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Building a Financial Team posted on Thursday, 28 January 2010

Now is the time to surround yourself with a strong team of advisors.

As an entrepreneur, you may find it more essential than ever to make sure you have access to professional advice to help you build or, in some cases, rebuild your business. Now is the time to surround yourself with a strong team of advisors.

Your financial team may consist of several professionals, from a trusted banker and knowledgeable certified public accountant (CPA) to an attorney and financial advisor. While finding the most qualified advisors may require some research, once you have your team in place, you will reap the benefits.

Here are examples of some of the professionals who may help you navigate the economic climate and changing tax rules as you look to strengthen or grow your business:

• Certified Public Accountant (CPA) – A CPA is a highly trained accounting professional whose primary job is to provide accurate advice on financial accounting income taxation. As tax rules and regulations change every year, your CPA plays an important role in keeping you current. A CPA may also provide advice on how to set up your business and the different tax structures that different types of businesses have. For example, an LLC (limited liability company) has a different taxation structure than an S Corporation (corporation with one to 100 shareholders). Your CPA may be able to guide you through the process of setting up your business based on the type of work you do and how you earn money, as well as how you plan to pay yourself and your taxes. Your local banker, attorney and business associates may also have recommendations for a CPA, but you should always check references and backgrounds once an introduction is made.

• Banker – Your banker can help advise you on long-term and short-term financial plans for your company’s financing and cash management. Taking time to develop a relationship with your bankers is beneficial. Your banker may also help you create customized plans to help you meet your business goals and personal financial goals. During challenging economic times, your banker is an invaluable resource to help you learn about new financial tools that may benefit your business. Your banker can help keep you apprised of current interest rates, loan options, etc., and is a wise resource for referrals to other professionals on your financial team.

• Attorney – A legal professional specializing in small business needs, such as contracts and agreements, is indispensible. An attorney can also help you structure your business, file the proper documentation with state agencies and advise you on business licenses needed, legal requirements for employees, etc. Just like your CPA, your attorney needs to stay in contact with and work closely with your other team members.

• Financial/Retirement Advisor – A financial or retirement advisor can provide advice regarding stocks, bonds, mutual funds and other investments and should be objective, very knowledgeable and present you with options. A financial adviser, as with all of the professionals on your team, should review your life goals to help decide which investments make sense for you.

A strong financial team includes professionals whose knowledge and skills complement each other. While you trust and value their opinions, the ultimate decision maker is you. Your team should understand and share your vision and goals for your business and understand your personal financial goals as well. Knowing you have a dependable team in place can help you weather the choppy financial seas of today and hopefully provide smooth sailing for tomorrow.

Amy Taylor is the Priority Banking manager for the San Diego Main Branch of Union Bank, N.A. Union Bank, N.A., is a full-service commercial bank providing an array of financial services to individuals, small businesses, middle-market companies, and major corporations. Visit www.unionbank.com for more information.

Posted by Amy Taylor