To become a financial planner, you need to know their job profile. Financial planners help determine the financial resources needed for the operating program. They help in predicting the extent to which the requirements will be met by internal and external sources. The job of financial planners is to come up with the best plans to get external funds. Establishing and maintaining a system of financial control is one of the things they do. The most effective cost volume profit relationship is created by financial planners. The job of financial planners is to analyze the financial results of operations, report the facts to the top management and make recommendations on future operations of the firm.
Financial planners need to establish the financial objectives of the enterprise to do all of these functions efficiently. For effective utilization of the financial resources, both long and short-term objectives should be established. The next step is formulating policies. Policies have broad guidelines. Financial policies deal with procurement, administration, and distribution of business funds. Financial planners need to formulate procedures. The specific order of doing things is called a procedure. Consistency of actions is what they are formed for. Financial executives decide about the control system, develop standards of performance, and evaluate the performance. They have to predict the future. It’s important to know the future positions in order to take proper action. Forecasting the future makes this possible.
Financial planners need to take into account the cost of finance and the nature of business while doing these activities. The cost of finance is the most important criterion in assessing the financial needs of the firm. Only projects with positive cash flow can be selected.