10 Reasons to Hire a Freelance Finance Consultant (Fast)

Financial decisions are the backbone of businesses, as they can have a significant impact on long-term success.

In 2021, a survey by PR Newswire found that 24% of US businesses were considering hiring a freelance financial consultant. Thus, it is a good thing that business owners are beginning to realize the importance of financial consultants.

Whether you’re a startup or an established business, financial advisors and consultants are necessary. Such consulting provides you with adequate financial planning, minimizing risks.

An expert will provide high-level assistance in helping your business navigate recent market trends.

While companies can set up an in-house finance team, hiring freelancers can deliver even higher-quality services and greater flexibility.

Such freelance corporate finance consultants conduct in-depth financial analysis and provide critical strategies to help your business grow. The best part? This type of expertise often costs less.

Why should you hire a freelance financial consultant?

In recent times, there has been a significant shift in the consulting industry. More experts are ditching their full-time corporate finance jobs to become freelancers. They still take on the financial analysis job, but this time they prefer to do so with greater flexibility.

And for businesses seeking a financial advisor or consultant to help develop quality financial planning, freelancers are a go-to option. So, here’s why freelance consultants are a better option over an in-house team or settling for a big consulting firm.

1. Get experienced advice

Allowing a big consulting firm to handle the entire project for your company is a good option. But this may sometimes come with a degree of narrow-mindedness and “groupthink.”

Nevertheless, having a few freelance consultants can help provide greater insights from varying professional backgrounds.

The reason is that these freelance professionals have worked with different businesses in the past, and perhaps across multiple sectors. Whether as freelance financial analysts or bookkeepers, they must have developed toolkits that worked for other businesses.

While keeping up with updated trends, they provide advice and must have tried various investment opportunities.

So, the diversity of your team of freelancers will provide myriad perspectives, proffering effective solutions that can help you achieve your organizational goals sooner.

This way, you can avoid tunnel vision and costly mistakes, adapt to market changes easily, and get fresh ideas that give your business a competitive edge.

2. Hire handpicked specialists

The freelance market holds various specialized expertise from across different parts of the world. So when you decide to hire freelance financial analysts or consultants, you get the chance to pick the best hands out there.

You have better control of the individuals who work on your project, compared to when you settle for a single consulting firm.

Also, compared to an in-house team, you can easily find the specific talent that suits each project. For instance, you can carefully choose a tax strategist to handle your business tax issues or a financial controller for clean-ups.

And for niches that are not locally available, you can venture into the global market to find an expert talent.

Hiring specialists has become easier thanks to various freelance job platforms. With popular platforms like Upwork and Fiverr, you can find experts under one roof.

Thus, you can search from the pool of talents, handpicking the best possible freelance consultants that can help achieve your organizational goals.

Since long-term commitments are unnecessary, you can ditch full-time specialists and hire experts only when needed. This works well in seasons for auditing, forecasting, due diligence, system upgrades, and taxation, ensuring you spend less.

3. Cost-effective resourcing

The cost of patronizing big consultancy firms or maintaining an in-house finance team is usually very high.

Often, this is a serious issue for startups and medium-sized businesses. The operations at such organizational setups require a judicious management of business expenditure.

The best idea is to ditch a full-time consultant team in favor of freelance services. Notably, you can do this without spending excessively out of your business budget.

Since these freelancers already have the skills and experience, they will surely do a great job. With freelance experts, you are only paying for the services offered.

There’s no need for other benefits that come with having a permanent employee, such as medical or health benefits, paid leave, or retirement benefits.

With an in-house team, you may need to pay for special training or subscribe to software licenses. But this is not the case with freelancers!

You can get trained experts with the required skills, and most of them work with their own tools, which are already subscribed to. While pricing models vary, you can find experts with project-based or hourly rates that are affordable.

4. Adjust quickly to market changes

In business, market trends can be volatile. Sometimes, your customers may ditch purchases while patronizing less-expensive alternatives. Other times, you may witness rising sales as more customers purchase your products.

For these activities, you need strategic solutions, which are possible through expert market analysis. So, hiring a freelance consultant who can analyze economic indicators and navigate market shifts is necessary.

Often, there are specialists who can analyze special data, new regulations, and emerging technologies, pinpointing unexpected opportunities for your business to thrive.

Also, these freelancers can implement effective risk management strategies to protect your firm from external threats.

Compared to in-house teams, you can find specialists from the talent pool who have practical advice from years of experience working across different business climates.

Previous roles as cash flow optimization experts or investment advisors with other organizations will definitely enhance their knowledge, so they can help you better.

5. Develop customized solutions

Each business faces its unique challenges, hence there’s a need for personalized recommendations that solve your firm’s financial challenges. Notably, freelance consultants work closely with clients to develop strategies that align with their overall business goals.

While big consulting firms operate with standardized frameworks, these freelance experts are willing to adapt based on the current situation of your business.

You can easily have them build solutions that fit your business’s size and budget.

Also, these freelancers often have more experience than in-house employees, having worked with various businesses in the past. With key skills and appropriate experiences, they can provide insights and develop strategies that boost your company’s finances.

6. Efficient tax planning compliance

A successful business must excel at tax planning and compliance.

However, the intricacies of tax codes and the emerging regulation shifts, complicate the entire process. Hence, the need to partner with a financial planner or consultant, as they are essential in creating a smooth growth path for your company.

Many freelance consultants are specialists in this area, providing on-demand services in line with local and international tax codes.

In a bid to ensure your business avoids costly mistakes, these financial consultants keep a watchful eye on tax laws and ensure compliance with any recent changes.

And if your firm is struggling with high tax burdens, they can confidently develop tax strategies that align with your business goals and growth plans. Yes, a good freelance financial consultant can tell you what your business needs to minimize tax liabilities.

These may sometimes include restructuring an organization’s hierarchy and leveraging tax benefits. They can also try tax-efficient investment strategies, such as Enterprise Investment Schemes and Venture Capital Trusts, that offer attractive tax benefits.

So, investing in a freelance consultant can help you save money in the long term, which you can later reinvest in the business and build financial stability.

7. Accurate and timely financial reporting

Most startups make the mistake of thinking that finance management and reporting are easy. Well, it is not, and over time, it could become overwhelming and time-consuming.

The resulting frustration could lead to procrastination, stress, and oversights. You can easily solve this problem by investing in a freelance consultant. The same thing applies to existing business owners.

Accurate, timely financial reporting is key to making well-informed business decisions. Such reports relay key performance indicators (KPIs) and current market trends.

Finance consultants who work as freelancers hold the core responsibilities of delivering accurate and up-to-date financial reports. These experts often do these without the bureaucracy or excessive administrative procedures that delay full-time employees.

There are no unnecessary meetings or coordination challenges. Such specialists often use licensed tools that help them spot errors with ease and turn in accurate reports.

8. Support international expansion

It can be quite exhausting for firms expanding offshore, as the intricacies of the foreign markets can take a toll on their performance. Also, international tax regulations and financial systems may require advanced financial analysis.

Hence, hiring a freelance consultant with a deep understanding of complex tax laws and compliance requirements, the new market, and even currency fluctuations, is necessary.

Instead of going through the rigorous process of hiring new full-time employees or moving the old ones to the new location, you settle for a freelancer within that vicinity.

This freelance specialist can help with market entry and investment strategies, identify local competitors, and help you understand clients’ preferences in the new location.

They will also come in handy in the management of cash flows across borders and minimizing risk exposures.

9. Secures your business financial future

Financial consultants play a significant role in planning businesses’ financial futures.

These plans often vary from firm to firm, depending on the business’s current stage. For startups, the focus is mostly on improving cash flow, and over time, this plan expands to other critical areas.

If you want a simplified explanation of your business’s current and future standing, a freelance consultant will be helpful.

These experts can design roadmaps that align with your business needs. They can develop revenue projections, cost-saving tips, and other sustainable plans.

10. Get access to professional networks

Many freelance financial consultants have extensive networks, built through their work with multiple clients. These include large corporations across accounting, banking, and law.

Thus, they can leverage these connections to provide support and resources that can benefit your business.

If you are wondering how these networks will be valuable to your business, then picture a complex scenario that requires you to scout for multiple experts.

Instead of going around searching for experts who can each handle tax issues, regulatory updates, risk management, audits, or cash flow restructuring, the freelance consultant you hire can help bring in the right hands.

Thus, your business can enjoy greater flexibility, speed, and cost-effectiveness.

What freelance financial consultants are available?

There are different kinds of freelance consultants, but sometimes the specialist you hire may have overlapping skills. Nevertheless, it is important to understand the different roles and how they can influence your business outcomes.

First, the type of consultant you need depends on the challenges your business is facing. At different business cycles, you may need specialists for specific roles.

Also, you can decide to sign short or long-term contracts with these freelancers. With that in mind, here are some common financial consultants you’ll find in the freelance space:

a. Chief Financial Officer (CFO)

A freelance CFO offers strategic financial guidance to firms and helps develop strategic exits for evading financial challenges. These experts can conduct due diligence, provide financial forecasts, and create pathways to achieve your business goals.

b. Financial Controller

A controller can help manage your organization’s accounting department, developing procedures and guidelines for various financial activities. If you are unsure where to begin with regulatory compliance, these specialists are your go-to.

They can also help provide data and reports needed for forecasting, budgeting, and risk management.

c. Certified Public Accountant (CPA)

The CPAs are in high demand! These experts are responsible for preparing and filing tax returns. They also help identify potential tax deductions, provide audit support, verify, analyze, and adjust data entries, and can design a general tax strategy.

d. Bookkeeper

Freelance bookkeepers play a crucial role in businesses by recording financial transactions, balancing books, and assisting with bank statement reconciliation.

These specialists can also help prepare your firm’s monthly financial reports and handle accounts payable/receivable.

Some business owners even hire them to handle payroll functions.

e. Financial Analyst

Financial analysts are valuable assets to businesses, and hiring such freelance consultants can help grow your firm. These consultants help study market trends and examine financial statements.

From creating board reports to data analysis, these experts help businesses forecast and manage risks.

Choosing the right freelance financial consultant

The hiring process for a financial consultant can be quite challenging, but this has been made easier with certain online platforms. Nevertheless, you can’t just hire anyone during a job search; you need experts with a track record and experience.

So, the criteria for choosing a good freelance financial consultant include:

a. Credentials

It is important to seek certified consultants.

You can find many freelancers with a Bachelor’s degree, and others with relevant qualifications such as CFA, CPA, or advanced degrees.

b. Responsibilities

You need experts whose core responsibilities align with your business and financial goals. These consultants should be able to grow your firm while providing financial clarity and reducing excessive operating costs.

c. Communication

These are key skills for financial experts. You need them to communicate complex concepts clearly, operating independently to boost your business.

d. Fees

Finally, the fees are another important consideration in hiring a freelance finance consultant. Be sure to understand the fee model. Is the expert charging for the entire project or charging an hourly rate?

Also, the fees are fixed; these days, many freelancers allow some negotiation.

Conclusion

A financial consultant is beneficial for businesses, but hiring a freelance consultant offers greater flexibility and reduces operational costs. Notably, these freelancers are specialists, and you can hire them for specific projects without needing to commit long-term.

You get the chance to handpick talent from the global freelance pool who can develop strategies and move your business forward.

Unlike big consulting firms, they don’t work with standardized frameworks and can easily conform to your current business needs.