Many people consider accounting and financial advisors the same thing. They think their accountant can manage both- their business accounting and financial planning but in fact, both professions complement each other. Neither accountant nor the financial advisor can accomplish the tasks of the other. Every business person will need help to manage money for their business. In this situation, an accountant, as well as a financial advisor, can offer you the best assistance but which profession can be the best option to opt for facilitating your specific need? It would be hard to know the exact answer.
Accountants are associated with tax filing. Having expertise in handling business financial details, an accountant handles your bookkeeping and business records. Having someone you can stay assured that your books are closed each month ensures that you are having an expert to oversee your day-to-day cash flow and to take care of your taxes.
Financial advisors are required to resolve business matters like doing the right investments and expanding the business. They help you get a secured future and avoid creating risky mistakes. An expert advisor can offer you the best guidance to help you make the right business decisions that can further cause a good flow of chances across your company.
What Do Both Accountants And Financial Advisors Do?
Well, accountants and financial advisors both are highly qualified and skilled professionals. Indeed there are some intersections in the tasks they do. Each respective personnel helps you arrange different things.
An Accountant Helps You In-
- Proper Tax Filing
- Handling audits
- Making the most on tax benefits; like tax deductions
- Maintaining financial statements
- Looking after the overall business depreciation and expenses
- Taking care of business revenue and expenditure that can impact the profitability of your company
A Financial Advisor Helps You In-
- Making the right investments
- Resolving pending debts
- Broadening the business
- Protecting assets
- Administrating long-term risks
A financial advisor recognizes appropriate tax codes in a way he/she could never forget, whereas an accountant will recognize the tiniest tax ins and outs that can make all the difference for your business. Above everything, an accountant can offer you the most prominent tax preparation services.
A financial advisor gives business-appropriate advice and saves a lot of resources by making wise investments and avoiding risks. An accountant, moreover, prepares the company’s taxes and figure out huge resources in the form of additional savings through small business deductions.
Fundamental Roles Played By Both
The roles played by an accountant and a financial advisor complement each other when considering the management of a company.
As an instant instance, if you are planning to expand your business or say when adding a second business address in or outside your state your financial advisor will give you the best guidance about investments and debts you may need to tackle to make the expansion procedure happen successfully. The advisor will notify you about the possible picture of your finances and risks you perhaps have never considered. Moreover, the advisor will help you set a workable budget to plan out the new part of your business.
Simultaneously, your accountant will correctly manage all your business data. The data include payroll, revenue, and daily bookkeeping. The details can spoil your plans if not kept correctly. Ones you buy a new property or rent one your accountant will handle its impact on your financial image. Being qualified with the tax laws for the area you want to expand your business in the accountant will ultimately alert you to the tax breaks that probably come with the business expansion.
The right advice
To ensure a smooth financial track, the financial advisor and the accountant you have employed should work together with you. Also, some accountants can serve you as a good financial advisor. It is vital to trust both personnel.
In simple terms, your financial advisor should bring the issues to light in the easiest way possible to make you understand each point properly. You need to learn the risks of each investment prior you make it. When talking about the accountants, the person you hire should be well qualified with everything about corporate tax Etobicoke to offer you the best understanding about how your books are being maintained and get you the right and timely information you may need to input in your daily business routine.
Both accountant and financial advisor are equally important so you need to be very careful while making the hiring decision. Ask your closed and known people for the best recommendations, and opt for the right person that fits your personal and professional situation appropriately and help you control your financial future.
Although your accountant can offer you some financial advice depending on your existing debit and credit accounts, he/she may not have the liberty to offer you the right ways to spend or invest your money. The person can only make you understand the sections that could be a future risk and also the areas that could be more flexible to focus more on.
In the matter of getting the appropriate advice about investments, an accountant may not be the right person to help.
Sharing your confidence in terms of money is a huge decision. The more you qualify yourself about the accountant or financial advisor you hire to control and build your assets, the better chance you will get to experience consistent progress and growth.
Start your journey towards financial freedom with Accounting Mississauga Billah and Associates Inc. the name you can trust for skilled and highly experienced accountants in Mississauga and other cities across GTA. Contact us for more information.