What Is the Difference Between Advisory and Consultancy?

It is very common to confuse the work of an advisory and those of a consultancy. Many entrepreneurs who start their business for the first time have the question of who to entrust this important service to so that the company goes well and the results are as expected.



But it's really not just a matter of beginners. Many times even the owners themselves do not know how to say for sure what the difference between a business advisory firm and consulting is.

This is so because in the first instance it seems that there is no reason to differentiate between one and the other. In the end, they aim to achieve an optimal result for the business.

In this post, JSP Associates experts will solve this doubt by breaking down both services, so that when you are asked about the difference you know how to delimit it instantly.

What is an advisor?

The person who has administrative, legal, tax, and accounting knowledge. It could be said that the consultancy has greater proximity to the company or the self-employed.

This professional has as his main task to accompany objectively and permanently all types of businesses, companies, or freelancers to analyze their accounts and evaluate performance.

He is in charge of presenting the tax and accounting documents of the business to the Administration. In addition, a business advisory consultant analyses the accounts and makes forecasts to ensure the growth of the company or the self-employed.

What is a consultant?

The consulting service is more punctual. It is requested when a problem arises in the company that requires a thorough analysis. Then he goes to the business and makes a detailed review to give the solution guidelines.

Business consulting firms in Mumbai are contracted mainly to escalate a specific obstacle in a department or throughout the company. It does not need a certain history of the company, since it does not do continuous work.

Main Difference between Advisory and Consulting Service:

• The consulting work is a punctual and specific work, the consultant usually develops an activity during a period of time in the organization and once finished does not usually continue linked to the company and that of the advisor is a more long-term work linked to the day to day management of the company.
• Business consultants in Mumbai analyze the root of the problems, giving solutions to them. While the advisor is a professional who works to help the company or the person in its management, in the development and execution of a whole series of disciplines (labor, tax, accounting, ...) that are necessary and usually mandatory for the general operation of the company or an individual, for example, to "make the income".

You have already seen that one of the main differences is that consulting is a service that is contracted sporadically, while consultancies are usually hired permanently. But there are other aspects to take into account so as not to be confused:

• Problems. Consultants detect and solve problems. While the advisors try not to have those problems. They are up to date with the business situation to foresee certain decisions that put the company or the self-employed at risk.
• Technology. Advisors guide you when it comes to using technology to develop different strategies for your business. Consultants install technological solutions for your company to manage the firm's information in a better way. 
• Independence. We could say that an advisory works directly for you and helps you manage the company in the best possible way. However, consultancies provide their services more autonomously. They are independent, the relationship they establish is punctual and they analyze the business from the outside.