Operating a small business in Wollongong entails a significant amount of multitasking- from managing legal matters and human resources, to handling everyday operations. Amidst these responsibilities, your company’s financial health often takes a back seat. An experienced financial planner in Wollongong plays a crucial role in bridging this gap, offering invaluable support essential for the success of your business. Keep reading to uncover why and how your company could thrive through their expertise.
The Value of Partnership
Wondering “What does a financial planner do” ?
A financial planner offers comprehensive financial guidance and expertise tailored to your business’s needs and goals. Here’s how partnering with a financial planner can benefit your Wollongong business:
- Financial planners expertly help you explore insurance options to safeguard your business and maintain operations during unexpected events.
- They also help shape strategies for exiting the business and facilitating smooth transitions (whether through sales or shifts in ownership).
- They aid in creating employee benefits programs, which can improve staff retention and contribute to your business’s overall financial well-being.
- Through strategic financial guidance, they support the continuous growth and long-term viability of the business, benefiting owners, employees, and other stakeholders.
Consider teaming up with a local financial planner in Wollongong with a deep understanding of the local business landscape. This insight allows them to tailor financial services and strategies that effectively address the unique needs of your business, ensuring informed financial guidance.
Let’s take a closer look at the benefits of using professional financial planning services.
Guidance on Insurance Planning
Small business owners have various insurance options for protection. General liability insurance covers injuries, customer property damage, and legal challenges like defamation.
Financial planners are crucial in managing risks by advising on important insurance policies like life, disability, and key person insurance. Additionally, financial planners evaluate the need for error and omissions (E&O) insurance. This shields businesses from negligence claims and damages due to professional oversight.
A financial planner can also assess the necessity for cyber liability coverage, protecting your business against digital threats and data breaches.
Optimising Financial Management
Predicting a business’s cash flow is a significant challenge. That’s why financial planners work closely with their clients to grasp the business’s current status, growth ambitions, and the funds required for expansion.
While investing surplus funds is smart, it’s just as important to keep that capital accessible and safe, steering clear of risky ventures. A financial planner or wealth advisor can help you make that decision.
They can also help businesses navigate seasonal fluctuations to maintain steady cash flow year-round. For example, a wedding planning business may thrive in summer but slow down in winter. Financial advisors help companies manage finances to ensure enough liquidity during quieter periods while maximising opportunities in peak seasons.
Developing Employee Benefits Programs
Many Australian businesses offer superannuation funds or other retirement savings plans to help employees prepare for the future. Setting up these plans involves extensive reporting. Financial planners help companies manage these plans and guide employees on their options.
Retirement Benefits for Small Businesses in Australia
When considering offering retirement benefits within your Australian small business, you need to assess several key factors:
- Consider the costs of starting and maintaining a superannuation fund.
- Decide if you can match employee contributions to make the retirement plan more attractive.
- Evaluate how much employees value retirement benefits and how this affects their satisfaction.
Additional Benefits: Implementing employee retirement schemes and other benefits is an effective way for businesses to reduce turnover and retain valuable team members. For example, some small businesses offer subsidised health insurance premiums or provide income protection insurance for all staff members. Financial planners assess the costs of these benefits and help you evaluate their advantages.
Moreover, financial advisors can guide you on additional benefits like flexible working conditions, ESOPs, educational assistance, and wellness programs. They provide advice on tax implications and make sure you stay compliant. They also offer advice on cost and returns, helping you select the best benefits package.
Strategising Business Exits
Eventually, every business owner will need to exit their venture, whether by selling, passing it on to family, or closing due to financial challenges. This process involves complex considerations like business valuation, employee benefits impact, and tax implications. Financial planners play a key role in this transition, offering expert advice to ensure optimal outcomes for the existing owner.
In cases where a business is no longer financially viable, emotionally invested owners may struggle to face reality. Financial planners provide a clear-eyed assessment of the finances, communicating hard truths when necessary. They have the expertise to foresee potential financial difficulties by analysing cash flow trends and projections, often spotting problems before they become apparent.
Post-Business Financial Management
After exiting a business, a former owner often finds themselves with substantial financial resources to manage. At this stage, a financial planner typically takes on the conventional role of overseeing these investments and finding ways to replace the income previously generated by the business. This includes planning for the succession of wealth, preparing for wealth transfer, and formulating strategies for drawing on retirement benefits.
Choosing the Best Option for Your Business with G.M. Egan & Co.
Wondering where to turn for help with financial planning in Wollongong?
At G.M. Egan & Co., we understand the vital connection between your financial strategy and business goals. Whether you need precise bookkeeping, strategic tax planning, or a blend of both, our seasoned experts deliver the guidance and expertise essential for your success.
Emphasising clear communication, collaboration, and shared understanding, we foster a productive partnership that propels your business toward its goals. Reach out to us today to get started.