Fee only financial planners talk about the one thing that should be taken into account "fee only" planners are compensated only by fees paid by its customers, and do not accept commissions or compensation from another source. National Association of Personal Financial Advisors (NAPFA) "fee only" planners is the largest organization.
Fee only financial planners main function is to develop a sound financial plan. A sound financial plan must be practical as well as simple. When there is complexity in financial planning will find it difficult to follow operating officers. It should be designed with a long-term vision. Investment, while designing financial and dividend policies, concern is also considered the long-term needs. Vision requires sound financial planning and forecasting. Proper financial planning is essential for predicting future design. It should be enough flexibility to incorporate changes in the plan.
Financial planning should ensure liquidity. Concern for the time ripe to be able to meet obligations. However, cash should be avoided at all costs to maintain profitability. It should also make sure the economy. That should be the minimum cost associated with various financial decisions. The best possible use of available resources to aim, especially financial need. A poor balance between fixed and working capital to use capital efficiently should be maintained.
Nature of business financial planning plays a pivotal role in designing. A capital-intensive industries like iron and steel requires more capital. In addition, stability and regularity of income, future growth prospects and demand for the product being manufactured by the firm in the volatility of capital needed to play a major role in determining capital structure as well. Important to determine the structure of venture capital in the business will be affected.
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