Entrepreneurs need to know how to manage their business finances to be successful. They have to develop a strategy to use their monetary resources optimally. The revenue from their sales shouldexceed their coststo earn a profit. They can only expect to achieve their long and short-term organizational goals and expand in the market niche. Moreover, they will be able to maintain a steady cash flow for their businesses.
Scott Tominaga is a financial expert with over 17 years of valuable experience in the field. His area of expertise is in hedge fund investing and back-office functions. He even has extensive knowledge of accounting and compliance requirementsin firms specializing in financial services, and currently, he holds the post of Chief Operating Officer in PartnersAdmin LLC.
He says most entrepreneurs do not have the skills to tackle financial issues. They hardly have any knowledgeof taxation, accounting, excise duties, and investments. Moreover,their business expenses often exceed their revenue. As a result, they incur losses. He suggests they should hire reliable financial advisors for the following reasons:
- To devise ways to reduce their business costs,
- Assist them in devising a suitable financial plan,
- Come up with ways to reduce their tax and excise duty liabilities,
- Use their experience and expertise to improve businessrevenue and cash flow, and
- Introduce the business to investment schemes, which can increase wealth.
He explains financial advisors’ entrepreneurs generally hire fall under the following categories:
- Certified financial planners (CFP),
- Certified Public Accountants (CFA),
- Lawyers specializing in tax matters, and
- Investment advisers registered with the Securities and Exchange Commission
Factors to consider
Entrepreneurs should consider the following factors when hiring a financial advisor:
- The reputationof the financial advisor by browsing client testimonials on his website,
- Accreditation and certificate of practice from professional accounting bodies,
- Academic qualifications and credentials,
- Level of experience,
- Understanding of their businesses,
- Personality and approach to assisting clients,
- The fees charged for services, and
- A valid license to suggest and sell investment schemes.
The benefits of hiring a reliable financial advisor for entrepreneurs are as follows:
- Offers an impartial opinion on the financial position of the businesses,
- Provides expertise in managing expenses,
- Enables them to focus on other aspects of their business,
- Assists in dealing with tax matters,
- Develops financial strategies which help them to achieve thebusiness goals,
- Provides an insight into profitable investment schemes, and
- It helps them to understand the financial markets.
Scott Tominaga concludes on the note that entrepreneurs can manage their business finances prudently by working with a financial advisor. They can choose from a certified financial planner, public accountant, or tax lawyer. The expert can help them finds ways to reduce business expenses and boost revenue.
Businesses can get valuable assistance in handling tax matters and selecting good investment plans. When choosing the right specialist, entrepreneurs should assessthe financial advisor’s reputation, experience, accreditation, and academic qualifications. The professional should even have a valid certificate to practice for helping businesses to expand their business.