How to Know if Your Business Needs a Financial Advisor
Being financially literate and owning a business aren’t mutually exclusive, but your passion can fuel your venture. And just like how a car needs a skilled driver to reach a destination, your business needs someone to provide financial direction to keep things afloat.
Thankfully there are people who can help guide you with the financial side of your business and they are known as financial advisors.
While running a business, there are certain times when you will need expert knowledge in this arena and here are three signs that show you that your business needs help from a financial advisor:
Finances Have Never Been Your Strong Suit
Let’s face it — not everyone is gifted with financial knowledge and if you are one of those people, this means you are bound to make some financial mistakes along the way.
One example could be only offering Pay Pal to your customers when you should also be offering them the option to use a credit card as well.
Another example is you not knowing you need to set up an emergency fund for your business.
When you admit to yourself that finances aren’t your strong suit, understand that small mistakes can eventually lead to big problems.
Forbes reported that over 44% of Americans would rather discuss religion or politics than money, but this shouldn’t deter you from seeking help from a financial advisor. Not only will they help you manage your business’ money matters, but their training and expertise can help you enhance your own financial skills.
For instance, they can help educate and guide you on why getting a Small Business Loan instead of a Merchant Cash Advance will help you and your business in both savings and investing money back into your business.
You’re Confused About Taxes
When it comes to managing the finances of your business, it’s very important to stay on track with your tax payments. Failing to pay your business income taxes on time could result in costly consequences like fines or penalties from the IRS. Keeping on top of your tax situation could mean the difference in your business being a success or a failure.
Fortunately for experienced financial advisors, they are well equipped to deal with these types of situations, so if you think you’re paying too much tax or you don’t have the time to organize your books and file them, they can help you out.
Maryville University also notes that financial advisors are trained in all matters of business finance, from financial reporting and accounting information systems to income taxes and auditing. The university also details how these types of advisors are becoming more popular with 142,400 more positions set to be available by 2024.
This is a clear sign of the increasing demand across different industries for this type of profession. While you may feel more comfortable handling some tax aspects yourself, sourcing professional expertise will ensure that you’re making the right decisions when it comes to your tax situation overall.
You’re Worried About the Future
For business owners, retirement looks very different and maybe even more difficult to accomplish compared to company employees. The financial future of the latter is more clear-cut, as they have the employee benefit of a retirement plan like the pension pay or a 401(k). On the other hand, you as the business owner are solely responsible for your own retirement. This becomes more difficult as experts at the University of Pennsylvania note that you need to save 40% of your income for at least 30 years to enjoy even half of your final salary when you retire.
At the end of the day, retirement is a major part of your life, since how much you have saved determines the type of life you’ll live when you’re done working. To avoid being part of the one-third of Americans who have less than $5,000 set aside for their future, it’s a good idea to seek the assistance of a financial advisor. With their financial prowess, they can help steer your business in the right direction for growth and stability, as well as your own future.
They can even help you with current financial issues that are eating away at your profits and taking up your valuable time. Case in point, some customers may take advantage of your business by calling their bank to dispute a charge which then leads to a chargeback on your merchant account. In the long run this does jeopardize your business, and this is why we at Rapid Financial Solutions specialize in preventing chargebacks and fraud through our various services for your high-risk merchant account.
Along with helping you construct the retirement plans for your employees, another service they offer is providing you with the proper insurance you need to protect you and your business. This insurance protects you from any accidents in the workplace, any issues you may have with employees, etc.
So, if you and your business need any of Rapid Financial Solution’s services that we offer, reach out to protect your business and help you increase your bottom line.
This article was written by Amanda Brownlee exclusively for rapidfinancialsolutions.com