Financial advisers for small businesses – handy guide

Keeping on top of business finances isn’t always straightforward. Especially in 2025, SMEs have to contend with rising business rates, higher minimum wage, and an unrelenting cost-of-living crisis.

That said, there is a range of new government initiatives to help businesses navigate the tough economic climate, as part of plans to kickstart economic growth in the UK.

But with so much going on, it’s easy to lose sight of the support available. The daily demands of running a business are often all-consuming, and you could be unintentionally missing out on valuable savings, tax allowances, and opportunities to safeguard your business’s financial health.

Enter a financial adviser, who can help you stay up to date on financial allowances and can help you create a plan that supports both the health of your business and your peace of mind.

In this article, we’ll explain what exactly financial advisers do, how much they cost, and how you can find the right one for your business.

What is a financial advisor?

Financial advisors are professionals who help individuals and businesses make smarter money decisions. They offer support with everything from managing cash flow and planning for tax to setting up insurance, pensions, or even business mortgages.

One key point to note: not all advisors are the same. Some are independent, which means they can offer impartial advice across the whole market, while restricted advisors are tied to specific products or providers.

What services can you get?

Here are the types of tasks a financial advisor can help you with:

• Financial planning: setting clear goals for your business and building a clear path to achieving them.
• Cash flow management: helping you balance income and expenses to keep your business running smoothly.
• Tax allowances: advising on how to make the most of the allowances out there to reduce unnecessary liabilities.
• Pension planning: setting up and managing pensions for you and your employees.
• Investment advice: guiding you on how to grow surplus funds through low- or high-risk investments.
• Insurance cover: recommending the right protection, from public liability to key person insurance.
• Debt management: helping you manage loans, credit, and repayment strategies.
• Business exit planning: preparing for selling, retiring, or passing your business on with minimal disruption.

Different types of financial advisers

There’s no universally suitable financial adviser. And depending on your needs, one type might suit you better than another. 

Here’s a breakdown of the main types of advisers you might come across, and what each one has to offer:

Independent Financial Adviser (IFA)

IFAs aren’t tied to any single provider, so they can recommend financial products across the entire market. They’re regulated by the Financial Conduct Authority (FCA) and must hold specific qualifications.

Restricted Adviser

These advisers are limited in what they can offer, either because they specialise in one type of product (like pensions or mortgages) or because they only work with a small pool of providers. They’re also regulated by the FCA and must have relevant qualifications for the specific area they work in.

Certified Financial Planner

Rather than jumping straight into product recommendations and action items, certified financial planners take a holistic look at your finances. They’ll help set long-term strategies aligned with your goals, whether that’s business growth, retirement, or succession planning. Look for the CISI-certified financial planner accreditation for extra reassurance.

Accountant

Accountants are your go-to people for the day-to-day financial running of your business. They can handle everything from tax returns and financial reporting to payroll and compliance, making sure your business stays legally compliant and tax-efficient. 

When do you need a financial adviser?

Financial advisers can play a valuable role at every stage, from starting your business to planning your exit. 

Here are some of the key moments when a financial adviser can add real value:

• Start-up phase: when developing a financial plan, business structure, and funding approach, like angel investors or venture capital.
• Navigating growth: to help manage cash flow, reinvest profits, and make smart scaling decisions.
• Mergers or acquisitions: for due diligence, valuation, and integration support.
• Tax planning: to optimise your business structure and take advantage of allowances and reliefs.
• Succession or exit planning: to prepare for sale, transfer, or retirement.
• Major financial decisions: such as buying property, changing shareholder agreements, or investing surplus funds.
• Lack of in-house knowledge: particularly for sole traders or smaller businesses without a dedicated finance department.
• Facing financial difficulty: to manage debt or navigate insolvency concerns.

Questions to ask

Before shopping around for a financial adviser, businesses should clarify what they specifically need help with. Otherwise, you’ll spend hours trawling through potential advisers. 

Here are a few key questions to ask yourself, or your business partner, to help narrow your search:

• What are our current financial goals and challenges?
• Do we need ongoing advice or support for a one-off decision?
• What do we need advice on, tax, investment, business planning, etc.?
• Do we want someone to guide strategy, compliance, or both?
• What’s our budget for financial services?
• Do we have internal capabilities, or will we rely completely on external advice?
• Are we comfortable sharing sensitive financial information with an external adviser?

How much does a financial adviser cost?

How much a financial adviser costs will vary depending on the complexity of the advice and the adviser’s experience and individual rates. 

Here’s a general ballpark:

• Hourly rate: £150–£400 per hour
• Fixed fees: £500–£5,000+ for specific services like business valuations or tax planning
• Retainer model: £2,000–£10,000+ per year for ongoing support
• Percentage-based fees: 0.5%–1% of assets under management (less common in business advising, more typical for investment services)

Ultimately, the decision to engage a financial advisor is an investment in the future of the business, fostering stability, growth, and prosperity.

What affects cost?

One major factor that affects the cost of hiring a financial adviser is the size and complexity of the business seeking advice. Larger or more complex financial situations naturally require more time and expertise, which is reflected in higher fees.

The type of advice also plays a role in cost. For example, basic accountancy like filing tax returns may cost less than developing a comprehensive investment strategy or long-term financial planning. 

Your adviser’s level of experience and qualifications will also have an impact on their rates. As with any profession, more experienced professionals typically charge higher rates than those just starting out. 

Additionally, the degree of contact you prefer to have with your adviser will also determine the fee, whether it’s a one-off consultation or ongoing support. 

Finally, location matters too. Advisers working in major cities or financial hubs may charge more, and fees can also fluctuate depending on whether the adviser works independently or as part of a larger financial firm.

How to find a financial adviser

If you’d like to explore working with a financial adviser, you can now begin your search. There are a few key steps to finding the right financial advisor for your business. 

Consult your network

A great place to start is by seeking out recommendations from trusted professionals in your own network, such as your accountant, solicitor, or friends who might also run businesses.

You can also explore professional directories like the Chartered Institute for Securities & Investment (CISI), the Chartered Financial Planner register, or use websites like Unbiased.co.uk to find qualified advisers.

Do your research

Once you have a shortlist, take time to carefully check each adviser’s credentials. Crucially, they need to be authorised by the Financial Conduct Authority (FCA) and hold the relevant professional qualifications. 

It’s also wise to speak with several advisers before making a decision. This gives you the chance to find someone who understands your business needs, shares your company values, and, as a bonus, you click with.

Check references

Finally, ask for references from their other clients, ideally from similar-sized businesses within your industry, so that you can get a better sense of their experience and approach.

Summary: is a financial adviser worth it?

Many small business owners and sole traders manage their own finances successfully, particularly when professional fees seem hard to justify during the cost-of-living crisis. Only around a quarter (26%) of UK SMEs seek external advice, according to a 2024 government report. But the FCA expects the sector to evolve in the coming years. 

However, going it alone can be risky. It’s common to fall into making emotionally driven decisions or overlook important aspects of your business finances simply because you’re too close to them. 

There’s also the growing danger of relying on unregulated advice from social media sources, such as TikTok’s so-called ‘finfluencers’, which can do more harm than good.

Alternatively, a qualified financial adviser can help your business make informed financial decisions, while easing the pressure of being single-handedly responsible for your company’s financial well-being. 

They also offer:

• Valuable expertise you may not have in-house
• Clarity and confidence in complex financial matters
• Strategic insight for long-term planning
• Potential savings through tax planning or improved efficiency

However, the question of whether it’s worth it completely depends on your business needs, stage, and budget. Ask the right questions, thoroughly compare advisers, and be clear on what you want from the partnership, and a financial adviser could become one of your most fruitful investments yet.