When it comes to running a business, you have to take extra care and attention to your finances. If you have no experience in handling them – or you have no interest in taking on this task – you may well want to look at getting a financial advisor. Not all businesses need one so it’s up to you to determine whether it’s right for you and your circumstances.
Need a little help to decide your situation? We’re going to delve deeper into the pros and cons of having a financial advisor to help you decide the right path for you.
Regardless of your size – whether you are a start-up or a fully established company – seeking financial advice and support can help in many ways. According to research from American Express Open Forum, 30% of small business owners haven’t worked out the funds they will need in retirement, for example.
Speaking to a financial advisor will not only help with your business’ current finances but can help you personally to organize and get a plan in place for the future. It’s all too easy to forget yourself.
Have you faced the wrath of the IRS late tax form penalty? If you are late submitting your W-2 or W-3 forms, you can face fines starting at $50 for every late form you file (and that’s if you pay within 30 days. The fines swiftly rise higher the later you are).
Depending on your financial advisor’s capabilities, some can specialize in preparing tax returns and tax planning. So, if you have little experience in handling corporate taxes, or you have a reputation of being late and disorganized with them, hiring a financial advisor to take care of them could help.
But that’s not to say this is essential. You can do your taxes yourself with the correct tools, training, and experience – and modern accounting software can really help to ease the burden of this and cut the amount of time it takes.
It’s every business’ dream to be efficient and profitable and a financial advisor is someone who is on the outside looking in. This means they benefit from seeing things differently and can spot areas where efficiency can be improved – the important details that could otherwise derail your dream. They can help direct the business out of trouble by ensuring they don’t get into cash-flow problems.
Financial advisors cost money. You can sometimes get free advice, but after the first consultation, there is usually a fee – some charge monthly, while others have flat rates ranging from $2,000 and $7,500 a year. While this is an additional outgoing for your business, if they can prevent you from getting fines, help boost efficiency and manage a business’ cash flow – all of the savings soon start to add up.
While you don’t need a financial advisor, it’s up to you to decide if the business will benefit from one. There are many tools available now to help make running a business’ finances easier, but if it’s something you don’t like doing, hiring someone to do it may be the answer. Remember you have to get your money matters right – that’s non-negotiable – you just need to decide whether you’ll get help in doing so.
If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.
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