By Phoenix Jackson
Agribusiness is usually complex and labour intensive, therefore efficiencies should be sought by every possible means. This includes handling finances and making financial decisions.
“From policy shifts to competitive pressures and food safety issues, there is always some unpredictability in agricultural industries. With the help of a seasoned agricultural financial consultant, maintaining your competitiveness, expanding your supply network, establishing a solid long-term financial strategy, and creating intergenerational wealth is made easier and possible,” says senior accountant Max Liane of Accountants Brisbane.
Many farms operate on a tight budget; no farmer enjoys spending money they don\’t have to. However, working with a professional financial consultant offers numerous benefits. If you understand these benefits, you\’ll be better prepared to decide whether you want to work with one.
Start by reading some of these top benefits below.
A Financial Consultant Has Fresh Perspectives and Extensive Experience
Consider the value of a person who isn\’t emotionally attached to your business and is competent to assess its financial performance. Working with a professional financial consultant who has expertise in the agriculture industry can have numerous advantages for a farm business. They can assist you in setting priorities for your financial objectives, analyse your business operations (revenues and expenditures) and capital management (equity, assets, and liabilities) at a more detailed level.
A Financial Consultant Enhances Your Financial Management
Financial consultants are well-versed in identifying, measuring, analysing, and interpreting financial data to help farm owners manage their financial operations successfully. Additionally, they have exposure to, knowledge of, and expertise with a wide range of financial activities.
Thus, it would be best to rely on a financial consultant\’s expertise which is frequently more helpful to each unique business service than the restricted experience of a sole owner or manager who is only acquainted with their own business/es.
A Financial Consultant Helps Develop Your Financial Strategies
A professional agribusiness financial consultant can help you develop and monitor financial plans (capital budget), compare estimates to actual outcomes, and determine whether your business is on track. From there, these professionals help in formulating a strategy drawn from the findings.
Moreover, consultants can help you establish short and long-term financial objectives for your agricultural business.
A Financial Consultant Helps Develop Business Value
Working with a consultant may be beneficial if you\’re calculating the value of your farm business. Even if you\’re not planning to sell in the near future, understanding the value will help you develop your farm asset (business) and increase your wealth, for when you do exit.
With that said, the best way to evaluate your agricultural business\’ performance is to value it regularly (every year or two). A professional agribusiness financial consultant can help you navigate the process while identifying possible areas to improve and, at the same time, minimise risks along the way.
A Financial Consultant Assists During Financial Difficulties
Financial consultants are often called upon to help with financial difficulties (ownership changes, working capital issues, expansions, negative profitability, etc.). Financial advisors are usually requested to assist in putting together proposals for lenders once the businesses are in distress, when farmers are seeking new financing alternatives, or when their activities have exceeded their existing lenders appetite.
Grow Toward a Prosperous Future With Anson Advisory
Financial expertise is valuable to any sized business. Attempting DIY financial advice will lead to unnecessary or ‘dumb’ taxes, not maximising profitability and therefore wealth, and making decisions that may impair or hamper your business.
Leverage financial advisors\’ knowledge, skills, and experience to increase your financial management skills and apply them to your business situation. Consultants ply their trade all day, every day, so know details the average business owner will not. This investment will rapidly improve business results, significantly improving wealth and providing ease and financial management ability.
Reach out to Anson Advisory and let us help you grow your business towards a prosperous future.