To become a financial planner, you first must know what their job profile is. Financial planners help in determining the financial resources necessary to meet the company’s operating program. They also help in forecasting the extent to which these requirements will be met by the internal generation of funds, & the extent to which they are going to be met from outside sources.
It’s the job of financial planners to create the best designs to receive the necessary outside funds. They also help in establishing & maintaining a process of financial control governing the allocation & use of funds. Financial planners formulate programs to provide the most effective cost-volume-profit relationship. It’s the job of financial planners to analyze the financial results of operations, document the facts to the top management & make recommendations on future operations of the firm.
To do all these functions effectively, financial planners first need to establish the financial objectives of the enterprise. Both long-term & short-term objectives ought to be established for the effective utilization of the financial resources. Then comes the next step of formulating policies. Policies are broad guidelines. Financial policies relate to procurement, administration & distribution of business funds. The next step financial planners must do is to formulate procedures. Procedures are the specific order of doing things. They are formed for ensuring consistency of actions. In financial procedures, the financial executives choose about the control process, create standards of performance & assess the performance. Finally, they must forecast the future. In order to take proper action to accomplish the objectives established, it is necessary to know the future positions. This is facilitated by forecasting the future.
While doing these activities, financial planners must take in to point of view the cost of finance & nature of business. In any assessment of the financial needs of the firm, the cost of finance is the basic criterion. This is so because only projects with net positive money flow can be selected.
It’s the job of financial planners to create the best designs to receive the necessary outside funds. They also help in establishing & maintaining a process of financial control governing the allocation & use of funds. Financial planners formulate programs to provide the most effective cost-volume-profit relationship. It’s the job of financial planners to analyze the financial results of operations, document the facts to the top management & make recommendations on future operations of the firm.
To do all these functions effectively, financial planners first need to establish the financial objectives of the enterprise. Both long-term & short-term objectives ought to be established for the effective utilization of the financial resources. Then comes the next step of formulating policies. Policies are broad guidelines. Financial policies relate to procurement, administration & distribution of business funds. The next step financial planners must do is to formulate procedures. Procedures are the specific order of doing things. They are formed for ensuring consistency of actions. In financial procedures, the financial executives choose about the control process, create standards of performance & assess the performance. Finally, they must forecast the future. In order to take proper action to accomplish the objectives established, it is necessary to know the future positions. This is facilitated by forecasting the future.
While doing these activities, financial planners must take in to point of view the cost of finance & nature of business. In any assessment of the financial needs of the firm, the cost of finance is the basic criterion. This is so because only projects with net positive money flow can be selected.
