The Difference Between a Lawyer, Accountant and a Financial Advisor

When it comes to business, it’s important to surround yourself with people who can help you, both at the beginning and throughout the life of your business. Lawyers, accountants and financial planners all have important roles to fill when it comes to business. Some of these people may be needed on a regular basis, while the need for others comes and goes, depending on what your business goals are.

For instance, financial planning is essential before you even start your business, to ensure the concept is a viable one. Without this in your business plan, the lenders won’t be able to tell if the idea is a good one that will make a profit; something they need to know if they are going to lend you money. A financial planner can also help you grow your business once it is established. They can ensure you get the most out of your business profits by creating an investment plan. Simply putting money in the bank is not the best way to invest it these days.

Good financial advice will also be needed when it is time to quit your business. You can’t work forever and you may want to sell the business or leave it to your heir. The right advice for your aims and goals will enable you to accomplish much without losing too much in the process. The planner will be able to give you advice on debt consolidation, budgeting and insurance.

An accountant can do some of the above, but they are not allowed to give financial advice unless they undergo more training and are licensed to do so. An accountant can provide invaluable help in the area of taxation and how to maximise your tax deductions. This can often save a business thousands of dollars. They can save you a lot of time and stress by preparing the BAS, preparing tax returns, providing advice on business structure and conducting audits of financial accounts.

An accountant should be able to tell you at any time what the finances of your business are and whether you can afford to expand in the way you want. They know all about how to ensure a good cash flow and make sure your business finances are on a solid footing. Your business will improve exponentially with the advice of a good accountant.

A tax agent can also do some of the above, but they mostly do the BAS and prepare and lodge your income tax returns. They may be able to advise on how to save with better tax deductions. It is really better to have a fully qualified accountant who can help you in the way your business needs. They can also ensure your personal tax returns are done correctly.