Certified Financial Planner Exam, How Important It Is

When you speak of a certified financial planner, it’s a title that’s being given by the International Board of Standards and Practices to Certified Financial Planners. If you want to become one, you have to pass a certified financial planner exam, and before that of course, you have to undergo CFP training. Even if you have already passed the qualification tests and have your certificate, you still have to take continuing education to update your knowledge especially in the fields of tax preparation, insurance and investing. These are very much essential especially to the certified financial planners.

The main starting point of a certified financial planner as a job is the term sales forecast. You see, a lot of variables that are involved in finances are usually projected usually in relation to the estimated level of sales. Because of this, an accurate measurement of financial forecast almost depends entirely on how accurate the sales forecast are. Financial managers may join in the process of making these sales forecast but this task is mainly and is resting on the arms of a certified financial planner.

Before you take your certified financial planner exam, you have to be familiar with the terminologies and jargons in the world of financial planning. Sales forecasts for example are prepared on different views of planning and they serve different purposes as well. Typically, a sales forecast lasts for a period of 3 to 5 years or even longer depending on the plan that was created. Now, a sales forecast that’s ranging from only about a year or two is usually the main basis for the forecasting exercise. Even shorter sales forecasts can be made for working capital planning and cash budgeting.

Working capital has a couple of concepts that you may want to hear about and they are gross working capital and net working capital. The former describes the total of all current assets and the latter is about the difference between the current assets and liabilities. Managing the working capital mainly focuses on the current assets and the current liabilities with emphasis on the assets. There are just samples of the concepts that you are about to learn when you take a certified financial planner exam. There are other theories and principles that you will learn and you have to work harder to master each one and eventually be ready to face your tests.

Once you have passed the examination and already declared as a certified financial planner, you will then have to take classes once in every two years. The reason is simple. The finance industry is constantly changing and you have to keep abreast with these changes if you want to be sharp as always. Being a certified financial planner can be your best career only if you work hard and do your part.

A Certified Financial Planner holds the power to create your financial future. The only job you have to do is obey their suggestions and stick on the plans that they have created as they are experts when it comes to the movement of the market as well as the finance industry. If you want to become one, learn more about certified financial planner exam now.