It is the International Board of Standards and Practices for Certified Financial Planners that consider a person a certified financial planner. If you want to be called a certified financial planner, there are certain requirements that you have to accomplish. First, you must be able to pass a number of examinations. Secondly, getting yourself enrolled in continuing education classes is also a must. Having expert knowledge regarding tax preparation, investing, and insurance is a must when it comes to certified financial planners at http://capstonecap.com/.
If you talk about what goes on in the job of certified financial planners at http://capstonecap.com/adam-dawson/, they first deal with sales forecast. The projection of most financial variables will have to depend mostly on the estimated level of sales. Thus, how accurate your sales forecast is will be the one that will tell about how accurate your financial forecast is. There may be times where during the development of sales forecast, the financial manager will take part in the process. Even so, the certified financial planner will be the one taking the major responsibilities when it comes to sales forecasts.
Sales forecasts will have to be prepared in different horizons of planning. Furthermore, sales forecasts have different purposes. The purpose is for investment planning if the certified financial planner develops a sales forecast that will last for longer periods of time such as a period of 3 to 5 years. On the other hand, it is because of financial forecasting exercise when the certified financial planner will be making a one or two year period of sales forecast. It will have to be because of cash budgeting and working capital planning when sales forecasts are being developed by the certified financial planner to last a shorter duration such as six months, three months, and one month. Learn more about financial planners at https://en.wikipedia.org/wiki/Financial_planner.
Working capital is another area where certified financial planners play a significant role. You should know that there are two main concepts when it comes to working capital. The first one is what you call gross working capital while the second net working capital. If you talk about the total of all of your current assets, then you are referring to gross working capital. When it comes to the difference between current liabilities and current assets, then you are dealing with net working capital. When it comes to the management of working capital, then you should know that it is about the management of both current liabilities as well as current assets. Nonetheless, it will have to be the management of current assets that is the major thrust. This is an expectation owing to the fact that current liabilities only arise if current assets are present. Working capital management is something that a certified financial planner plays a significant role in. The reason being that investing in current assets means that it has an effect on one’s total investment.
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