Why finance advisory should be embraced as a regular process instead of an external intervention

Summary

A financial advisor combines their expansive knowledge and individual experience when it comes to delivering value to their clients. Not only do they succeed in adding value to their field of specialisation, but this extends to your entire company as well.

A business has a lot to gain from embracing these services as a regular part of their operations as opposed to an external intervention including:

Risk mitigation: Business risks are not always as clear-cut as COVID-19 or an economic downturn. Financial risks can catch your business unawares. A financial advisor can help you recognise these threats before they have a chance to impact your operations.

The formulation of strategies: Strategies are an important part of business success. A financial advisor can help you maintain the quality of your operations as you grow and ensure that you are financially compliant at all times through targeted, insight-driven strategies.

To stay competitive: A financial advisor can help you compete in the market by introducing new ideas and optimisation strategies to your company. On top of these services, your advisor can also boost your competitiveness through other solutions such as training, outsourcing, maturity assessments, and supply chain management. 

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No man is an island. Neither is a business.

Every company, no matter how big or small, relies on a larger ecosystem of stakeholders that support and power each organisation.

In the highly competitive market that exists today, the success of a business often depends on the apparent failure of another. This cutthroat environment leaves smaller businesses and niche companies at risk of falling behind and suffering from financial losses that force them to close their doors. 

In these moments, it’s easy to view external intervention as an obstacle that a business must overcome in order to thrive. Finance advisory challenges this belief.

Finance advisory is a method through which a business can benefit from industry insights and professional experience. This is frequently believed to be a step that a business will only take if it is struggling financially or suffering from certain roadblocks or inefficiencies. 

There are many benefits that can be enjoyed, however, if financial advisory services are regularly invested in by any business. 

Two questions about financial consultants and financial services consulting companies need to be answered before we delve into the advantages of finance advisory in detail.

What is a financial consulting firm? 

Financial services consulting companies deliver more than just accounting and finance support for your company. 

Although the hands-on services they offer are at the heart of what financial services consulting companies do, they offer a lot more in terms of gaining a competitive advantage in a global market and getting ahead of the curve. The focus is always on value addition. 

From strategy, risk management, and digitalisation to building resilience and crisis management and recovery techniques, financial services in consulting create room for higher value addition across your operations.   

The localised knowledge they provide is another good reason why you may choose more specialised support such as financial consulting firms in London if your operations are based in the UK, for instance.  

Why do we need financial consultants? 

A financial consultant delivers lasting value on an accelerated timeline. When it comes to navigating the volatile market, no company can be sure that it is lowering its risks, maximising opportunities, securing its bottom lines, and making the right economic, social, and business decisions. 

Financial security consultants, as the name suggests, provide just that. More security through their insights, experience, knowledge, hands-on support, and value-added services. 
Having said that, let us explore the value of internalising financial services consulting and the support of a financial consultant.

Finance advisory can help you mitigate risks

Risk recognition and mitigation have long been necessary components of any business operating in the highly competitive global arena that is today’s market.

What is often overlooked are the many ways risks can present themselves. It is more than simply crises and external challenges that threaten a business.

One key way a business may destabilise and leave itself vulnerable to financial failure is by relying too heavily on a few sources of income. This is a misstep that many smaller businesses are likely to make. Client dependence can leave the future of your company dependent on just a couple of major clients, which is a precarious position to be in.  

This may seem like an irreversible circumstance. A financial advisor can, however, help you investigate new sources of income and channels through which you can solidify your standing and secure your future. 

Financial advisors can help you formulate the right strategies 

Uncertainty about the future has possibly never been higher than it is post-COVID-19. This uncertainty often leaves companies questioning their next steps and second-guessing their approaches. 

This is not only inefficient, but it can also contribute to your business being bypassed by its competitors.  

The best way to counteract uncertainty is with an actionable strategy. A step that financial advisory can help you achieve.

Not only is a financial advisor familiar with market trends and behaviours, but they are also able to leverage their experience with other companies. They do all this while delivering strategies that are aimed at helping you achieve specific growth objectives.

A common obstacle a business faces is in balancing quality alongside growth. A tradeoff in quality often seems inevitable when most businesses struggle to scale their operations at an ideal pace. Regular financial advisory, however, can help you plot your trajectory and prepare your functions to meet future needs without straining existing resources.  

Regular advisory can help you get ahead of the competition

Playing to win in the current market is no easy feat. 

Just as soon as new technology comes out it appears to be replaced by more current innovation. Just when a company gets comfortable, it could be hit by the next great crisis like COVID-19. 

Staying competitive, let alone getting ahead of the curve, is a goal that a business must continue setting itself. Complacency and routine could very easily spell ruin for any modern organisation. 

Seeking advisory for your finance function is an easy way for you to inject new ideas into your company systems and maintain swift responsiveness at all times.

Although financial advisory services seem specialised and consequently restricted to simply adding value to your finance function, the insights of these professionals can help you optimise your business as a whole. 

From implementing Finance 4.0 in Belgium to more general services such as training, outsourcing, maturity assessments, and supply chain management—the role of a financial advisor is to add value. 

By creating higher value addition opportunities for your company, you enjoy greater success in every area of your operations. 

Why should finance advisory be a regular, internal process?

Viewing the intervention of a financial advisor as an external interference puts the benefits received through their knowledge in a different light.

Embracing financial advisory as a regular, internal process will help you build a business framework that is evolving, improving, and fine-tuning itself at a regular pace.

When leveraged to its full potential, hands-on advisory can help you reimagine the possibilities of your business future and open your company up to new opportunities.