Finance b0y!

Step 1: Setting goals with the client This step (that is usually performed in conjunction with Step 2) is meant to identify where the client wants to go in terms of his finances and life.

Step 2: Gathering relevant information on the client This would include the qualitative and quantitative aspects of the client’s financial and relevant non-financial situation.

Step 3: Analyzing the information The information gathered is analyzed so that the client’s situation is properly understood. This include checking whether there are sufficient resources to reach the client’s goals and what those resources are especially if you are into the Merchant Services sector.
Step 4: Constructing a financial plan Based on the understanding of what the client wants in the future and his current financial status, a roadmap to the client goals is drawn to facilitate the achievements of those goals.

Step 5: Implementing the strategies in the plan Guided by the financial plan, the strategies outlined in the plan is implemented using the resources allocated for the purpose.

Step 6: Monitoring implementation and reviewing the plan The implementation process is closely monitored to ensure it stays in alignment to the client’s goals. Periodic reviews are undertaken to check for misalingment and changes in the client’s situation. If there are any deviation or significant changes to the client’s situation, the strategies and goals in the financial plan are revised accordingly.

In the case of a company, managerial finance or corporate finance is the task of providing the funds for the corporations’ activities. It generally involves balancing risk and profitability. Long term funds would be provided by ownership equity and long-term credit, often in the form of bonds. These decisions lead to the company’s capital structure. Short term funding or working capital is mostly provided by banks extending a line of credit.

On the bond market, borrowers package their debt in the form of bonds. The borrower receives the money it borrows by selling the bond, which includes a promise to repay the value of the bond with interest. The purchaser of a bond can resell the bond, so the actual recipient of interest payments can change over time. Bonds allow lenders to recoup the value of their loan by simply selling the bond.

Another business decision concerning finance is investment, or fund management. An investment is an acquisition of an asset in the hopes that it will maintain or increase its value. In investment management – in choosing a portfolio – one has to decide what, how much and when to invest. In doing so, one needs to

* Identify relevant objectives and constraints: institution or individual – goals – time horizon – risk aversion – tax considerations
* Identify the appropriate strategy: active vs passive – hedging strategy
* Measure the portfolio performance

Financial management is duplicate with the financial function of the Accounting profession. However, Financial Accounting is more concerned with the reporting of historical financial information, while the financial decision is directed toward the future of the firm.

Along with protecting your investments, also look to save money with our saving tips.