Many self-employed businessmen believe they do not earn enough money to need financial advice, but anybody with an after-taxes income of more than $20,000 can use financial advice. This goes double for someone in business for himself. Many kinds of advisors are available, such as stockbrokers, lawyers, accountants, credit counselors, bankers, and insurance agents. One of the newer services is that provided by a financial planning consultant, a generalist who can help you with overall financial planning.
Before hiring the services of anyone of these people, though, think about who has the expert’s loyalty. Many insurance agents, for example, earn commissions from insurance companies and as a result charge you nothing. This does,’t mean you don’t get good—free-financial advice, it just means the agent will be trying to sell you insurance along with the advice. His loyalty goes to his employer. On the otherhand, you pay a financial planning adviser or an accountant, and his loyalty is strictly to you. Both kinds of advisers can be very helpful, provided you understand the situation.
Before getting involved with any financial expert, check his references. The best reference, of course, comes from a satisfied friend. You can also casually ask the person the first time you meet him about his background and training. Ultimately, though, before you trust anyone with your money, you should like him. Personal chemistry accounts for a lot in choosing anyone with whom you will have financial dealings.
The one adviser a self-employed businessman is most likely to have is an accountant or an accountiong service. It is strongly suggested that you have an accountant do your taxes. In fact, if you feel you cannot handle the records systems, you can hire an accounting service to set up a record system for you, but it is expensive. A one-time setup will cost something between $200 to $500. Alternately, the accountant who handles your taxes may be willing to help you set up a records system for a small free. When you are negotiating with him, remind him that any system you work out is only to his benefit since he goes over the records at the end of the year, anyway.
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