A Guide to Financial Planners for Small Business Owners

Do you need a financial advisor for your small business? Check out our guide for all the answers to your FAQs.

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August 2, 2022
Chloe Mulliner
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Reading time about 7 min

If you’re a small business owner, you’ve probably already got your hands in many pots. You’re likely spending night and day analyzing your business strategies, looking for new ways to generate income, fine-tuning your promotional marketing plans, and ensuring your employees are happy, among various other duties.

With so many responsibilities, there’s a good chance you’re spread thin when it comes time to sort out all the financial details of your small business. But just because you don’t have the time or expertise to dive into the financial side of your business doesn’t mean you should let it go by the wayside.

The good news is that there are professionals who specialize in helping small business owners make financially savvy decisions. Whether you’re still working on your business model or looking for retirement options, a small business financial advisor can help.

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Financial Planners for Small Business Owners

Does every small business need a financial advisor? And what do financial advisors do anyway? It’s ok if you don’t know the answers to these questions. After all, financial management can be confusing. That’s why we’ve created a handy guide that answers all your questions on basic financial management for small businesses to help ensure your organization is on track toward success.

Why Do Small Business Owners Seek Financial Advice?

Let’s face it; understanding the world of finance, especially as it relates to your business, can be a challenge. There are so many rules, regulations, and nuances that it can feel like an uphill battle trying to make sense of it all. Not to mention, if you’re running your own small business, who actually has the time to dedicate to figuring it all out?

If you’re looking for help understanding the finances for your small business, then it might be time to turn to a professional financial advisor for assistance.

What Does a Financial Advisor Actually Do?

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A financial advisor, also known as a financial planner, is a professional who provides basic financial advice and management for small businesses. They’re responsible for equipping you and your small business with expert advice on all sorts of money matters, which includes everything from your investment strategies to retirement plans.

When you work with a financial planner, they’ll analyze every aspect of your business, assessing your business structure, reviewing your cash flow, and evaluating your risk management to determine the best financial opportunities for you and your company.

In addition to identifying the ways your company can make a profit, a small business financial advisor can help you better understand the ins and outs of financial management and growth. Whether you have questions about business start-up costs or insurance plans, your advisor will offer guidance and recommendations based on your unique financial situation.

What Services Does a Financial Advisor Provide?

Small business owners succeeding

Financial planners for small business owners offer a range of services related to helping you increase your capital and deciding what to do with that capital.

After getting to know a small business and what it offers, many financial planners will provide advice about:

  • The best business structure for the company
  • Integrating (or not integrating) business and personal finances
  • Retirement plans
  • Investments
  • Insurance plans


Business Structure & Taxes

You’ve been so caught up running your business that you didn’t have time to research all the available business structures, so you just went with the one that sounded familiar. What’s the big deal, right?

Well, it is kind of a big deal when it comes time to do your taxes. Not only that, but if you choose the incorrect one, it could have financial and legal repercussions. That’s why it’s important to work with a financial advisor to get guidance on the best business structure according to the specific kind of small business you’re overseeing.


Personal & Business Financial Integration

A lot of business owners have questions about whether or not to merge their personal and business expenses. And that’s where a financial advisor for small business owners comes into play. For some small businesses, it makes sense to merge their accounts—in fact, it may be required—but in others, it’s better to keep them separate. Based on your individual business (and business structure), a financial planner can help determine the best solution for you and how to go about implementing it.


Retirement Plans

If you’re just starting your own small business, retirement likely feels like something way off in the distance. But the truth is, you’re not doing yourself any favors if you’re ignoring your retirement plans. Retirement will come up sooner than you realize, and you need to be ready for it when it does.

Now is the time to start planning for retirement, such as opening a retirement account and making succession plans. A financial planner for small businesses specializes in helping you financially prepare for the years ahead.



Alright, you’re gaining some good capital through your small business, so how do you make that capital grow? By making good investments. Based on your business goals and risk tolerance, a financial advisor can help you build a healthy and diverse investment portfolio.


Insurance Plans

Sorting out insurance plans for you and your business might feel like a headache, but it’s crucial that you choose the right insurance plans that will protect you, your business, and your employees. A financial planner will review your personal and business insurance policies to ensure you’re properly covered.

What Else Can a Financial Advisor Do?

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Financial advisors can offer a wealth of knowledge and recommendations when it comes to small business financials. Among other responsibilities, they can:

  • Determine if you’re overpaying yourself
  • Track foreign exchange movements
  • Keep an eye on interest rates
  • Conduct market research
  • Analyze your profits and losses
  • Offer savings strategies
  • Evaluate your cash flow
  • Help manage your business goals


Do I Need a Financial Advisor?

Hiring a financial advisor to oversee your small business isn’t required by any means, but it’s highly recommended. After all, you have a lot to focus on when it comes to running your business, so why not let a professional take care of the financial side?

With the help of a professional, you’ll have more time to focus on the aspects of your business that interest and excite you while your advisor takes care of the basic financial management of your small business. When you hire an advisor, you can rest easy knowing the financial health of your business is in good hands.


Do I Still Need a Financial Advisor If I Am Familiar with Financial Management?

The choice is really up to you. If you have the expertise and time to dedicate to managing your personal and business finances, then be our guest. And to be fair, it’s really not rocket science. Many small business owners simply turn to a financial advisor out of ease and convenience, so there’s one less thing for them to sort out, but that certainly doesn’t mean you have to follow suit.

A simple Google search will provide you with tons of material and guidance on financial management. What’s more, you can even find small business financial software that can lend you a hand. And if you’re not ready to commit to a full-on financial advisor, you can always schedule an appointment with a professional for a one-time consultation.


How Can I Find a Small Business Financial Advisor?

Now that you’ve decided to hire an advisor, it’s time to find one who best suits you and your small business needs. So, where do you track one down?

Of course, you can always head to the trusty internet for listings of financial planners in your area, but we suggest turning to other small business owners for recommendations first. Ask a fellow small business owner who their financial advisor is and see if any small business owners in your neighborhood have references.

Working off a recommendation is a great way to narrow down your search, but if you don’t receive any leads this way, consider joining a small business organization, such as your local chamber of commerce, to connect with professionals in your area.


How Do I Choose a Financial Planner for Small Business Owners?

Whether you’re sorting through an online listing or reviewing your recommendations, you’ll want to keep a few things in mind when vetting a potential advisor.

First, it’s important to inquire about whether the financial planner is a fiduciary. If they’re a fiduciary, it means they legally and ethically act in their clients’ best interests ahead of their own. When you hire a fiduciary, you won’t have to worry about them making decisions for their own personal gain.

Next, we recommend determining how the financial advisor plans to charge you. Some are commission-based, while others charge a flat fee. To avoid any gray areas or conflicts of interest, many small business owners prefer to go with a financial advisor who sets a flat fee, which helps keep things transparent.

And finally, be sure to ask if they are a Certified Financial Planner (CFP), which means they have the proper certifications to advise you. A CFP has undergone years of training, completed rigorous coursework, passed an examination, and met the requirements set forth by the Board. It’s important to note that not all financial advisors are CFPs.

Find Out More about EZ Texting

At EZ Texting, we understand there’s more to running your small business than just having a stellar marketing solution. Yes, our EZ Texting platform can do wonders for your marketing strategy, but that’s only one aspect of business management. For example, you need to determine if you need an accountant and decide if you should get a business loan, among various other business decisions. Check out our blog for more business advice, and consider exploring our no-risk free trial to see if EZ Texting is the right fit for you.

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