Money Basics: What Pros you Need to Talk to and Why
Numbers are a gift – some of us are born with the ability to use them, others read them as if they were a foreign language. Math is a seemingly natural trait that, like so many other talents, was either given to you or it wasn’t. But on either side of the spectrum, it’s a good idea to talk to a pro. Those who know the ins and outs exactly, in whatever context, and also know the best way to get things done. Like taxes or filing bank statements.
Why should you look to guidance rather than tackling the project yourself? Assuming you know too much can leave you with messy files and a hurt ego, while accepting there’s someone better for the job can leave it done correctly … and saving you from having to do the work.
So, what pros should you talk to?
An accountant – when you’re self-employed (and likely employing several others), there’s bound to be some dollar-based headaches. Rather than trying to crunch the numbers yourself – let alone look at tax laws and determine the legality of healthcare or upcoming transfer-by dates. Additional perks? That’s not all they have to offer. A skilled accountant can run your payroll, help you save on write-offs, actually pay your income taxes, and more. Or, if you’re so inclined, have them run all your monthly paperwork and leave a more enjoyable task for yourself.
Without having a pro on hand, you could be cheating yourself out of some serious cash. Either paying taxes that don’t apply, or not claiming funds that count against income tax. Considering the penalties for breaking such rules, it’s always better to leave it to a very skilled middleman.
A financial advisor – these folks know all about investing. They know how to create a retirement account, how to make your money make more money, and what to do with it when it’s not necessarily the right time to buy. Considering most business owners don’t have anyone contributing to their 401-K (aside from themselves), a financial advisor is imperative to have on board. They can also help you determine future account sizes, and what you need to do in order to reach your financial goals.
A broker or banker – different entrepreneurs have preferences as to which route they’d rather take (banker or broker), and it’s a step that’s up to you. In either case, however, remember it’s important to find a professional who will work for you and to get you the best deal. Without a personal relationship with your banker, it’s likely that they’ll try and make themselves the most money, not necessarily get you the best deal. This is oftentimes why buyers prefer to work with a broker, who is essentially a go-between from individuals and bankers. With either path, having a pro who you trust is sure to land you a better deal, and peace of mind.
CFO – if you’re big enough, it might be time to hire on a chief financial officer … even if it’s on a freelance basis. (Paying their annual salary fee can get quite pricy.) Looking to their guidance could help you save across the board. Because it’s their job to oversee every single cent and be sure that it’s being best spent, you have a hand in every expenditure. They also know regional prices, and what other companies of similar sizes are bringing in and putting out. Their professional eye has helped many a company from spending too much (or too little) in all the right areas.
When considering your current or future franchise, there are plenty of seasoned professionals who can offer a lending hand. Don’t overlook the importance of their knowledge, and remember that asking for help could save both dollars and sense.