Certified Financial Planner (CFP)

Certified financial planner is the name suggested by the International Board of Standards and Practices for Certified Financial Planners. To become a certified financial planner, you must pass a sequence of exams and join in current education classes. Tax preparation knowledge, investing and insurance is important for CFP (Certified Financial Planners).

Sales forecasts are usually the beginning point of the CFP jobs. Many financial variables are expected in the calculated sales level. So, the financial forecast correctness totally depends on the sales forecast correctness. Although the financial manager may join the process of producing the sales forecast, the main responsibility for it rests with the CFP.

Sales forecast may be ready for unstable planning possibilities to provide different intentions. A sale forecast for three to five years period, or for long durations, may be created mostly to help investment planning.

Sales forecast for a 1-year is the main basis for the financial forecasting exercise. Sales forecasts for small durations such as 6-3-1-month may be prepared for making possible working capital planning and cash budgeting.

There are 2 concepts working capital: net working capital and gross working capital. Net working capital is the difference between current liabilities and current assets. Gross working capital is the sum of every current asset. Working capital management refers to current liabilities management as well as current assets management. The main trust is on the current assets management.

This is comprehensible because current liabilities occur in the context of current assets. Management of working capital is a essential facet of CFP, as current assets investment stand for a substantial portion of total investment.