financialtreat – will explain about The Importance of Financial Consulting Services for Your Company which you will get in the following article. let’s look at this article carefully!
With the increasing human needs, the role of money in life is also increasing. With this, the use of financial knowledge in helping life planning is also getting bigger. Especially when doing corporate financial planning.
Before we know the importance of corporate financial planning consulting services, it never hurts to know what consultants themselves mean and what they do. According to the Big Indonesian Dictionary, a consultant is defined as an expert whose job it is to give instructions, considerations, or advice for an activity (research, trade, etc.); advisor.
The Importance of Financial Consulting Services for Your Company and Tips for Finding the Right Financial Consultant
So the consultant is a person not a company. A consultant is a professional who provides services as an expert advisor according to his field of expertise, such as accounting, environment, biology, law, and others.
The difference between a consultant and a ‘regular’ person is that a consultant is not an employee at the client’s company, but someone who runs his own business or works for a firm, but manages multiple companies at the same time.
When we make a plan to set up a company, be it on a small or large scale, we certainly need a financial consultant to create and organize so that the company’s financial position can be read and understood even though they do not really understand the field conditions.
Financial consultants are very important, because in a company the smallest expenses and income must be recognized on the budget balance sheet which leads to the issuance of financial statements every month. If we want to become a professional in running a business, regular administration is an important capital that will make the business run smoothly and we must pay attention to it properly.
Financial consulting services, nowadays, are actually needed and use by people living in develope countries. In contrast to developing countries like Indonesia, this job is mostly use by companies that want to expand their market and business people who do not have time to manage their personal financial planning.
Yet for anyone, financial management is very important. Why? Because there are many people who are trapped in various financial problems, such as investing wrongly, getting into debt, being wasteful (consumptive), and so on.
This actually does not need to happen if we understand how to manage assets or want to use the services of a financial consultant. It is highly recommende for people who have a low standard of living to start managing and improving financial management as early as possible and can be done by themselves.
Because there are still many assumptions that financial planning by yourself is still better than others. Indeed, to master financial matters self-taught, it takes quite a long time because research is need. However, as long as you still have free time, it’s better to do it all yourself. Especially with regard to personal financial management issues. However, it is different for people who have entere the establishe category in terms of age and finances.
With less free time, they usually need the help of others to plan their finances. Well, in conditions like this, the role of a financial consultant will certainly be very useful. So financial consulting services are very helpful in managing company finances to be much better than before and to help companies achieve the desire goals.
Financial consulting services can be use starting from the establishment of a company until the company will develop and become advance. There are many advantages that can be obtaine when companies use financial consulting services, especially in terms of company financial reporting so that they are easy to understand and serve as the basis for company decision making.
Steps to Find the Best Financial Advisor for Your Company
Thinking about using the services of a financial advisor is the same as using the services of a head of finance for your family. Of course you want to use the right process to find people you’ve worke with over the years. Here are six steps you can use to find the best financial advisor for you.
1. Understand the Types of Financial Advisors and Their Services
There are financial advisors who offer financial planning services but not for investment arrangements, there are also those who offer investment management services, but only a few for financial planning. In addition, there are financial advisors that offer fund income planning retirement with a different focus.
To find the best financial advisor according to your situation, you need to understand the differences in the service offerings provide, know which financial advice you need and know the services provide by a financial advisor. Usually there are 3 types of service offerings provide:
- Financial planning that focuses on all aspects of your financial life such as how to save and what type of insurance is need.
- Investment advisory which focuses on investment management functions such as what kind of investment is require. The best investments are selecte running with the financial planning process.
- Retirement income planning that focuses on how to coordinate social security, taxes, investments, retirement dates and so on. A financial advisor will assist in achieving the goal of providing a lifetime pension.
2. Find a Truste Financial Advisor
There are institutions that conduct training to give someone a degree of credibility to make someone an expert, namely by conducting training. Any financial advisor attending the event must pay.
To find a truste financial planning advisor, look for someone with a CPF or PFS degree. For investment advisors, look for one with a CFA degree. As for retirement income planning advisors, find someone who has traine and earne an RMA or RICP degree. Truste financial advisors are determine by passing or not all the exams held. In order to retain a degree, advisors must adhere to an ethics policy and meet all continuing education requirements.
3. Know the Fees of Financial Advisor
Many financial advisors can charge a fee. The most objective and truste financial advisors are paid. To use their services, you need to know that there is a compensation fee that must be paid, it can be hourly fees, participation in providing commissions and so on. You must understand the difference between a suitable advisory fee and one that does not suit your needs. Only certain advisors can receive fees base on the objectives to be achieve or the project.
There is no good or bad policy regarding the types of compensation. However, if you want to have someone who cares about updating your financial plan and answering your questions, then you need to pay according to the terms.
4. Perform Online Screening According to the Criteria
Online search engines are a good way to find advice base on postal codes, the credibility of a financial advisor or cost information such as hourly rates or job rates (no commission). Each online search engine allows you to enter specific criteria about what type of advisor you are looking for, such as their credibility and compensation (financing) methods.
In addition, this engine can search for financial planners that suit the needs of where you live. Choose a financial advisor base on his expertise, don’t choose because he is close but does not have reliable expertise.
5. Ask Some Questions Before You Use Their Services
There is a list of interview questions to determine how the financial advisor communicates, his area of expertise and competence. The key to the question aske should be understandable to you. Ask questions you understand. Don’t ask questions that you don’t understand or don’t know what the answers mean.
6. Verify Credibility and Check Service History
Before using the services of a financial advisor, you need to verify the legitimacy and history of its services by looking at the credibility and complaints of people at FINRA, SEC, CFP or other organizations. Infographic Objectives of Financial Planning and Professional Financial Planning Cover – Independent Financial Planner Finansialku
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Don’t Mistake Your Financial Advisor
If these six steps seem too much, think about your background and goals before deciding to hire a financial advisor. You are using their services to help in all aspects of your future financial life.
These six steps will help you to make the right decision to use the services of a financial advisor or not. And the rest I hope this information is useful.