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Top Questions to Consider When Hiring a Financial Advisor

As a successful business owner, you know that your time is valuable. When your bookkeeping duties start to get in the way of your usual creativity, it’s time to consider hiring a financial advisor. There are various firms out there to help manage your business’s finances, however, there are some key criteria that you should utilize when making your ultimate decision on who to hire to do the job.

Happy couple seal a deal with their personal financial advisor at home

The first piece of criteria you should use when evaluating potential financial advising firms is the cost of their services. You don’t want to just pick a firm solely based on their price. Rather, you want to first look at the price, so you can have a general idea of what firms fall within your budget range. You don’t want to hire a financial advisor that takes care of a Fortune 500 company when you own a small business. It doesn’t make sense for them and it doesn’t make sense for your budget.

When you’re having a discussion about the price you will be charged if you utilize a specific firm’s services, you need to ask how they charge. Different firms charge for services in various manners. For example, you may find out there is an initial planning fee that you must pay out when you first start your relationship with the firm. Some firms may charge a flat management fee, while others will charge a percentage of the assets of the business. How a potential financial advising firm is going to charge you is an important consideration to take into account. You should be aware of how the fees will progress or stay the same based on how your business grows in the future.

The next piece of criteria you want to use to evaluate potential financial advising firms for is the services they offer and the typical types of clients they deal with. It’s vital that you understand what parts of the financial needs of the business will be taken care of by a firm and the parts that won’t be. For example, a firm may take care of bookkeeping, hedge fund consulting, and investment portfolios. They may not handle tax filing, which is something you need to take into consideration so that no parts of your business’s finances are found lapsed latter down the road due to confusion between you and the financial advising firm. It’s also a good idea to find a firm that works with businesses of your size. You don’t want a firm that specializes in individual advising or Fortune 500 advising.

The last questions you want to ask any potential advising firms is what type of credentials and licenses they possess. At the bare minimum, any firm you’re considering hiring should have certified public accounts or CPAs. If you’re interested in investments as well you should ensure the firm has personal financial specialists or PSFs. There are various certifications available you should do a little research on before consulting with a potential firm.

When your business moves out of the garage and into its first real space, it’s time to hire a financial advisor. Although you may want to do everything on your own, as many entrepreneurs start out desiring to do, it’s only going to harm your productivity in the future. Do yourself a favor and follow the criteria above to hire a financial advisor so you can spend your time doing what you do best.