What is equity or financial consulting and how can this service help your business?

When income goes up and down like a roller coaster, it’s time to act, right? It is that it is impossible to achieve business sustainability without seeking solutions to economic problems. No wonder financial consulting is so important.

What is a financial consultancy?

In a business context, financial or equity consulting is an activity in which a qualified person evaluates the company’s finances and indicates strategies to make them more organized.

What exactly does a equity consultant do?

Provides a variety of financial products and services to individuals, families, businesses, and other organizations. Most of the time a long-term relationship is established with him.

This interaction includes ongoing services such as: investment portfolio management, cash flow or annual financial planning reviews. The relationship between the consultant and the entrepreneur usually becomes closer as both parties perceive the benefits that it generates.

For the consultant to be successful in addressing the client’s needs, objectives and requirements, they need to understand and know the client well. Then, and according to these criteria, the service is personalized to achieve the highest possible profitability.

This professional may also direct the buying and selling of stocks/bonds for the client. Some work for consulting firms that focus on the financial needs of specific industries or companies.

It is essential to have the support of someone who makes objective decisions based on concrete information — even because financial analysis implies having to consider a large number of variables that only a professional in the area is capable of developing.

Most financial advisers offer the first free consultation, and the cooperation agreement is usually established during this.

Take a look at this list of responsibilities below, which are as diversified as they are complex:

  1. Helps in the planning and development of the budget, to ensure compliance with current rules, regulations and laws.
  2. Collect and gather data and information, to prepare, recommend and predict future operations and financial plans.
  3. Analyzes and interprets financial information, to study variations, review them and present them to the administration, thus facilitating better decision-making.
  4. Operates on complex projects that require in-depth evaluation.
  5. Issues effective reports and develops processes in accordance with the policies, procedures and standards of the organization.
  6. Provides guidance on investments, asset allocation, savings, taxes, retirement, and capital planning.
  7. Analyze risk tolerance.
  8. Develops financial strategies to guide the client in setting their goals.
  9. Create goals corresponding to the situation with the relevant plans.
  10. Monitor your financial situation by tracking changes in your budget and life circumstances.
  11. Analyze the results of the financial plan.
  12. Identifies and evaluates new financial strategies.
  13. Manage current and future tax payments.
  14. Recommends changes in goals and plans.

What are the main services of a financial consultancy?

It is clear that each consultant has his own working method. However, we list the main services provided in the activity.

Financial planning

The most common is financial planning. Plans are drawn up whose objective is to achieve the long-awaited economic health of the business. This planning includes cost control, budget analysis and defined strategies. It is very useful to record short, medium and long term goals.

Investment portfolio management

Financial consultants assume responsibility for managing the client’s investment portfolio. There are entrepreneurs who like to participate in decisions personally, while others prefer to leave this task to the advisor.

Tax planning

In the world of finance, in almost everything you have to consider taxes and tax planning. Although an accountant is needed to do effective tax work , a consultant with knowledge of tax law is a great advantage.

Real estate planning

It includes the organization and accumulation of wealth that comes from real estate, and contemplates everything from its conservation to its eventual distribution to the beneficiaries of the property. 

Cash flow

Good cash flow management is at the heart of financial planning. In other words, money should always be in the spotlight so that you can meet your own obligations throughout the day.

Insurance and risk mitigation

Financial planning is never complete without considering and taking into account the risks we face in life, such as premature death, disability, or unexpected loss of property or other assets.

What are the benefits of a financial consultancy?

Consulting professionals often work with several companies at the same time and, precisely because thanks to this they solve a very considerable variety of problems of all kinds, they can provide you with different perspectives based on their experience.

By private equity consulting services, you can have a group of qualified professionals who do everything from simple cash flow analysis to financing organizational structures.

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