financialtreat – will explain about Getting to Know About the Benefits of Independent Financial Advice that you will get in the following article. let’s look at this article carefully!
About this Independent Financial Advice is very familiar among business people. This term can also be known as audit. The purpose of this audit is to provide certainty for each stakeholder that the financial statements made are accurate, complete and in line with audit regulations.
Through the audit process in detail, financial auditors can see whether the internal control carried out by the company is correct or not. That’s why you need to know the audit process can increase the growth of a company or business. this can help analyze what may happen in accounting.
Benefits of Getting to Know About Independent Financial Advice
This can make it a motivation for novice business people and business people for a long time. Well, here is an explanation of the benefits of conducting a financial audit that has a positive impact on the growth of your business.
1. Maintain Compliance
When auditors check financial data, of course, they will ensure that a business organization has complied with all regulations established under applicable laws. If it turns out that the organization is found to have committed a violation and committed non-compliance, then the auditor can report it.
2. More Accurate Reports
When the financial statements are audited, the auditor will identify all loopholes before presenting the results to stakeholders. Thus the reliability of the reported data becomes more accurate and reliable.
3. Accuracy in Profit Determination
Financial audit helps the company to determine more precisely profitability because all figures are calculated as carefully and meticulously as possible. Therefore, conducting an audit can help you make the right decisions to improve the smooth running of business management.
4. Simplify the Loan Process
If the financial statements have been audited, it will be easier for financial institutions such as banks to lend money. Of course, this is because the audited financial statements are more reliable to their mainstays and are very unlikely to be falsified.
5. Detect Cheating
If there is fraud or fraud that may occur in the business organization, it can be detected immediately with the help of an audit. Because an auditor will always report the company’s financial data based on the authenticity of the facts found.
6. Increase Business Growth
An auditor is an independent party, so all views and suggestions given are impartial to personal interests. This means making auditors the right ideal party to provide financial advice in order to improve business systems, accounting practices, and corporate financial governance.
7. Assist with Planning and Budgeting
Financial audit helps to confirm the accuracy of the financial statements of a business by analyzing each transaction carried out. Thus the movement of money coming in and out can be clearly detaile.
Of course, this makes it easier for stakeholders to do better planning, budgeting, and financial decision-making in the future. After getting to know about its benefits.how do we seek the services of Independent Financial Advice.
Because to overcome this, a mentor who is an expert in their field is neede. Well here we will provide some stages before you choose financial advisory services, let’s look at the following steps.
Tips for Choosing a Financial Planner
1. Find a certifie financial planner
To make sure you choose a financial planner who consults, you can confirm whether the financial planner has a certificate or not. In Indonesia, the government only recognizes the Financial Planning Standards Board (FPSB) as the only governing body for the certification of the financial planner profession. This FPSB issues two types of certifications, namely:
- Certifie Financial Planner (CFP) for those who have complete four modules of education
- Registere Financial Planner (RFP) for those who complete a two-module education
In addition to aiming to obtain credible advice, choosing a certifie financial planner is important so that you can build trust. Because, when consulting later, you need to make sure the data you share is kept confidential.
2. Find a financial planner according to your needs
The financial planners have their own specifications. For example, there are financial planners who serve individual or family customers with incomes below IDR 10 billion per year. However, there are also financial planners who only serve customers with incomes above IDR 10 billion. Then, there are also financial planners who focus on consulting in the areas of investment options, insurance, business, taxes, and so on.
Make sure you ask for consulting services at the right financial planning institution. You can also ask prospective financial planners about the main services they offer, and the reasons why you should use their services compare to other financial planners.
3. Find out the rates charge
Look for several potential financial planners, both legal entities and individuals, that you want to use. Then, ask each of those financial planners for consultation. Also make sure whether they charge a commission for sales on the business or a return on the investment you consult them.
4. Ask for an example of a financial plan that has been made
There is nothing wrong with asking for an example of a portfolio in the form of a financial plan that has been made by a prospective financial planner. Generally, this financial planning document consists of financial goals and strategies for achieving them. This is to give you an idea of the services you will get, whether they are in accordance with your needs or not.
5. Choose an independent financial planner
Independent here contains the sense that he is not affiliate with a particular financial product. Because, if he is an extension of a financial product, then he is likely to give advice to customers to purchase such a financial product.
6. Find out the track record of financial planners
You can also find the track record of a financial planner by looking at reviews on the internet or digging for information from colleagues and relatives. Preferably, choose a financial planner who has the following track record:
- Can measure your personal risk. What includes personal risks here are family background conditions, work, debt, investment and savings preferences, and others.
- By knowing personal risks, financial planners not only talk about numbers to achieve financial goals, but also consider your risk factors when choosing savings, investments, budget allocations, debt management, and so on.
- Also choose a financial planner who is willing to hear your exposure when revealing your financial condition.
- Can provide feedback beyond your expectations. For example, let’s say you actually want financial management advice for the next year or five years.
- A good financial planner not only provides an overview of your finances to the extent of the financial goals you want to achieve, but also provides input for longer financial management. Because, it concerns the financial decisions you need to make now.
- Financial planners will be able to provide targete inputs if supporte by strong research and data on macroeconomics and the financial products he suggests.
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7. Make sure you only consult, not ask for asset management services
In Indonesia, an agency or individual financial planner is not allowe to manage assets. Because, the Indonesian government only allows companies that have a license as investment management as a legal entity that can manage assets.
So, even if you consult a financial planner. Make sure you do not entrust the management of the assets you have. Whether in the form of cash, stocks, savings, bonds, property. And so on, to the financial planner. Conversely, if a financial planner offers asset management services, know that it is very risky.
That’s a review of Independent Financial Advice.This information is about finance. That has a positive impact on the growth of your business. Hopefully, for business people who want to start or have problems in your business. It can be use as information to get out of these problems.