Financial planning as the name suggests are the methods or process of cleverly and wisely managing the finances so that monetary goals can be achieved alongside negotiations of financial barriers that seem to spring up at every crossroad of the journey!
Financial Planning is an assessment and evaluation of a persons current as well as future financial condition by using appropriate variables to foresee and predict future cash flows, asset values and plans of withdrawal if any. This planning warrants the use of a budget and a plan to organise an individuals finances and may include a series of measures and steps for spending and saving for the future.
Most of us have hopes and aspirations for ourselves which include buying a house, saving for higher education, or even taking that long sought after vacation.A retirement fund is also something that needs to be planned along with the present financial needs.
A financial planner hence is some person or an agency that helps an individual or a company that negotiates the challenges in doing the financial planning. He has the expertise and knowhow of exactly the type of financial program an individual or company may require at a given point of time. He is in a position to lend a third party view to trending financial plans and schemes. They help in setting realistic financial objectives and goals by assessing the present financial situation by running through the current, assets, liabilities, income and so forth. This helps in deciding upon a comprehensive plan which can go a long way in achieving monetary and financial goals.
While going ahead with financial planning with a budget in mind, it becomes important to draw in the services of a tax accountant as well.
A tax accountant basically handles company and individual taxes, audits and keeps a track and record of all of them. The primary task of a tax accountant is to calculate the earnings, fill in the documents and provide accurate tax statements.
An accountant of this calibre may work for an individual client or be a public tax accountant handling more than one client or companies simultaneously. He is responsible for understanding the prevailing market trends and also any agency and government regulations that may exist. He uses this knowledge to ensure that the clients or firms are in tune with the tax preparations and submissions of taxes properly. They are trained to understand research, translate and interpret tax laws applicable to the state as well as the country.
Financial planning done with fore sight and accuracy and operated within the legal parameters of tax declaration, submission and accountability makes the entire gamut of financial activities streamlined and simple. Working within the task laws means that the financial activity is legal and hence the risk of violation is eliminated.