Cutting Through the BS: How to Spot Bad Financial Advice Online as a Small Business Owner
Cutting Through the BS: How to Spot Bad Financial Advice Online as a Small Business Owner
Does this sound familiar?
-> You are constantly looking for ways to improve your bottom line and grow your company.
-> You may turn to the internet for advice on managing your finances, but not all advice is created equal…in fact, there is a lot of bad financial advice online that can do more harm than good.
So where does that leave you?
It leaves you wondering how to spot bad financial advice online as a small business owner. You may not be a financial guru
Let’s discuss cutting through the BS and give you some tips for spotting bad financial advice on social media to help you find a GREAT bookkeeper.
1. Look for Credentials and Expertise
One of the easiest ways to spot bad financial advice online is to check the credentials of the person giving the advice. Do they have any relevant qualifications or certifications? Have they worked in the finance industry for a long time? Do they have a good track record of helping small businesses like yours?
If the person giving the advice does not have any qualifications or relevant experience, it is probably best to look elsewhere for advice.
*A bunch of followers online does not count as credentials or expertise!
2. Check for Bias
Another way to spot bad financial advice online is to check for bias. Is the person giving the advice trying to sell you a product or service? Are they affiliated with a particular financial institution?
If so, they may have a vested interest in promoting certain financial products or services, even if they are not the best fit for your business. Be wary of advice that seems too good to be true or that comes with a sales pitch.
This can be difficult when trying to also look for a bookkeeper - since they are likely also promoting their business! Be wary of promises or advice that seem too good to be true. All these points should be taken into consideration - OK?
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3. Look for Specifics
Good financial advice is specific and tailored to your business's unique needs. If the advice you find online is vague or generic, it may not be very helpful.
Look for advice that includes specific details and actionable steps that you can take to improve your finances.
For example, instead of generic advice like "cut your expenses," look for specific tips like "renegotiate your lease" or "switch to a lower-cost vendor."
This shows they have experience handling your challenges and not just referencing vague tips.
4. Check for Consistency
Good financial advice is consistent and based on sound financial principles. If the advice you find online seems to contradict other advice you have received or goes against common sense, it may not be reliable.
For example, if one source tells you to invest heavily in stocks while another tells you to avoid the stock market altogether, it can be difficult to know which advice to follow. Look for advice that is consistent with your own experience and with other reliable sources of financial information.
5. Be Wary of Get-Rich-Quick Schemes
Unfortunately, there are many online scams that promise quick and easy ways to make money. These schemes often involve risky investments or outright fraud. Be wary of any financial advice that promises you can get rich quickly or with minimal effort.
Remember, there is no substitute for hard work, sound financial planning, and prudent investment.
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6. Seek Out Multiple Sources
Finally, the best way to spot bad financial advice online is to seek out multiple sources. Don't rely on just one website or one person's opinion. Instead, gather information from a variety of sources and compare and contrast the advice you receive.
This can help you identify any biases or inconsistencies in the advice you are given and help you make better decisions for your business.
Finding good financial advice online can be a challenge, but it is not impossible. By checking for credentials, avoiding bias, looking for specifics, checking for consistency, avoiding get-rich-quick schemes, and seeking out multiple sources, you can protect your business from bad financial advice and make informed decisions about your finances.
Remember, your business's financial health is too important to leave to chance. Take the time to do your research and make informed decisions based on reliable information.
If you are ready to begin working with a bookkeeper you can trust, schedule a call by clicking here.
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