Accounting & Finance

Top 4 Signs Your Small Business is Ready to Hire a Financial Advisor

Learn when to leverage the financial expertise of external professionals.

  • 4 min Read
  • December 8, 2023

Author

Escalon

Table of Contents

Most small business owners prefer handling their core business and all associated critical tasks. That could be for several reasons varying from lack of a designated team to lack of confidence in others. 

Sometimes, financial planning and investment management are your key strengths, and you prefer doing it yourself. But as the business grows, your financial situation becomes more complex. 

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To increase your business further, you need help optimizing your savings, taxes, financing strategies, and investment options. 

As growth and strategy require more thought, it is often best to bring in an outside professional to look after financial stability.

Here are four telltale signs that it’s time to partner with a financial advisor.

1. Seek operational support


As a business owner, you have your strengths and duties. However, you may need outside support to devise operational strategies to maintain profitability.

How a business financial advisor can help you:

  • Manage the cyclicality of operations to ensure sufficient cash flow.
  • Review your company’s financial statements and create a roadmap to improve profitability and drive efficient day-to-day processes. 
  • Identify your business’s unique challenges and opportunities to offer customized solutions.
  • Provide valuable insights into your organization’s financial health, enabling effective resource allocation and optimal decision-making.

2. Develop a retirement plan for your business


Establishing and installing an employee retirement plan involves reporting, compliance, and management requirements.

How a business financial advisor can help you:

  • Select a retirement plan that meets your small business’s and your employees’ needs.
  • Plan and manage the project’s many administrative burdens.
  • Mitigate any risk you might ensue.
  • Monitor the performance of your retirement benefits provider. 
  • Educate your employees on the benefits of participating in the plan and guide them to ensure they are on track to meet their retirement goals. 
Talk to us about how Escalon’s essential business services can help your firm access financial expertise. 

3. Risk management


Entrepreneurs face multiple risks, which are financial, environmental, reputational, political, and economic. Safeguarding against these potential challenges requires forethought and planning.

How a business financial advisor can help you:

  • Establish safety nets and mitigate the financial impact of risks with insurance coverage.
  • Utilize proactive risk management strategies, including contingency planning, diversification, or hedging techniques. 
  • Protect your organization’s financial stability and minimize the impact of adverse events.

4. Implement succession and estate planning strategies


Planning for the future, whether through succession or estate planning, involves complexities, requiring knowledge and experience with different laws.

How a business financial advisor can help you:

  • Create a comprehensive succession plan to safeguard the financial health of your business.
  • Map out structuring and financing options to facilitate the succession-driven exit transaction.
  • Create an effective estate plan to help transfer assets seamlessly to your heirs, preventing unnecessary conflicts.
  • Recommend and oversee tax-efficient gifting strategies for passing down assets or a business to your heirs.

The final word


Regardless of where you are in your entrepreneurial journey, partnering with a small business financial advisor is essential. They can provide knowledge and perspective to help propel your business to the next level.

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Want to know more about finance and accounting? Since 2006, Escalon has helped thousands of startups get off the ground with our back-office solutions for accounting, bookkeeping, taxes, HR, payroll, insurance, and recruiting — and we can help yours, too. Talk to an expert today. 

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.

Talk to our team today to learn how Escalon can help take your company to the next level.

  • Expertise you can trust

    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.

  • Scalability and Flexibility

    Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.

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