Accountants play a vital part in the success or failure of a business. Business owners are good at what they do making and perhaps selling their product. Financial strategies are left to the advisors in the business owners’ life.
To add value to the relationship accountants should acquaint themselves with all forms and aspects of financial products. Learning about going public, issuing debt or factoring are valuable endeavors and ultimately makes the knowledgeable accountant a more valuable asset to his/her clients and keeps that individual one step ahead of the competition.
Most CPE courses unfortunately miss the main concept of the factoring process which is the fact that interest is not charged, the business is selling an asset at a discount. This and many other aspects of factoring are widely misunderstood by the general marketplace. That not withstanding it certainly is not the least expensive form of finance but ranks high in flexibility and ability to stimulate and support business growth.
Accountants should develop relationships with finance providers such as asset based lenders, bankers, investment bankers, factors and venture capital sources. With a referral base such as these an accountant becomes an important component in planning the future of his/her client. Picking the correct solution for your client becomes easier when the options are this diverse. An additional benefit for an accountant is that a referral fee paid by the financial institution can add to your sources of income. Most such fees are not structured as an additional expense to the client, but as a revenue share from the finance company.
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