On the average, an online startup business will have more assets and financial concerns than the individuals who run and manage the company. While many look to financial advisers to aid them in personal affairs, business owners will benefit by hiring an adviser for a number of reasons.
1. Determine a Company’s Financial Health
There’s a reason corporate balance sheets have areas for long-term investments and fixed assets such as land, buildings and equipment. In addition to these accounts, there are also liabilities for short and long-term loans and owner’s equity.
To the average business owner, a review of the balance sheet may not reveal the financial health of the business but to an experienced financial adviser they are educated in delving deep into these accounts to find bad investments, fixed assets no longer viable and analyzing the company’s true liability behind short and long-term loans.
These insights will help business owners obtain needed knowledge on making changes to company assets and liabilities and advisers can help lead entrepreneurs in the right direction with sound strategic plans.
2. Company Retirement Plans
If business owners offer retirement plans to their employees, there are rules to these plans. CEO of Fisher Investments, Ken Fisher recommends enlisting the help of experts in the field who can cultivate a good plan that will benefit not only employees but the business owner(s).
Many financial advisers also offer entire benefit plans and in today’s economy, many employees choose to work for a company based on the benefits they offer such as healthcare, EAP plans and retirement benefits.
3. Recommend Tax Strategies
For Limited Liability Companies and S-Corporations, tax strategies are key on earned income. Because these types of corporations are pass-through entities which means profits pass to the owners and partners of the business, a solid tax strategy is essential.
Is it best to reinvest in the company or place profits in personal investments? What tax liabilities will the company face with a profitable year? As a business owner, if you’re unsure of how to manage your tax liability, a knowledgeable financial adviser can be gold.
4. Business Plans and Case Statements
Not only can a qualified financial adviser help you with essential business plan elements like forecasting revenue and expenses, they can also review current business plans to determine if the business is on track or going downhill fast.
Through an analysis process and working with corporate leaders, an adviser can guide and suggest the right path to financial health which will ultimately help businesses develop realistic case statements investors or lenders will find attractive.
5. Business Valuation
Most business owners know what their equity is on paper but don’t know the actual value of their business. It is essential to understand that value to attract investors, succession planning or when selling a business.
How do you value intangible assets or intellectual property? A financial adviser is versed in business valuation can help determine the right method for valuing a business based on the industry—and there is more than one way to place a solid valuation on a business.
Hiring a financial adviser for your online business can be invaluable for a number of reasons. If you randomly guesstimate, expenses are eating your revenues, don’t understand business plan structure or how much your business is really worth, it’s best to turn to an adviser who is knowledgeable in these areas.