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What are the roles and responsibilities of a Financial Advisor?


Who is a financial advisor?


A financial advisor is a financial planning partner. He/she provides financial advice to companies regarding all kinds of money matters such as investment management, tax planning, saving suggestions, and several other matters involving the flow of money. So, the companies can reach their financial goals sooner with accuracy. Financial advisory services in Mumbai provide top-class financial advisors who guide you in each step of financial planning. A financial advisor from the top CA firms in India will help clients plan for their long-term and short-term financial goals such as achieving profitability levels faster, controlling costs, expediting collections and carrying out corporate restructuring and/or merger and acquisition activity.


How does a financial advisor help in managing finances?


Financial advisors to companies are able to advise company management on the best way to conserve and grow capital, including how to manage working capital, reduce costs, collect revenues quicker and so on. Financial advisors also can track the company’s performance metrics and help to create and analyse various reports such as budget vs actuals, monthly P&Ls, sales metrics and so on. Further, at the beginning of each financial year, financial advisor an assist in building budgets for the upcoming year and additionally in also tracking the progress vs. that budget throughout the year


What role does a CA firm play in a company?


A CA can assist in implementing accounting systems in the company. It can also manage the accounting processes, prepare financial reports monthly, help in controlling the general ledger’s master data, and also ensure compliance with the tax department. Top CA Firms in India offer CA services that help in managing the full financial process of the company. CA firms also provide statutory audit services and internal audit services which are compulsory for companies to report on the financial health of the company as well as the company’s processes and risk exposures.


Why does a financial advisor need to monitor your accounts?


The most important role of a financial advisor is to monitor the accounts of the company. This way he comes to know about the exact amount of money received by the company and spent at the end of the month. Through this, he can determine the expenses, investments, and savings for the month. This will certainly help the company in the long term and will benefit them in terms of profit and clients. It also helps the company to plan its cash flows so that it does not face a cash crunch at any point in the year (e.g. in quarters where sales are low or income tax outflows are expected). A financial advisor also assists companies with their investment strategies by assessing their financial situation and making recommendations based on that. Financial strategies are executed by advisors considering all the angles of the plan as well as the company. So, it is always advisable to visit a financial advisor for any kind of financial or investment-related problem. He will guide you thoroughly and help you by curating customized financial suggestions as per your needs.