With their huge number of 1.5 employed workers and 44% economic activity, small businesses are, for all intents and purposes, the backbone of the American economy. And even though countless owners try to treat them as DIY projects and make numerous budget cuts, the reality soon catches on and we learn one of the most basic rules of the business world – to earn money we need to spend money.
That brings us to the issue of financial advisors that are, at least in the SMB sector, observed only as an additional financial burden. Let us see then are they truly a novelty or more of a necessity.
Financial advisors save time and energy
So, let’s get one thing straight – with enough, time, money, and dedication, small business owners can summon enough knowledge to perform the basic duties of a financial advisor? But we have to ask at what cost and could that time and energy be spent much better? The answer is simple – yes. Taking on the tasks that are not within your field of expertise is possible, but it destroys your productivity, leads to procrastination, and draws your attention from the activities that make money for your company.
Getting help in evaluating the market trends
Small businesses usually start in the local playground. But, as the company grows, you will inevitably have to explore some new untapped territories. In the case of countries like the USA and Australia, this journey may take you across an entire continent and a number of different states with specific market tendencies. Tackling these duties requires new technology, detailed research, and advanced market projections. All these things are very hard and expensive to acquire or develop in-house.
The job of a financial advisor is not strictly concerned with market projections. Companies providing these services are usually also involved with accounting financial audits which is yet another area where you want to leave the matters at hand to professionals. Also, like in the previous example, you need to take into account state-specific regulations. So, if you are expanding to or starting your company in, let’s say, New South Wales, you may want to look for a professional accountant in Sydney.
Saving money in the long run
In one of the previous passages, we have mentioned that mastering the skills of a financial advisor eats up a lot of time and money. Things are not that different even if the owner doesn’t decide to tackle all these duties personally but rather develop a financial department in-house. The expense that needs to be made on training, financial and accounting software, salaries, and office upkeep more than outweigh all the benefits you are getting out of this arrangement. These things are better left to third-party.
Access to top-tier financial services
Last but not least, we would like to point out that, professional companies working in the financial sector have way more experience and access to better talent than your homegrown accounting and financial department can ever hope to get – at least if you don’t plan on spending the small fortune on this specific business branch. By hiring the services of a professional accounting and financial advising company you are getting access to top-tier industry talent with years of experience without having to actually hire any of these experts.
We hope these few compelling arguments showed you that your small business can only benefit from hiring professional financial and accounting services. There are a lot of business owners who think that working in the SMB sector gives them the freedom to take some critical tasks on their own shoulders. This couldn’t be further from the truth. In order to grow, companies need to excel in all areas and that means some things are better left to professionals.