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Financial advice: how it can turn your business around


Studies have shown that there are over 5,000 financial advice firms operating in the UK, and they’re used for everything from mortgage applications to the creation of investment trusts. However, from the point of view of a business, financial advisors have lots of other potential uses. They can help you manage your tax burden, for example, while they can also advise on stock market floats and the buying up of shares in other firms. This article will explore these themes and explain why good-quality financial advice can be vital for a firm such as yours.

Reason and strategy

As an entrepreneur or business leader, times can sometimes get tough – both in a financial sense and in an emotional sense. On the latter point, it’s sometimes tempting during stressful times to make business decisions based on what seems like the easiest or most satisfying option. However, this is not always a good idea. With a financial advisor on hand, you’ll instead make choices that are based on reason and strategy as opposed to stress-induced feelings. In the long term, you’ll be grateful that you prepared for the tough times by hiring an independent external advisor who can see the picture more clearly.

Tax rules

It’s the bane of every business’s life, but it’s something that can’t be avoided. Tax is a certainty – and whether you’re paying corporation tax, income tax, VAT or a mixture, there are all kinds of rules for your business to follow. A financial advisor can help you in this regard by pointing out what your business’s tax obligations are and ensuring that you know your legal, above-board options for structuring your business in a way that makes it as tax efficient as possible.

Stocks and shares

For many businesses, stock trading is something that only comes into play when the firm considers selling off some of its own equity, perhaps in the form of an initial public offering (IPO). If you’re planning to do this, then it’s definitely wise to hire a whole group of financial advisors with a special interest in stock market floats.

However, some firms also choose to buy the stocks of other firms in a speculative manner, especially if they have high cash reserves to spend. This isn’t always the right choice, especially if the firm doing the buying may need the investment cash in the future, but it can sometimes suit. Speaking to a financial advisor can help to clear up any confusion. A good weekly stock calendar can also help you here if your business plans to go down this route, so it’s worth looking for one of these as well as speaking to an advisor.

In a world where the wrong financial decisions can have long-lasting effects, it’s essential to obtain financial advice before going down any particular route. This is especially true in the world of business, where the wrong choices can not only impact your profits but also harm your employees’ prospects. If you require explanations, information or suggested courses of action, then don’t delay: get in touch with a financial advisor today.

Claire James