Consulting with a business financial advisor is one of the smartest actions a small business owner can make to safeguard the future of their company. Each year, more and more businesses make the money-savvy decision to meet with a financial advisor to receive advice and strategies for everything from tax preparation to their overall business stability. Today, an estimated 40 percent of small business owners have consulted with a financial consulting team. Learn more about the operational and fiscal impact of financial consulting for small businesses.
Why Businesses Need Financial Consultants
The financial decisions that your business makes now can impact your company for years to come. As the owner or head of the HR department, it is your responsibility to help make wise choices that will help your business meet its unique goals and objectives. While hiring a financial consulting firm to assist with the various fiscal and operational aspects of your company is an investment, the results are generally well worth the cost. As you develop a relationship with your advisor, you can gain a better understanding of your financial state while finding solutions to problems that could affect the profitability of your business.
When you run your own business, it is crucial to keep track of every dollar that goes in and out. Having a qualified accountant on staff can be highly useful to establish that your financial records are accurate and that taxes are paid correctly and on time. Unfortunately, many small businesses do not have the funds necessary to keep an accountant on the payroll. An experienced financial consultant can step in as your source for accounting information. A financial consultant can provide details on the latest tax laws, regulations, and deadlines which can save you both time and stress.
A financial consulting firm can also assist you in tax preparation. Like a good accountant, a reputable financial consultant will understand how to save you money and counsel you on tax-efficient ways to operate your business successfully. Knowing what you can and cannot claim for expenses and how to use deductions to your advantage can make a major impact on your tax liability. Your consultant can also encourage you to stay current with your paperwork and bills to avoid late penalty fines. Tax penalties can be substantial and you want to avoid additional charges whenever possible.
By maintaining a close relationship with a financial consulting firm, you can seek assistance whenever unique circumstances may occur. Maybe you need assistance with the sale of a business and need a financial consultant to guide you through the process. Or perhaps you are a mid-market company that is making an acquisition and need advisement from an experienced consultant familiar in this area. With a financial consultant on speed dial, you can make a more informed decision. Financial consultants can also provide risk management services to protect your company’s future and offer strategies to improve your company’s overall operations.
Seeking financial consulting services is especially beneficial when it comes to more complicated money matters such as business investments. If you have employees working for you, you may be considering retirement options. A financial consultant can provide retirement fund management for businesses of all sizes. Developing an attractive benefits package with a retirement plan is a suitable way to attract talented job candidates and maintain your existing staff. A financial consultant can help you review your various retirement plan options, including 401(K)s, profit sharing plans, tax deferred annuities, 529 college savings plans, and deferred compensation plans.
No matter how successful your small business is, you need to continually think about your future. While some people believe that a financial consultant is an unnecessary expense for businesses, most understand the very real benefits that a consulting firm can provide. Having an investment and money management professional on call can help your business grow faster than you ever thought possible. Financial consultants can offer advice on a wide range of issues, such as:
- Employee benefits programs
- Managing taxable income
- Choosing the right types of insurance
- Determining business valuation
- Setting up employee retirement plans
- Making smart investments
Contact a Financial Consulting Firm
Small business owners take on a lot of roles within their company. Over time, this amount of responsibility can take its toll. When it comes to your business’s finances, it is better to leave this task in the hands of an experienced professional. Using professional financial consulting services allows small business owners to continue growing their company while gaining the invaluable advice and experience from a professional in the field. For more information about the impact of financial consulting for small businesses or to acquire consulting services, contact the financial consultants at Incisive Financial Group today.