What’s the Value of Advice?

Brisbane Business Accountant - people seeking financial advice

Paying hard-earned dollars for a TV makes sense. Paying a surgeon to have your appendix removed makes sense. Paying to have your car serviced makes sense. But why would you pay for professional advice? Surely you can make your own decisions without expert help. Surely you know what’s best for you, your family, your money, and your business. Right? Actually, life, money and business aren’t quite that simple.

Professional advice is like any other outlay. You are buying something with your money, and that could be piece of mind, of it could be cold hard return on investment. Often it’s both.

Does the Australian cricket team have a coach to keep them on track? Actually they have a team of coaches to do just that. Why do they need coaching, when they’re already so good?

Does Sir Richard Branson use professional advisers to help steer the Virgin Group in the right direction? You bet he does. But why should he bother? He’s already successful, isn’t he?

What about Australian icon Dick Smith? In a 2011 interview with Alex Pirouz he said “Surround yourself with quality people, people who know more than you. My success is a direct reflection of the people I have mixed with over time as well as my modelling others who are successful, keeping focused and asking lots of great questions.”

Do you see a pattern?

Successful people are willing to receive and follow good advice. Despite being rugged individualists, they are prepared to put aside ego, and learn from anyone who has something to offer.

If your financial adviser comes up with a plan which ensures you and your family will not be financially ruined in the event of prolonged illness, what could that be worth to you?

If your accountant provides business structuring and operational recommendations which improves your bottom line by $50,000 over the next 5 years, is that worth the cost of a few hours of professional advice?

Our clients tell us that our financial advice gives them peace of mind knowing that professionals are looking after them, and that they are financially well prepared for the future. In addition, they say the benefits of our advice far out-weigh its cost.

A 2008 study by Rice Warner Actuaries showed that the value of professional financial advice – as measured by average expected return to the client – can often run into tens of thousands, or even hundreds of thousands of dollars. By comparison the cost of such advice is negligible.

If you would like to know more about how your accountant or financial adviser can add value to your business, your life, and your finances, or if you would like some more information about the quantifiable value of financial advice, call us now on 07 3822 7201.