Significance of Financial Advisory for Your Foreign Business
November 23, 2016
Financial Planning and advisory is one of the most crucial components of any business planning. Whether you are trying to start out as an entrepreneur or are looking to scale up your already established business, financial adviser will be a significant part of the process. You may think that you could do well without a financial adviser, but as the business activities escalate you will need to have a financial expert on board who would understand your situation and can devise a plan to fulfill your business requirements accordingly.
What does a financial advisor do?
For those who have very little about financial advisory and its experts, a financial adviser is an expert who understands financial planning and financial analysis of a company. Your financial adviser advises you on every activity that may impact the outcome of your business. Financial advisors include financial auditors, analysts and planners who are trained with advanced financial and accounting certifications, such as ACCA and CMA, and years of experience to handle complex financial situations.Financial advisers also assist you with company formation in Dubai by handling all the accounting paperwork that you may find daunting.
Financial advisory process
Your financial adviser usually performs 4 main steps mentioned below:
- Initial company introduction: The first step of the process includes initial introduction of your company where you describe your company’s assets and liabilities to a financial adviser. This step involves an overall review of your financial situation to help your financial adviser understand where your business stands and how much risk your business can take in the coming years. Your financial adviser will also analyze the current market and industry trends in Dubai to measure your position against those trends.
- Financial analysis: The second step of the process is financial analysis. This step involves an extensive analysis of information that you provided to your financial advisor in the first. Your advisor will also examine your competitive position and your strengths and weaknesses in terms of finance and investment. In addition, this steps involves your in-depth comparison with your competitors to identify the cracks that can be filled get to you one step ahead in the market. Many financial auditors in Dubaiworkout the financial plan at this stage.
- Financial advisory meeting: The third step of the process is the financial advisory meeting where you and your financial adviser sit down with all the stakeholders and partners to discuss the possibilities of financial investments and debt payment (if any).
- The financial plan: The final step is the financial planning process. In this step, your financial adviser along with your financial strategist and plan document the necessary steps that you need to take in order to fulfill the financial goals of your business.
Financial planning is a step-by-step process that requires two main exports: a financial strategist and a financial adviser. Usually both experts work together to devise a strategy financial plan for your company. Your financial adviser they look at everything from accounting do resource allocation and everything in between by your financial strategist will handle the documentation and implementation of the financial plan. Make sure that you have a highly expert financial advisor on board before you make any important financial decision.