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Why and How to Hire the Right Independent Financial Advisor for your SMB

Like we mentioned on a few occasions, running a small-to-medium business is a 24/7 kind of a job. It more or less becomes your life and there are innumerable things to keep in mind and juggle around. Of course, a huge part of it all will be your company’s finances. This will entail wages, income vs. expenses, retirement plans, contract negotiations, negotiations with suppliers, tax and insurance paperwork and so much more.

For someone who is struggling to keep their SMB afloat and who is dealing with numerous strictly business-oriented problems, keeping track of finances and making sure every financial decision is the right one can be quite difficult.

This brings us to the star of our article today – the independent financial advisor who will not be an employee of yours in the strictest sense of the word but who will still do work for you, making sure your SMB is being expertly handled from the financial standpoint.

How an IFA Helps You

There are innumerable things that an independent financial advisor can do for you and your company and, in the end, it will all depend on what you need from them.

For example, many SMBs need a financial helping hand in the earliest of days. Namely, a number of SMBs do not get structured and registered the right way and they suffer down the line. This is especially true if there are a few partners who are getting into the venture together and who are not quite sure how to get things rolling. An IFA will be the objective actor here, giving advice on what the best course of action is.

They will also ensure that you do not rush into things when handling other, more specific financial matters. For example, they will help you find the right insurance company and the right plan. They will also probably know some people who will handle your taxes in the best way possible. They are, basically, your protection against getting into bad deals and putting your SMB in danger.

Your independent financial advisor will also be able to take care of some more advanced financial dealings. For example, they might advise you on perhaps purchasing another business or partnering up with someone. They will put everything on paper and try to figure out whether this is something that would benefit your business from a purely financial standpoint.

They can also think of ways in which certain improvements that are a sizeable investment can actually be a great financial move. A great example of this are green home improvements that are made more alluring for SMBs through financing plans like PACE and other government-sponsored incentives.

How to Recognize the Right IFA for Your Company

Of course, in order to reap all the benefits of having an IFA work for you and your company, you should find someone who knows what they are doing and who fits well with your company.

The best place to start are your fellow SMB owners who might have used the services of an IFA themselves and who have someone to recommend. You can also check the local directories and websites where IFAs advertise their services.

When narrowing your search, you should look at the areas in which they are true experts. For instance, one IFA can be better at day-to-day financial dealings of an SMB while others might be more versed in investments and purchases.

You will also want to check their past track record and talk to people who hired their services in the past. It is also a good idea to try and discover whether they will be a good fit for you and your business philosophy. This is something that often gets overlooked

Closing Word

The business world has become so harsh for the SMB owners that they need all the help they can get. If you can afford it, finding a great independent financial advisor can turn out to be the best decision you have made for your SMB.

Does Your Business Need a Financial Adviser and Should You Outsource It

Calculating Taxes Up And DownFinancial advisers are financial experts with different types of academic background and education who specialize in helping people and businesses with their finances. Today, we will be talking about financial advisers and how they can help business owners with running their company.

The main reason business owners hire financial advisers is that they are often not that knowledgeable about finances themselves, especially when it comes to more complex practices and more comprehensive handling of the money.

Do you need a financial adviser?

Deciding whether your business needs a financial adviser is something that only you can determine. For instance, you should consider what you need done. For many jobs that you might think require a financial adviser, an accountant will do. Accountants are easier to find and they are usually cheaper than financial advisers. You should also take long, hard look at your business and determine whether you really have the money there that needs to be handled by an expert. If your business is not making enough and your profits are not really that great, you might not need a financial adviser.

What kind of financial adviser you need?

Another very important thing to consider is that there are various types of financial advisers that work with businesses. For instance, there are the Enrolled Agents, financial advisers that specialize in the matter of taxes, helping you save money and avoid any penalties. There are also Financial Analysts who mainly do investments and who can diversify your company’s portfolio. Life Underwriters specialize in insurance and they can save you a lot of time with their expertise. If you need someone who will handle a wide variety of choices, perhaps the best way to go is with a Financial Planner, the Swiss knife of the financial world.

How can they help you?

Depending on the needs of your company and the type of the financial adviser that you hired, there are many different things that they can do for you. For example, they can look at your retirement and insurance plans and give you some advice on how to improve them. Or, they can find ways to make your money work for you by investing some of the company’s assets into different stocks and markets. There are financial advisers who are tax-wizzes and who will ensure that you are never paying a cent more than you should for taxes, perhaps even getting some refunds. And this is just scratching the surface.

Should you outsource?

In the vast majority of cases, small to medium businesses outsource their financial advisers. Even if they do have their own accounting department, they rarely have the need or the means to hire a 24/7 financial adviser. You will find yourself that it is a much better idea to outsource a financial adviser for a number of reasons. For one, this will be much more affordable. Also, there are really not that many SMBs that need a financial adviser in-house. There is just need for that.

What should you look for in a financial adviser?

There are quite a few thing to look for when choosing a financial adviser. Like we mentioned earlier, you need to find the right type of the financial adviser. Then, you should look at their education and whether they have all the certificates and licenses. This will depend on the country. For example, in the United States, they have to be CFP-certified and in Australia they have to have passed the RG146 training. Of course, you will also want someone who has been successful in the past and whose past clients recommend.

Our final piece of advice is not to hire just anyone. If you are having troubles finding the right people for your financial advising needs, you might want to hire Globality Consulting and they will find you the perfect person for the job. That is why they are there.


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