A financial consultant is a professional with expertise in a specific area of financial management. Financial consultants provide a comprehensive scope of accounting and business finance services.
Some specialize in small businesses finances while others provide a broader range of taxation, employee benefits administration, pension and other business-related management. While the vast majority of financial consultants work with large corporations, there are independent financial advisors that provide comprehensive, customized financial advice to small businesses.
There are many roles that a financial consultant plays in the accounting and finance of a small business. Most focus on one or two areas. An accountant, for example, will conduct the company’s accounting and prepare financial reports, including income statements, balance sheet reports and management information analysis reports. The accountant will create a business statement which details the business’s operations as compared to its expenses and balance sheet reports which include an analysis of the company’s assets, liabilities and ownership interest. In addition, the accountant will conduct periodic review meetings and financial discussions with management to identify areas for future growth and to make suggestions for reducing expenses.
- A management advisor, also called a business consultant, is a financial consultant who provides guidance to small businesses on a variety of issues related to day operations.
- Management advisors help small businesses develop and implement strategies for increasing sales, expanding customer markets, reducing cost, reducing customer risk and implementing strategic plans.
- In addition, management advisors can also help small businesses obtain financing. Many management advisors provide assistance to companies in setting up an effective payroll system, insurance and human resource practices and creating a workable enterprise resource planning department.
A tax consultant, also known as a CPA, is an expert in tax laws and professional tax counseling to small businesses. Tax consultants provide comprehensive tax consultation services, free of charge, to help businesses and individuals comply with their tax obligations. Most importantly, they provide advice on issues that face both domestic and foreign corporations and individuals.
In terms of self-employed professionals, there are tax preparation agents who specialize in providing tax preparation services to solo practitioners as well as to law offices and practices. In addition, there are tax preparation businesses that provide professional tax services to large law firms and corporations. The tax preparation industry encompasses a broad range of professions, including accountants, estate planners, auditors, attorneys, financial planners, and home gardeners. Many other financial consultants, including independent financial consultants, provide general accountancy, budgeting, insurance, real estate planning, investment and business financing services to a wide range of clients. In addition, many independent financial consultants offer tax preparation, settlement and trust planning to individuals and small businesses.
A business consultant is an independent financial advisor who provides specialized financial advisory, tax preparation and trust management services to small businesses and individuals. These specialized services can be used to assist businesses in increasing cash flow, reducing debt, implementing asset protection plans, implementing payroll management systems, and other related services. The accounting and finance industry is the largest client of these business consultants. In fact, nearly every accounting and finance firm uses a business consultant to provide specialized accounting, payroll, investment and business finance services to clients. While many accounting firms provide their own internal accounting personnel to provide audits, reporting, and compliance programs, most independent financial consultants work directly with client businesses.
A tax preparation consultant provides his or her specialized financial advising and tax preparation services to small businesses and individuals. In many cases, the tax preparation consultant also acts as an independent financial consultant for several clients. Many tax preparation consultants operate separately from their law firms or other legal firms that provide audits, compliance programs, and asset protection planning.
Taxation is a specialized area of responsibility for many accountants and other Certified Public Accountants (CPA). This specialized area requires knowledge of many areas including taxation, business valuations, investment and business needs, payrolls and benefits, real estate and mortgage financing, and tax preparation. Certified public accountants provide their specialized accounting and advisory services to a wide range of small businesses and individuals who are looking to deal with the complex issues involved in accounting for their small businesses. Clients seeking the advice and assistance of a CPA often turn to the accounting and advisory services of a Certified Public Accountant (CPA).