There is a wide range of professionals out there who know exactly what to do to help
make your business become a success. Knowing exactly who you need though, can be more
difficult than it seems. It can appear that there is a crossover between the two roles. After
all, both are financial experts in terms of business. It is important to know though, that
there are some notable differences between the two. Ensuring that you have a clear
understanding of each of the roles will help you know the answers to your questions.
The financial choices that you make for your business can be the key to your success; so it is
well worth getting a professional on your side. Really it’s important for a business to have
both, but so many people seem to think they do the same work. This is not the case though,
and being aware of how to use each one can be highly beneficial to your business and lead
you to gain opportunities quicker. Read on to discover the key differences between an
accountant and a financial advisor and how you can decide which one to call.
What Do Accountants Do?
Accountants are highly qualified professionals that provide massively important financial
services to businesses. They are responsible for keeping and interpreting financial records.
They will take care of documents such as annual accounts, tax returns and profit-and-loss
sheets. They can also provide tax advice and analyse how your business is performing
financially.
Accountants will keep track of and analyse the money coming into and going out of your
business. They will also ensure that you are observing tax laws. The benefits that using an
accountant can have on your business are almost endless. They can help you reduce your
costs, plan your business growth, help improve your cash flow, and take care of your
financial reports as well as personal finances such as pensions.
The tasks that accountants can do for your business will save you a great amount of time,
therefore reducing your workload and taking some pressure off you. The activities
accountants do require lots of time and expertise. So why not let a professional accountant
take care of it for you? The benefits are undeniable.
What Do Financial Advisors Do?
To put it simply, financial advisers provide their clients with expert advice on how to
manage their finances. Unlike an accountant, they are not involved with the day-to-day
running of your business. They will work alongside you to help identify the strengths and weaknesses of your business and come up with ways to improve things.
Financial advisers will look at the bigger picture of your business rather than pay attention
to the nitty-gritty details that accountants focus on. The strategic nature of a financial
adviser's role is what makes it differ greatly from an accountant. They primarily focus on your business’ growth rather than looking at the legal and sensible stuff.
What One Do I Need?
Starting a new business – We would recommend using an accountant at this stage as
they will be able to assist you with important paperwork and ensure you have been set up
correctly. A financial adviser may not be necessary at this early stage.
Looking to expand into new areas – A financial adviser may be best suited at this stage
as they can help you to identify opportunities and help you create a strategy to go forward
with. An accountant would also be beneficial though since they can assist you with funding.
Reducing your costs – An accountant could be your best bet in this situation as they deal
with your finances on a daily basis, therefore they will know the best ways you could
possibly reduce your costs.
To Conclude
Both accountants and financial advisers are trained extensively and provide really helpful
services to businesses. They have both had lots of practice in helping other businesses with
their finances and growth. If you use one, ensure to use each to its full potential.
We hope this article has been useful to you and we hope it has taught you lots about
accountants and financial advisers. Please take a look at our many other articles as they
could also help you make financial decisions pertaining to your business.