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What has to be done to aspire for becoming a consultant in the field of finance?
Financial consultant undergoes mandatory classes on various aspects of financial planning and becomes a certified financial planner. They need to obtain license and regulation to carry out their duties. A financial planner or advisor offers advice to the clients regarding investment strategies, investment bonds, mutual funds and stocks. Their help is necessary for the people nearing his or her retirement. There are various methods by which one can start his career as a financial planner or advisor. But, it will take a lot of time and effort to establish oneself in this field and requires a lot of commitment from the person to be recognized in the long run.
Deciding to take up financial consultancy as a career
Financial advisor career is no doubt a rewarding one. But, the profession demands certain skills and exhausting hours from the person aspiring for the position. It is a common belief that finance field involves calculations and mathematics. But, this profession is mostly about being people-centric, having great communication skills, and ability to provide benefits for the families in protecting them from the financial crisis. Explaining the family about different existing options in making investments and other financial aspects is also a duty of the financial planner. The process of investment has become easier due to technological advancement while the process of conveying various methods and complexities of investment still requires time, effort and experience.
- Those who start their career as financial planners sometimes have to work for no pay during their initial days of the career. So, it is important for you to know whether you are ready to undergo this stage if it becomes necessary.
- Traditionally, advising or planning in finance involves sales. Here, the individual has to be incessantly involved in collecting the clients and keep convincing them to invest.
- Handling the clients when they reject to invest is very important step that can judge your career as a financial advisor.
- Professional organizations involved in financial advising will concentrate on strong relationships with the clients and tend to serve them during the time of investment in their lifetime.
What is the sequential program of becoming a financial planner?
The person aspiring for this career has to obtain a bachelor’s degree primarily. A four-year degree is compulsory for getting a license and become a certified financial planner. Degree in finance, economics, mathematics, accounting or computer science is helpful to the individual aspiring for financial advising. The Major subject need not be always in the accounting as long as the person can complete the program and handle the deadlines. After obtaining a degree, you need to get some work experience, get trained, get licensed and be prepared to work hard in order to become a financial planner.
How do you select your financial planner?
First, identify the financial planner whether he or she is a certified professional. They should have undergone classes inevitably on financial planning in some part of their career. The financial planner has to be licensed. These are the primary requirements of a financial planner.
Look for certain characteristics of a financial planner
Monitor the pay structure of the financial advisor and check whether the person mostly depends on the commission rather than the normal fee that is charged per hour. The person taking the commission as part of his earnings may not be unbiased in directing you in a right path. The code of ethics followed by the financial planner must be watched for, and he must be using the word “fiduciary”. The language and behavior of the person have to be monitored closely to assess their interests in taking care of you.
- Financial planners will help the clients to find ways of investing money, save it, and grow it.
- They can be beneficial to you in making you understand your financial position and making you decide about tackling with the bigger property investments.
- The financial planners will help you to evaluate your money status and provide the entire view of your capacity to handle your money at large.
- Some planners are specialized in estate and retirement plans while some will focus on a wide range of other financial aspects.
- Financial planners do not handle trade stocks and are not stockbrokers.
Planners are different from financial accountants who help you to handle your tax bills effectively. They are dissimilar from the insurance agents who are at the back of you to tie you up with insurance policies. They are also different from those who compel you to enter into some mutual funds.
Some more features to be seen in a financial planner that you going to hire
Anyone into this career of a financial advisor cannot be considered as an expert. A certified financial planner tested efficiently by the certified financial planner board of standards on the specificities of personal finance is considered as an efficient financial planner. These certified professionals have to continue their education on financial aspects and the classes in the code of ethics to regulate their position as advisors. Sometimes, it can happen that those advisors who have passed this certification exam might be short of the skills and credentials. As this is all about handling your precious money, it is important for you to be careful in selecting the right advisor. Most of the financial planners earn when they are paid for their counsel. They expect you to pay them a flat hourly pay or an annual fee of some percentage of your assets or investments or college savings or other accounts. Some charge their clients just like the lawyers.
Education and duties of an accountant in the field of finance
This article focuses on the education necessary for an individual to aspire the position of a financial accountant. What are the necessities and particulars of the relevant degree program, any desired certification or job duties to check whether this job is suitable for you? Financial accounting relies on double entry book-keeping processes where every transaction is documented in the account columns. The main purpose of accounting itself is to offer the information that is necessary for taking proper economic decisions.
Main function of accountants in finance
Accountants tackle with the financial records of the company and help the company to classify and maintain the records. The accountants are also expected to be handling functions like inventory processing, tax reporting, and program administration. Financial accountants will have to complete certified public accountants program to go further in their careers. This certification has to be accompanied by the educational programs set by the state, work experience or internship and licensing necessities.
Accounting is the business language and learning it is necessary for anyone who intends to decide on the financial information. The students of financial accounting will develop essential skills for analyzing financial disclosures and statements and will learn how the standards of accounting influence financial reporting.
What are the degrees and job duties of an accountant?
The educational degree of an accountant to pursue his career is Bachelor’s accounting degree and preferably Master’s accounting degree. The bachelor’s course focuses on teaching a way of recording financial transactions, operating activities and corporate investments into three major financial statements. The job responsibilities of an accountant include maintaining accounts, keeping track of the financial records and supervising tax payments. The accountants handle the financial records with the help of advanced technology while computing, classifying and monitoring the company financial records. They are also responsible for integrating billing and software applications to prepare financial statements.
Accountants are also responsible for handling the transactions and statistics associated with the travel accounting, equipment management, payable accounts and finances.
- Financial accountants, serving the certified public accounting (CPA) company function as external consultants for third party companies maintaining their financial records.
- In the first half of the April month, the financial accountants in CPA Company help the public to file their taxes for the state, federal and local governments. The accountants make the people estimate the amount of money they owe to the government.
- Some public accountants and certified professionals are specialized in working along with the government to identify any associated crime through the transactions and financial statements.
- This method of accounting is called forensic accounting, and they act as witnesses in the crimes that are identified through the financial records.
Information about financial reporting
Accounting in finance is a distinct form of accounting procedure that aids in tracking the financial records of the company. With the help of certain standard principles, all the transactions are collected and recorded in the form of a financial statement. Balance sheet and income statement are examples of a financial statement.
Purpose of preparing financial reports of a company
Financial statements of a company are regularly issued to the outside people. The people who receive them primarily are stockholders or owners and some investors. If the stocks of a company are publicized, the information regarding the financial statements of that company will be accessed by its competitors, employees, investment analysts, customers and labor organizations. The value of the company is not reported through financial accounting. But, accounting will offer sufficient information for the people to estimate the value of the company by themselves.
The financial statements of a company are made public and are accessed by many people in a variety of ways. Therefore, financial accounting possesses certain regulations called standards of accounting and generally accepted accounting principles or GAAP to prepare those statements. In the United States, FASB or the board of financial accounting standards will develop the relevant rules and regulations. The public trading of the company stocks must comply with the requirements of an agency of the United States government called security and exchange commission.
Accounting principles in brief
The accounting standards of financial accounting will be beneficial to the company to prepare its reports that are trustworthy, easily explicable, and that can be compared easily with that of the other companies.
- GAAP is set with the help of certain basic principles like economic entity, reliability, cost principle, full disclosure, matching principle, relevance, and conservatism.
- GAAP comprises of certain complex standard principles that are made in response to certain business transactions.
- The accounting techniques and practices that were particular to an organization or a utility or insurance or banking are addressed by GAAP. These practices are resulted from the alterations in the industry regulations made by the government.
- Peculiar pronouncements released by FASB are included in GAAP. FASB conducts research on the current financial needs and brings up latest amendments to the accounting rules to satisfy the current needs.
Financial accounting will help in creating external and general purpose financial statements. These statements include the statement of cash flow, balance sheet, income statement and statement of equity of stockholders. The profits of a company at a specific period are reported by the income statement. The balance sheet is represented by the assets, stockholders’ equity and liabilities for a specific date. The statement of cash flow represents the financial activities, operating activities, and investing activities. Stockholders’ statement indicates the change in the stockholders’ equity made for the period for which income and cash flow statements were made.
How does the expertise of an external consultant help in the business?
A consultant is a professional or an expert in a specialized field, and he possesses extensive knowledge in the concerned subject. The development and growth of a business is governed by properly indulging into that particular business, understanding the requirements of its changing market, latest technology trends, and its competition intensity and so on. It is all the more important for a successful business to have an effective team that can share and work for achieving the vision of the organization. The traits mentioned above do not hold good for all the businesses and business owners due to certain constraints related to the time, the importance of pre-business experience and several other concerned facts.
How can a consulting company evaluate a business?
Business consultants can estimate a business and strive to provide a correct solution to improve the current business and reflect the growth of it effectively. An effective business consulting firm functions as an enterprise beginning with the launch of the company, articulating the business plan, commercially exposing the firm, and working towards the growth and sustenance of the firm. The consultant firm will get an idea about your business fears and offers you a right advice. The business firm provides solutions to certain issues that include
- Marketing & branding and business development strategies
- Drafting the agreements and MOUs
- Content management and collaborations
- Strategy of implementation of information technology
- Efficient development and deployment of the process
- Online and internet marketing strategy
The Approach of a company in offering consulting services
Businesses look forward for flexible and responsive procedures and processes. An in-depth knowledge of the current industry on par with the other companies and technical expertise are essential for the business consultants to provide a number of solutions. Business transformations can be achieved by the positive association of the business consulting departments with the prominent global enterprises. The consultants help their clients to bring out new operating models, to invent productivity enhancing procedures, to motivate the value and performance of the corporate and to understand more about innovation. The consultants of the business will help the firm to pick up their domain knowledge on par with a range of industries and provide the firm with immense capabilities.
The consultants of a company’s business offer a summary of the current practices of the company and provide certain suggestions for the business improvement. These experts are often specialized in an area of business management like human resources. To improve the shipping department of a distribution center, they have to hire a logistics based consultant. A healthcare consultant can be hired by any of the hospitals to improve its employee training programs. The job responsibilities of the consultants of business include analyzing business practices, reviewing financial statements and assessing the opponents.