Only one in three Australian businesses utilises the services of a financial adviser, a new survey has found.
Conducted by Bibby Financial Services, the survey of 620 business owners gauged Australian business sentiment on cash flow, financing and key business challenges. It found that while just one third of businesses had engaged a financial adviser, three in ten business owners said they intended to seek advice in the next year.
When businesses did seek advice, the survey revealed that the most common areas of support were:
- Business advice (59%)
- Tax (57%)
- Superannuation (57%)
- Investing (29%)
Just 20% of businesses sought advice on managing risk.
“Family-owned businesses are more likely to use a financial adviser (36% versus 27%), possibly reflecting the fact that the families have more of their financial future tied up in their businesses and are therefore more ready to seek advice,” Mark Cleaver, Managing Director of Bibby Financial Services Australia and New Zealand, said.
Press coverage of banks giving poor financial advice could well have deterred many businesses from seeking financial advice
“The financial advice industry has gone through a huge shake-up in recent times. Press coverage of banks giving poor financial advice could well have deterred many businesses from seeking financial advice. At Bibby, we encourage businesses to take independent advice from qualified and well-respected financial advisers. In our experience, businesses that seek financial advice make better decisions and are better placed to manage their cash flow,” he added.
The survey revealed that Western Australian businesses were the most likely to use a financial adviser, while those in New South Wales have the greatest intention to use one in the future. Queenslanders are the least likely to use an adviser in the future, which Bibby attributed to the fact that they are more optimistic than other states about their future prospects, and perhaps perceive they do not need any help.
“The general reluctance to seek financial advice could also be due to the fact that one in five businesses holds its assets in cash rather than in riskier assets. Compared to July 2014, the proportion of businesses holding more than half of their assets in cash and cash equivalents has fallen slightly (20% versus 22%), possibly reflecting persistently low interest rates,” Mr Cleaver said.
