How to choose a financial advisor and what is it used for

by TM Maria Be a king in your own kingdom

The financial advice generally seeks to reconcile the present and the future of the recipient. He does this through advice on how to get the best financing and how to make the best investments.

In the business field, the financial advisor can help in many different ways, depending on the needs of the business. It helps to understand the risks, analyze the profitability of the business, improve the management of the treasury, and optimize terms, interest rates and financing conditions.

What a financial adviser is for: results and functions

The scope of business financial advice is very broad and adaptable to the particular circumstances of each business.

It may include, among others, the following functions:

· Study of financing alternatives.

· Support in the preparation of investment projects.

· Valuation of companies.

· Valuation of specific assets.

· Advice on mergers, splits or acquisitions of companies.

· Viability plans.

· Business risk analysis.

· Performances in contests of creditors.

· Preparation of financial reports for internal use.

· Analysis of the financial statements.

· Financial-fiscal planning.

· Study of alternatives to cover certain risks.

· Advice on insurance for companies.

· Presentations to investors.

· Relations with banking entities.

· Renegotiation and refinancing of debts.

· Services audit and consulting legal, accounting and tax.

· Treasury management.

· Sectorial comparisons.

· Advice for the improvement of administrative processes.

· Preparation of predictions.

· Business plans.

How to know if the results of financial advice are good

In the first place, it is necessary to determine if the subject matter of advice is necessary or convenient or it is not. We can find ourselves with aspects that are irrevocable because they are legal obligations, because the people or entities with whom we are related demand it or because they are essential in the management processes.

However, some tasks are not indispensable, but they are convenient. To know, we have to analyze what this task contributes to the company and what the risks that could be derived from not carrying it out.

Finally, if a concrete work is essential or convenient, we must meditate whether to develop it by ourselves or entrust it to financial advice. We must consider the cost of both options and the quality of the results in different scenarios. We must keep in mind that, in different environments, the best answers may vary and it is not always easy to change the initial decision and re-externalize or internalize a financial task.

Recommendations for choosing a financial advisor

Some tips can help us choose the right financial advice. The most important is that the basis of a fruitful advisory-client relationship is reciprocal trust. The entrepreneur must perceive the adviser as a permanent support and the professional must believe in the business project, in its possibilities for improvement and in that its contribution will be positive for the business. To be successful entrepreneur our recommendation is to follow financial advisor Anaheim Hills CA if you’re in this area.

On the other hand, the flow of data and information is very important. A good financial advisor must be able to collect data from accounting and other internal and external sources. And the result of that work has to be useful in making decisions and improving the ability to transmit the project to third parties.

In addition, it is convenient to establish frequent contact with professionals from different areas of the company, not only to collect data and opinions, but also to make sure that everyone understands the financial challenges of the business and their role in them.