What’s the Difference Between a Consultant and an Advisor?
Companies bring in outside experts all the time, but not all experts play the same role. Some step in to solve a specific problem. Others stick around to guide long-term decision-making.
That’s the key difference between an advisor vs. a consultant. A consultant is like a specialist—hired to fix an issue, set up a system, or improve efficiency. An advisor builds an ongoing relationship and helps businesses plan for the road ahead.
For financial professionals, this distinction matters. It can shape your accounting career path, client relationships, and firm growth. Let’s break down key differences, when businesses need them, and how accounting firms use both to stay ahead.
Advisor vs. consultant: A high-level comparison
Big picture, consultants solve problems, while advisors provide ongoing guidance. But it goes deeper than that. Their roles, responsibilities, and industries they serve also look a little different.
The table below lays it out:
Key differences between advisors and consultants
| Factor | Consultant | Advisor |
| Scope of work | Project-based, solves specific problems | Ongoing guidance, long-term strategy |
| Engagement length | Short term, focused on immediate needs | Long term, builds sustained success |
| Decision-making | Recommends solutions; client decides | Guides decisions as a strategic partner |
| Industries typically served | IT, management, tax, operations | Finance, wealth management, business strategy |
| Education/certifications | Often specialized (certified public accountant (CPA), Master of Business Administration (MBA), etc.) | Experience-driven; may include certified financial planner (CFP) or strategic expertise |
| Example use case | Implementing accounting software | Advising on business growth and risk management |
Breaking it down further
Once a consultant’s project is complete, so is the engagement. An advisor is different. They don’t just give advice and walk away—they become part of the team.
A firm might work with an advisor for financial planning, risk management, or business growth strategies. For accountants, choosing an advisory vs. consulting path isn’t just about titles. It’s all about how they want to shape their work and relationships with clients.
What does a consultant do?
A consultant is a specialist businesses bring in when they need expert guidance on a specific challenge. They solve problems, improve processes, or develop new strategies—then step away when the work is done.
In accounting, consulting takes many forms. Firms may hire consultants to restructure tax strategies, helping clients stay compliant while reducing liabilities. Others bring in specialists to automate financial workflows or conduct forensic audits to investigate potential fraud. If a company is expanding internationally, a consultant might step in to assess cross-border tax implications and protect the bottom line.
Beyond short-term fixes, consultants can support high-level financial forecasting. A business preparing for rapid growth or acquisitions may hire a consultant to analyze trends, identify risks, and map out financial projections. While they don’t stay on board indefinitely, a consultant’s insights help shape long-term success.
Once a project wraps up, consultants document their findings, train internal teams, and move on. Their job is effectively to provide a roadmap and hand over the wheel.
What does an advisor do?
A consultant steps in to tackle a project. An advisor sticks around to guide a business through its biggest decisions.
An advisor’s role is about seeing the bigger picture. A company may work with an advisor to develop a financial strategy for every growth stage. Some businesses even turn to chief financial officer (CFO)-level advisors for high-level insights on forecasting, cash flow management, and investment strategies—without the cost of a full-time executive.
Advisors do more than analyze data. They help businesses connect the dots. Should a company reinvest profits or expand operations? How will a shift in tax policy impact long-term goals? Advisors bring unbiased insight to these kinds of decisions.
Over time, an advisor becomes more than a service provider. They become a trusted voice in a business’s biggest moments.
How consulting and advising relate to accounting firms
Many accounting firms now offer both consulting and advisory services, helping businesses with everything from software implementation to long-term financial strategy.
Short-term engagements with a clear objective call for consultancy. A consultant steps in, solves a problem, and steps out. For example, a company might hire an accountant to optimize tax planning, conduct a compliance audit, or integrate a new accounting system.
Advisory services, however, are about the long game. Instead of addressing one issue at a time, advisors help businesses develop financial strategies for sustainable growth. More than 4 in 5 firms (83%) already offer advisory services, with 20% more planning to expand these services.
Firms that provide consulting and advisory services position themselves as strategic partners, not just service providers. Consulting solves immediate challenges. Advisory provides direction for the future. Together, they can build stronger client relationships and open new revenue opportunities.
What types of businesses engage advisors vs. consultants?
Each business is different when choosing consulting or advisory services. Some teams may hire both, while others need neither. The decision depends on whether a company needs short-term expertise or long-term financial guidance.
What types of businesses hire consultants?
Corporations that need specialized expertise for a specific challenge tend to favor consultants. It’s particularly popular in the financial services sector, which accounts for roughly 25% of global consulting revenues.
Businesses typically hire consultants to tackle tasks such as:
- Setting up or optimizing accounting software like QuickBooks Online
- Restructuring tax strategies to lower liabilities
- Navigating compliance audits and regulatory reviews
- Expanding into new markets and adapting financial reporting
What types of businesses hire advisors?
Advisors work best for companies that need ongoing financial strategy and risk management. These include:
- Small-to-mid sized businesses (SMBs) that want long-term financial forecasting
- Family-owned companies preparing for succession planning
- Corporations managing mergers and acquisitions
- Fast-growing startups that need CFO-level financial insights
Many companies use both advisors and consultants. For example, a business might hire a consultant to set up an accounting system and later retain an advisor for long-term financial planning.
What types of businesses engage advisors vs. consultants?
Businesses today need problem solvers, strategic thinkers, and financial guides. That’s why understanding the scenarios and expertise that require advisors vs. consultants makes all the difference.
Consultants step in to tackle immediate challenges, while advisors build long-term relationships, helping businesses navigate strategy, risk, and growth over time. For accounting professionals, mastering both roles is an advantage—an opportunity to open new doors.
Looking to grow in these areas? Intuit Connect is the premier event for accounting professionals to exchange ideas, gain expert insights, and stay on top of industry trends. It’s your chance to uplevel the services you offer clients.