As a business owner, you’re responsible for a lot; business growth, important decision-making and the well-being of staff, not to mention managing your own workload. You might have a team helping you but as a we all know, a lot of work goes into managing a team. Feeling a little overwhelmed? That’s really normal. All business owners can get overwhelmed with the balancing act of business. But it doesn’t have to get you down.
Cue the business advisor.
What is business advisory?
A business advisory is a professional financial service that gives business advice and helps make strategic plans with business owners or decision makers of a company or organisation. Business advice can benefit any business, no matter the size, helping them make great decisions that will target their goals and financial needs while managing potential risks that may arise.
A good business advisor is a strategic voice that provides business and financial advice for your business. From the fine details to big picture, their role is to support you with decisions and direction relating to your business, finances and employees.
In a report by The Australian Centre for Business Growth, they found 14% of businesses failed due to poor financial management,
Whether you’re experiencing business growth, struggling with cash flow, putting on new employees or are lacking clarity on the financial health of your business, a business advisor will help you with your specific situation.
Although there is many benefits to getting business advice, one of the most impacting results of getting a business advisor on your side, is a renewed sense of confidence about your business health and finances. Getting support with your business is refreshing and can lift the burden of running your business day to day.
Sounds good? Let’s see exactly how a business advisor might be right for your business.
Business advisory services: a list of business advisory services and their benefits
There’s many great things a business advisor can help you with for both established businesses and startups.
Strategic Business Planning
Strategic business planning is usually the first point of call for business owners who want to get professional advice across the overall health and strategy of their business. From sitting down and opening a conversation about your business needs and goals, to putting together a detailed business strategy, strategic business planning with a professional advisor can give you important direction that will take your business to new levels.
They‘ll likely provide advice on the financial impact of hiring employees, better reporting on finances, renting an office, selling or acquisition of a business, and more.
Your business structure is the starting place for how your accounting will play out over the financial year. It’s important to get it right, at the right time, so that when you experience business growth, put on new employees, or lodge a tax return, you’re making the most of your financial and business position.
There’s many things to consider when looking at the structure of your business, so having a professional who knows the ins and outs of business structures and compliance is integral.
Different entity structures pay different tax rates. If you’ve seen significant growth as a partnership or sole-trader, then it may benefit your business to transition structures to a company for tax benefits. This is a case by case situation, which is why advice is necessary.
Cashflow can make or break a business. According to Xero in their report Crunch: Cash flow challenges facing small business, they reveal that “Cash flow is a persistent and systemic challenge, with the average small business cash flow negative for 30% of the year.”
There’s no one-size-fits-all solution to increasing cash flow. A business advisor will help you identify problem areas such as profitability vs cash, forecasting, seasonality, planning for the unexpected, invoicing and growth.
Having a cash flow plan that identifies these problematic areas and puts together a strategy for overcoming them, will take your business to the next level.
Financing is the task of acquiring funding for your business activities. Financing can be helpful in order to leverage future expected money flows to good use for projects today. You can read more about the different types of financing available to your business, but the role of a business advisor is to help you understand what the best financing options are for your business, the most suitable source of finance and advice on the potential risks and implications of financing.
Accounting Software Consultancy
Accounting software is a great way to streamline your accounting and produce accurate financial information quickly. It’s essential for any business owner who wants to gain valuable insights as to the financial health of their business.
A business advisor can provide advice on which accounting software is right for you, and can help you get set up. Or if you’re already setup, maybe you’re not making the most of what your accounting software has to offer. From a crash-course to in-depth analysis and reporting, a business advisor can help you create reports and understand what they mean for your business.
Selling or Buying
Whether you are buying or selling a business, a business advisor can bring expert advice on how, when and who to sell to or buy from. Whether it’s a small financial outlay, or a big deal, sound advice will ensure there’s no mistakes made and help plot out any potential risks to look out for.
From liaising with solicitors or agents, researching and budgeting, and making/accepting offers, there’s lots that goes into selling or acquiring a business. A business advisor will walk with you through the process and provide the appropriate support.
Startup Business Advisory services
If you’re starting a business, there’s no better time than now to consult a business advisor. They’ll make sure your business gets off on the right foot by guiding you through the business setup process including budgets, risk management, business plans, taxation, cashflow management, financial documentation, business structures and compliance.
Business growth strategies and advice for business growth
If you’re experiencing business growth, or have a vision for the growth of your business, you will benefit from the strategic advise of a business advisor.
There’s many different ways to look at business growth which is why specific, tailored advice is the best way to approach the growth management of your business. Here’s some of the advice you might expect from a business advisor.
Make a plan!
What does the next 3 months look like, 1 year, 5 years? Write down your goals for your business and have an idea of what you are working towards financially. A plan is the first step to growth.
A good budget, even if it’s an educated guess, is key when implementing your business plan. What does your business need each week or month to survive? How much should you be putting away for tax, PAYG, superannuation etc? How much income does your business need and what profit are you expecting this financial year? With a budget, you can plan ahead for expenses and taxes.
Implement accounting software
Good software means smooth sailing in the accounting department of your business. It’s so easy to get behind with what’s happening across the finances of your business, especially if you are employing people. Not sure what software is right for you? Check out Streamlining your bookkeeping with accounting software.
Ask for help!
Seek advice. Expert business advice can be the key to unlocking your business growth. Whether you‘re running a 7 figure turnover business with employees, or managing a side hustle in your spare time, a business advisor will help you with your specific business goals and challenges.
Accounting VS Financial Advisors: Do I need an accountant or financial advisor?
When people think accountants they might think taxation and compliance. That’s part of it, but accountants can also be business advisors due to their financial experience and understanding. An accountant business advisor can provide help with strategic business planning, business structures, cashflow management, financing, selling or buying a business and other accounting advice.
A financial advisors’ job is to collect detailed information about your financial situation and provide advice on areas such as investing options and retirement.
For most things business and accounting related, your first point of call should usually be a business advisor.
How does a business advisor work?
1. Research & Analysis
A business advisor will usually start with a conversation with the business owner. From there they collect data from your business including financial and operational information to gain a clear picture of what’s happening and look at what needs attention and work. An advisor will then generate a clear picture of the strengths, weaknesses threats and potential opportunities your business has.
2. Strategic Planning
This is the problem solving phase where plans and strategies are outlined and advice is given regarding how to move forward successfully as a business.
A business advisor will help implement the business strategy and plans, ensuring they are inline with the goals of the organisation and can track the process as they go.
4. Reflect & Evaluate
Having periodic reviews to reflect and evaluate the success of the implemented plan is key. Changes and adjustments can be made where necessary as the industry, landscape and business changes.
When to get business advice
It's never too early to realise opportunities for your business success. Business advisory services is for everyone from sole traders and to enterprises.
A few key milestones to get advice are:
- Starting a business
- Managing rapid business growth
- Acquiring a new business or buying out another business
- Selling a business and exit strategies
- Changing business structures
- Employing your first employee
- Experiencing problems with cashflow
- Needing help with debt management
Finding an experienced business advisor accountant that will take you to the next level
From start-ups, to family-owned businesses and SMEs, our accountant business advice is purposed to help you build an effective, profitable, and sustainable business. We take time to understand your unique business, and from a place of understanding, we help you to create a strategic plan, improve efficiencies, take advantage of financial opportunities, and make decisions that will take your business to the next level. It works best as an ongoing relationship, so we’re always by your side to bring clarity and purpose to your business and finances.