business advisory servicesbusiness advisory services

What are Business Advisory Services?

  • November 3rd, 2021
  • Mitchell Ball

Decision-making is a vital component to the sustained success of any business. Each phase of the business cycle presents a new set of challenges that may hinder the progress of an organisation. Similarly, the changing landscape of business and the digital transformation of the workplace continue to present new obstacles.

With future success on the line, companies are utilising business advisory services to obtain expert advice to make informed strategic decisions that are used as the foundation of future success. With specialist industry knowledge, business advisors can provide valuable insights that are both helpful and objective.

What is a business advisory service?

Business advisory is where a financial professional provides guidance and expert advice to the decision makers of an organisation. There is no limit on the size or type of business that can benefit from advisory services as they can be utilised to overcome problems across all business areas. We have compiled a list of some of the most popular business advisory services for small and medium enterprises. They include:

  • Strategic Business Planning: An effective business plan and associated strategies are the building blocks for long term success. By getting a deep understanding of your business an advisor can evaluate your current position and identify any new opportunities.
  • Financing: It is essential to identify the most suitable source of financing for your needs. A financial expert can provide recommendations on all areas of financing including debt, equity and internal.
  • Organisational Structure: Having the right organisational structure allows a business to satisfy its operational needs in the most efficient manner. It will also allow you to expand, grow and transform with minimal interruptions where necessary.
  • Digital Transformation: Ties in with organisational structure above and is becoming a critical area of focus for a growing number of industries. The rapid progression of technology and its need for adoption in the workplace has placed significant pressure on decision-makers to act.
  • Cash Flow Management: A lack of working capital or cash flow can place unnecessary financial pressure on any business and potentially lead to insolvent trading. A defined cash flow management will ensure that you meet financial commitments on time and place you in a position to capitalise on emerging business opportunities.
  • Finance and Accounting: Accurate bookkeeping, tax compliance, updated financial statements, consistent evaluation of financial performance and forecasting are essential to every business. With many bases to cover, business advisory services can set you on the right path. They are also useful when requiring advice on specialist services such as forensic accounting and the integration of cloud accounting.
  • Transactions: Due diligence and accurate valuations are vital in major business transactions. This is increasingly important in mergers and acquisitions that involve extremely valuable assets.

These are among the key aspects that insolvency experts explore when conducting a restructure and turnaround. It should also be noted that business advisory services are not limited to businesses that are experiencing financial difficulties but all organisations that are proactively financial prosperity.

What is the role of a business advisor?

A business advisor is a financial professional that is employed by an organisation to provide expert advice and recommendations. Advisors have extensive knowledge across all facets of business but there is also the presence of niche advisors who focus on specific areas. With a large team of dedicated experts, Australian Debt Solvers has professional business advisors who focus on specific subject matter including corporate insolvency, liquidation and business restructuring.

Using their subject expertise and industry experience an advisor will carefully undertake the advisory process. This process will vary on a case-by-case basis depending on the challenges and requirements of a particular business. In general, a business advisor will:

  1. Collect Data: This is the discovery phase where the advisor will aim to get a complete understanding of the business and its components. This includes all financial and operational information to get a clear picture of the present situation and identify areas that need attention.
  2. Analysis: Thorough research and analysis of industry with attention given to the current economic landscape. This will help identify strengths, weaknesses, threats and potential opportunities.
  3. Strategy: Problem-solving phase where business acumen is utilised to provide detailed advice and recommendations including outcomes and how that will be achieved.
  4. Implementation: Business advisors specialise in implementing business strategies. They will set goals, ensure that the strategy is aligned with the vision of the organisation, track progress and provide guidance on how to keep employees connected to the new strategy.
  5. Evaluation: Performance maintenance is achieved using a periodic review which may result in changes to the strategy to promote continuous improvement.

Why do you need a business advisor?

Business advisors will be the first to admit that they do not know your business better than you do which is why they work closely with Directors to get a complete understanding of a business. This allows them to identify areas of concern and use their expertise to recommend changes that will bring significant benefits to your business. Here are some of the reasons why a business advisor would be able to help you overcome business challenges:

  • Independent Advice: Despite their standing within a company, Directors often fail to recognise issues as it often means that they may be at fault. As an independent party a business advisor can provide objective advice to help deal with any challenges.
  • Specialist Knowledge: It is very difficult for Directors to be abreast of all relevant information that may impact their business. Business advisors are industry specialists who have extensive knowledge on current industry and economic trends along with any legislative changes.
  • Experience: As organisations progress through the business cycle, they often encounter challenges for the first time. In contrast, advisors help businesses overcome these challenges daily. They have the requisite knowledge to identify an issue and the past experience to advise on how to best deal with them.
  • New Business Opportunities: With a wealth of knowledge and experience a business advisor can help identify new business opportunities that can help grow your business.
  • Sustained Success: Advancements in technology and a changing economic environment mean that businesses must also transform to have sustained success. Through the use of business advisory services you can stay one step ahead of your competition.

What is business advisory accounting?

A substantial amount of business advisory is related to financial activities. Business advisory accounting focuses on two key areas: compliance and advisory. The compliance component concentrates on tax-related items such as financial statements, income tax returns and business activity statements (BAS).

The emphasis of business advisory accounting shifts to forward-thinking and future planning. It includes tax planning, financial modelling, sales and acquisitions along with potential exit strategies and succession planning. Business advisory accountants are experts in setting up the financial framework that will govern how a business operates and prevent you from making some of the most common business mistakes picked up by the ATO.

Taking the above into consideration it is hard to deny the value of business advisory services for small and medium enterprises. Contact Australian Debt Solvers for a free consultation with an industry expert. Our team of professional business advisors can help maximise the potential of your business.

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