Management
Maximising the Advantage of Your Financial Advisor
Having a good financial adviser is vital in today's complex business world and with tax obligations being ever more rigorously enforced. Fees must be regarded as an investment in your business future and not just an unpopular cost. The return on investment can be enhanced if you work closely with your adviser to maximise the available benefits. Here are six tips to help you get better value from your financial adviser.
1. Use your adviser
Studies show that at least two thirds of all small business failures could have been avoided if problems were recognised and dealt with earlier rather than later. If you see a problem emerging, talk with your adviser - as you would with your doctor about any health issue. Don't put this off and allow problems to develop and become crises.
2. Bring your adviser into your management team
In most small firms the accountant is treated as a 'necessary evil' and linked with tax returns and
regulatory requirements.
Most accountants can advise on other (i.e. non-financial) aspects of running your business, and are
usually willing to refer you to other specialists if you need more detailed help with any problem.
3. Follow expert advice
Your financial adviser is just that - an adviser, and although you are paying for it, you’re not compelled to
follow that advice. If you have a very good reason to disagree with the advice you should confront your adviser with your concerns and talk it through. Resolution through communication will map your rewards.
4. Plan your record system
Use your accountant/financial adviser to help you design, set up and operate the most appropriate and simplest accounting system for your business. This will reduce errors and duplication (and cost) and provide your adviser with all the facts and figures to prepare whatever reports and statements are needed by various
government departments.
5. Get facts and figures in on time
Good accountants are busy people with many deadlines to meet on behalf of their clients. Having a
well-designed and effective set of records in use will give you the facts and figures (i.e. data) your accountant needs to be able to identify emerging financial and other problems and help you deal with them promptly.
6. Pay your accounting fees on time
Consistent late payment will invariably dampen your adviser's interest in your relationship and their willingness to volunteer advice.
Think of your financial advisor as an outsourced CFO or director of the company - build and maintain a productive working relationship with your adviser as a valued member of your management team.
