Financial advisers for small businesses: our handy guide

Financial advisers play an important role in your business finances, providing you with strategic planning that can help you grow effectively. We’ll break down what exactly financial advisers do, how much they cost, and how you can find the right one for your business.

As we head into 2026, SMEs are set to contend with rising business rates and the approaching increase in the minimum wage, with little relief provided from the 2025 Autumn Budget. 

While there are government initiatives available to help businesses, they can be easy to overlook. You could be missing out on 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 assist you in creating an effective plan. 

What can a financial adviser do for my business?

Financial advisers 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 advisers are the same. Some are independent, which means they can offer impartial advice across the whole market, while restricted advisers are tied to specific products or providers.

What services can you get from a financial adviser?

Here are the types of tasks a financial adviser 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.

Financial adviser vs. accountant: what’s the difference?

Accountants are not permitted to give “regulated” financial advice. Essentially, they can’t provide advice on to how to invest your money.

In a financial context, “advice” is regulated, and firms must be regulated by the Financial Conduct Authority (FCA) to provide it. You should always check the firm or individual you are dealing with is listed on the Financial Services Register.

For example, accountants will talk freely about areas like cash flows and profitability, but couldn’t advise you to pick a specific pension. At this point, a financial adviser would enter the equation, assisting with long-term financial strategy.

This is why an accountant and financial adviser together make a great team for your business.

The 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:

What is an 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.

What is a 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.

What is a 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.

What is an 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. 

The trick is to choose the right accountant. Accountants are comparable to doctors, with a range of individual specialisms. For example, while many accountants will deal with tax generally, within tax there will be deeper specialisms.

2026 is set to see a continuing rise in accounting firms offering Virtual Finance Director (VFD) services. This refers to specialists who provide financial advice and guidance remotely. VFD services provide flexibility, allowing you to access specialist advice without having to engage a full time member of staff.

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.

How do you know who is right for you?

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?

While this depends on the complexity of the advice and the adviser’s experience, fees typically range from £150 to £400 per hour, or £500 to £5000+ for specific services.

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)

What factors affect the cost of a financial adviser?

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, but only if they are providing regulated financial advice (such as investment advice).

Most accountants or consultants for example won’t be registered with the FCA. Though you should also check that your chosen professional is a member of a professional accounting body, such as:

• ACCA: the Association of Chartered Certified Accountants
• ICAEW: the Institute of Chartered Accountants in England and Wales
• AAT: the Association of Accounting Technicians
• ATT: the Association of Taxation Technicians

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 testimonials

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.

Expert opinion: Dan Heelan on getting the best help for your business

When it comes to getting help with your finances in your small business, often a combination of advisors can be the ultimate power team. However, with their costs factored in, it’s often a good strategy in the early stages to look at whether you can find an all-rounder for your immediate challenges. For example, many modern accountants will look at business finances and tax as well as file your accounts. You’ll only need to bring in financial advisors when there is a question on investment advice, such as what pension to pay into. Or you might find that if it’s purely investment advice you need, such as what to invest your personal funds in, a regulated financial advisor will be your immediate go-to. As you grow and your needs change, having multiple specialist advisors can be the best option. Professional advice is often one of the larger investments you will make each year, especially for service-based businesses, so be sure to factor a budget in for this when thinking about business numbers.

Dan Heelan Accountant and Business Services Director at Heelan Associates Ltd

How to work effectively with your financial adviser

You should treat your relationship with your financial adviser as a strategic partnership. You’ll need to ensure your adviser has all the most relevant and helpful data you can provide so they can operate effectively and offer useful and accurate insights and guidance.

In order to work efficiently, and avoid unnecessary hourly charges, you should attempt to have your key financial documents ready and prepared in advance of the first meeting. You should have well organised documents such as:

• Profit and loss statements
• Balance sheets
• Your tax returns
• Any current pension/insurance policy documents

It will also help if you are clear about the goals you are looking to achieve. In order to get the most effective support, your adviser will need to understand whether you’re aiming for fast-growth, or seeking a business exit in the near future.

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

Ultimately, 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.