| To become a financial planner, you first must know | | | | the financial resources. Then comes the next step of |
| what their job profile is. Financial planners help in | | | | formulating policies. Policies are broad guidelines. |
| determining the financial resources required to meet | | | | Financial policies relate to procurement, administration |
| the company's operating program. They also help in | | | | and distribution of business funds. The next step |
| forecasting the extent to which these requirements | | | | financial planners have to do is to formulate |
| will be met by the internal generation of funds, and | | | | procedures. Procedures are the specific order of |
| the extent to which they will be met from external | | | | doing things. They are formed for ensuring |
| sources. It's the job of financial planners to develop | | | | consistency of actions. In financial procedures, the |
| the best plans to obtain the required external funds. | | | | financial executives decide about the control system, |
| They also help in establishing and maintaining a | | | | develop standards of performance and evaluate the |
| system of financial control governing the allocation | | | | performance. Lastly, they have to forecast the |
| and use of funds. Financial planners formulate | | | | future. In order to take proper action to achieve the |
| programs to provide the most effective | | | | objectives established, it is necessary to know the |
| cost-volume-profit relationship. It's the job of financial | | | | future positions. This is facilitated by forecasting the |
| planners to analyze the financial results of operations, | | | | future. |
| report the facts to the top management and make | | | | While doing these activities, financial planners must |
| recommendations on future operations of the firm. | | | | take into perspective the cost of finance and nature |
| To do all these functions efficiently, financial planners | | | | of business. In any assessment of the financial needs |
| first need to establish the financial objectives of the | | | | of the firm, the cost of finance is the basic criterion. |
| enterprise. Both long-term and short-term objectives | | | | This is so because only projects with net positive |
| should be established for the effective utilization of | | | | cash flow can be selected. |