One of the main factors that will determine the success or failure of a business is how they manage their finances. Business finance can be very complex at times—well, most of the time unless that is your area of expertise—and there are a lot of different aspects to consider within this general theme. As with all things that are so crucial to the longevity and prosperity of your business, it is always wise to utilize your local professionals as a resource when it comes to the financial side of operations.
Banker & Accountant – Of course, among the professionals that assist businesses with their finances, it is crucial to have a good working relationship with your financial institution (bank, credit union, etc.) and accountant. Both are committed to helping their clients with short term and long term planning, from maintaining day-to-day operations to achieving continuous growth and the highest return on their investment(s). At the same time, they also help clients protect their assets, avoid costly setbacks, and navigate various situations that arise. As a trusted resource, these professionals are crucial to the development, stability and success of your business.
Managing the money that is coming in and going out is no easy task for any business, no matter the size. Financial institutions not only provide accounts with features that help greatly with cash flow, but also offer services for investments and loans. It is wise to look for a financial institution that specializes in commercial/business banking. Businesses tend to have special needs that regular consumers don’t have, so specialized commercial banking services are ideal for businesses. Among the variety of services in the commercial banking arena are business insurance, business loans, trade credit for businesses, international finance, business and investment mortgages, and business credit cards. Having a good working relationship with your banker is a must.
Your accountant is an ally to your business all year long, not just during tax season. Among the most frequently outsourced financially-related aspects of businesses are payroll and taxes, both of which accountants can offer assistance with. This allows business owners the relief of knowing they are done right so they can focus on running their businesses instead. However, other services may include preparing financial statements, conducting audits, financial planning, and analyzing financial information. If you are facing a tricky financial situation and need someone to talk to, your accountant is the professional to contact. They can take all of the facts into consideration in order to walk you through the potential outcomes.
Financial Planner – A financial planner is an excellent tool for individuals and businesses; anyone who is interested in making smart investments and knowing exactly how their money is both managed and working for them at its maximum capacity. Even small businesses aren’t just small investments, and you are taking a risk when you make any decision without knowing all of the information and possible outcomes. A financial planner can help businesses and employers evaluate all of the various options in order to help them grow their business into the future with the use of various financial services. Furthermore, financial planners keep their clients informed and aware of ways to help protect their assets so that they stay in business and continue running day-to-day the way they’ve grown accustomed.
Legal Representation – In addition to financial professionals, legal professionals will also help you protect your assets. A business owner should utilize legal professionals when creating a financial strategy for growth, as well as a marketing strategy and a business succession strategy, whether the succession of ownership of the business is based on death, disability of owners and/or shareholders, or sale of the business. As most business owners put a majority of their assets and effort into making their business sustain itself long term, it is of the utmost importance that they have professional guidance so they are moving in the right direction and are free of costly errors and setbacks. Ongoing legal support of the company will ensure that the company is set up correctly and continues to flourish with tax efficient strategies and limited liability.
Financial professionals are by far one of the most precious assets for businesses, as they work closely together in order to understand their clients’ unique situations and goals. It is important for businesses to have a financial strategy as well as a business plan, and we encourage you to utilize local financial professionals every step of the way.