Financial consulting and advising are both services that help navigate a company toward a prosperous future.
What is the difference between consulting and advising?
Several differences separate the two types of outsourced financial monitoring, but the largest difference is in the length of the relationship.
Typically, consultants are brought in to address a specific problem during a particular time. The consultant reviews the situation and assesses all factors and leads the company toward a decision that is the healthiest for the business overall.
An advisor, on the other hand, works with a company on a long-term basis, pursuing pre-set goals from the initial relationship genesis. During a troubling time, an advisor might suggest that a company bring in a consultant to provide short-term relief.
Other Differences between financial advisors and financial consulting services:
Companies retain more independence when working with a financial consultant. The consultant is brought on for a specific problem or goal, so they are not going to meddle in peripheral financial or business affairs. The relationship is transactional, whereas an advisor will dive into the many areas of your company to help you achieve more.
The nature of a consulting relationship is short, so meetings will be frequent until the problem is solved. Advisors meet less frequently, but consistently throughout the year – often once a quarter.
Approaching the problem
Consultants approach the problem head-on; they look to identify the root issue, clear it and get your company back on its feet. There is little consideration of the company at a comprehensive level. Advisors approach each problem and new goal from the perspective of the business’s long-term goals.
Consultants will introduce you to IT solutions that can fix the problem(s) your company is facing. Although the software is perfectly applicable to the problem, there might not be much hands-on help to get you intimately acquainted with the new system. Advisors get to know your IT solutions in use and work with you to adapt to the new technology so that you can use it toward achieving long-term business goals and objectives.
Other financial support officers:
- Financial Planner. A financial planner is certified to help you reach specific goals in their studied areas of expertise. Financial planners are best suited for long-term projects and relationships.
- Financial coach. A financial coach will act similarly to a financial consultant, but also display behaviors of a coach, including motivating you toward your goals, determining fears holding you back and clearing them and implementing discipline in your regular work routine so that you stay on track to succeed.
How to determine the right leadership for your company:
- Write down a list of your financial goals, whether it is generating a certain annual profit, being able to pay employees a specific wage or salary or making enough to develop a new part of the business.
- Come up with your own plan for how to achieve your goals and write down the necessary steps. As you write out what needs to happen or realize you aren’t sure how to go about attaining your financial objectives, the person or team you need will become clear.
- If you aren’t sure about your goals and needs or who to hire for help, meet with a financial consultant or coach. This person can then advise you on what type of financial support you need.
Are you in need of financial advising or consulting? Reach out to our team at Quantum FBI to learn more about financial solutions and support options while you stride toward the long-term success and health of your company. We look forward to helping you!