The importance of advisors working together

March 10, 2023

Today we often see clients with multiple business advisors, from lawyers, accountants and financial planners to business coaches and succession facilitators. Each of these professionals should be working together to further your business. They each have a common goal – your success.

Each of your advisors play a different role. Your advisors should know each other and be able to communicate and work together effectively to achieve your desired outcomes. When your advisors are working together and sharing information, they can offer potential solutions or opportunities that an individual advisor may not have been able to see alone.

Picture this: You engage a lawyer to prepare your Will and enduring power of attorney (estate planning documents). Your lawyer asks you about any other advisors you have and if they can contact them. But why?

• Your accountant will likely have a deep understanding of any companies, trusts or partnerships you are involved in and what each of them own and do. It is important for your lawyer to know about your entities so they can prepare your estate planning documents to take them into account.
• Your financial planner may manage your superannuation and life insurance, if so, they will know about any beneficiary nominations you have made and the insurance policies you have. It is critical for your lawyer to know these details to understand how your assets will be distributed between your nominated beneficiaries following your death.
• Your succession facilitator may have a greater understanding of each of your family member’s goals and expectations. This will assist your lawyer to make sure your estate planning documents are consistent with your plan.

Communicating with your advisors about the above matters is critical to the preparation of your estate planning documents. Preparation of your estate planning documents is just one example of why your advisors should work together. The more complex your affairs are, the more important it is for your advisors to communicate.

No one individual advisor can have all the answers. This is why your lawyer may refer a tax question to your accountant; or your financial planner may refer the preparation of your superannuation death benefit nomination to your lawyer. Each of your advisors have different expertise, and you should use this to your benefit. A lack of communication between your advisors could lead to a missed opportunity for you and your business.

Having a team of advisors who work together harmoniously and openly share information will likely result in more efficiencies and opportunities for you and your business. Your advisors should know your business, which will allow them to work together to provide advice and solutions that only comes with a deep understanding of your business.

Document sharing, video conferencing and other developing technologies make it easier for your advisors to work together. Next time you meet with an advisor, let them know about your other advisors and that you consent for your information to be shared between them.

If you need to discuss any of your business needs, please contact a member of our Business Services team.