaluate your company’s financial needs before hiring a financial advisor. Consider your current financial situation, including your cash flow, debt obligations (or accounts payable), and revenue streams. Identify specific financial goals and challenges you face. This assessment will help you determine the level of assistance required from a financial advisor and how to put aside money towards paying for their services.

Want to know more? In addition to taxes, accounting, bookkeeping and CFO services through its FinOps, Escalon’s Essential Business Services include PeopleOps (HR, benefits, recruiting and payroll) and Risk (business insurance). Talk to an expert today.

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This material has been prepared for informational purposes only. Escalon and its affiliates are not providing tax, legal or accounting advice in this article. If you would like to engage with Escalon, please contact us here.

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    Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.

  • Quality and consistency

    Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.

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