There are so many different roles that can fill your business' financial necessities. Each company has their individual needs, but as a business owner, how do you know whether your current situation is the right fit for your business?
Most businesses use accountants or bookkeepers because that role has always been available to them. But what other options are available?
It might be that your business could benefit more from the expertise of a Financial Mentor. But without understanding the differences between them, how can you know which one is right for your business? For most people the first and most obvious question is what is a Financial Mentor?
In this article we’ve highlighted the key differences between accountants and a Financial Mentor so that you can make an informed decision.
WHAT DOES AN ACCOUNTANT DO?
An accountant’s main focus is often on tax. Most are well educated in taxation and data preparation. From a business standpoint, this can be very useful. This means that they can give tax effective advice that will be of benefit.
Their services usually include tax returns, large business activity statements, tax structuring, recording data, and auditing services. Some accountants are now offering consulting services branded as a Financial Mentor as they increase the services they offer, but this usually comes from their tax or audit background.
WHAT DOES A Financial Mentor DO?
A Financial Mentor fulfils the function of a CFO (Chief Financial Officer) but at a fraction of the cost. If you were to use a Financial Mentor, you would be outsourcing the financial work of your business to a company with a higher financial capability instead of employing a complete internal finance team.
Financial Mentor's will often have years of experience in finance and business, therefore holding the same expertise as CFO. They are capable of strategic business and financial planning, as well as dealing with cash flow management and financial relationships.
A Financial Mentor is resourced to be “on call” as and when you need them, making sure you get timely advice without the distraction of tax lodgements that accountants are often governed by.
A Financial Mentor can tailor-make a business solution for your company and give an unbiased evaluation of your business’ financial situation.
A Financial Mentor will work with complete transparency and open communication so you can ensure that your company’s finances are being successfully looked after.
SO WHICH ONE IS RIGHT FOR YOU?
Accountants are often best suited to people that need someone to focus on taxation and data preparation for their business. Almost every business needs one. However, if you’re more in need of someone that can advise on finance at a business level, whilst also managing the books, providing performance management and other essential financial functions, then a Financial Mentor might be the way to go.
Accountants are tax specialists, whereas Financial Mentor's are business specialists as well. Additionally, whereas an accountant or internal financial team can be quite costly, outsourcing your financial services to an expert Financial Mentor can achieve equal, or better, results for far lower investment.
Would you like to learn more about how a Financial Mentor can help your business? If so, click here to learn about the benefits of utilising a Financial Mentor.