Wednesday, January 7, 2009
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Certified Financial Planners
By: Eric Morris
Certified financial planner is a title conveyed by the International Board of Standards and Practices for Certified Financial Planners.
To become a certified financial planner, one must pass a series of exams and enroll in ongoing education classes.
Knowledge of tax preparation, insurance, and investing is essential for certified financial planners.
The sales forecast is typically the starting point of the certified financial planner jobs.
Most of the financial variables are projected in relation to the estimated level of sales.
Hence, the accuracy of the financial forecast depends critically on the accuracy of the sales forecast.
Although the financial manager may participate in the process of developing the sales forecast, the primary responsibility for it typically rests with the certified financial planner.
Sales forecasts may be prepared for varying planning horizons to serve different purposes.
A sales forecast for a period of 3-5 years, or for even longer duration’s, may be developed mainly to aid investment planning.
A sales forecast for a period of one year (and in some case two years) is the primary basis for the financial forecasting exercise.
Sales forecasts for shorter durations (six months, three months, one month) may be prepared for facilitating working capital planning and cash budgeting.
There are two concepts of working capital: gross working capital and net working capital.
Gross working capital is the total of all current assets.
Net working capital is the difference between current assets and current liabilities.
The management of working capital refers to the management of current assets as well as current liabilities.
The major thrust, of course, is on the management of current assets.
This is understandable because current liabilities arise in the context of current assets.
Working capital management is a significant facet of certified financial planners, because investment in current assets represents a substantial portion of total investment.
Financial Planners provides detailed information on Financial Planners, Certified Financial Planners, Fee Only Financial Planners, Become A Financial Planner and more.
Financial Planners is affiliated with Financial Service Companies.