What is Financial Consulting?

Financial consulting refers to the act of a natural or legal person with financial and accounting and related professional knowledge to accept commissions to provide clients with business solutions, planning, and guidance services. The meaning of financial consulting should be very broad, whether it is to accept financial consulting for professional services entrusted or subordinate financial consulting that is subordinate to comprehensive management to provide consulting services. Should be indispensable. Therefore, financial consulting can be broadly defined as: consulting services provided by consulting companies, securities companies, investment banks and other professional organizations and their professionals to clients, investors, and other clients in relation to financial management such as asset management and securities investment. That is, all financial consulting services activities are financial consulting in a broad sense.

Financial Advisory

Right!

Financial consulting refers to having financial and accounting and related

Financial consulting is a kind of management consulting in theory. To analyze the connotation of financial consulting, we must first understand the meaning of management consulting. Consulting, in the traditional sense, refers to soliciting opinions from others, asking for help, or giving ideas, suggestions, and plans.

Theoretically, finance is the principal input and income activity. Under the framework of "big finance", the financial theory system can be divided into national finance, corporate finance and household finance. This is mainly based on the different division of financial entities and their characteristics. . From another perspective, the financial activities of each financial entity (country, enterprise, and family) can be divided into independent financing and entrusted financing according to the nature of their business. Among them, independent financial management can be divided into independent decision-making financial management and consulting decision-making financial management. At the same time, independent decision-making and financial management does not really depend on its own ability to make independent financial decisions. Financial consulting often implicitly influences and cultivates the ability of financial management subjects to make independent decisions. Therefore, experts believe that financial consulting plays an important role in financial theory. Especially with management

1. Construction of financial organization structure and ability development of financial personnel to enhance the leadership and influence of financial organizations

2.Analyze and diagnose corporate financial management capabilities and potential risks and provide improvement plans

3. Strengthen the management accounting function, quantitatively analyze business results, and provide support for management decisions

4. Establish and improve a comprehensive budget management system to ensure that business objectives are achieved

5. Establish and improve the internal control risk prevention system and sort out and analyze business processes

6.Create value for enterprises through tax planning

7. Analysis and improvement of working capital efficiency

8. Cost strategy and control of the entire value chain

Financial consulting is of great significance to both macroeconomic operations and corporate and personal financial management activities. It has the following functions:

The business scope of financial consulting is very wide. The consulting business includes both physical asset consulting and securities asset consulting, as well as financial consulting, financing, investment and daily management of financial entities. Specifically, in foreign countries, financial consulting services usually include financial valuation, operating capital and liquidity management, mergers and acquisitions, investment project analysis, accounting system design, budget control,

The different nature of the consulting business required by the client determines that there must be differences in the service goals and service methods of various financial consultations, and thus different types of financial consulting have arisen. As far as the current status of the financial consulting business is concerned, financial consulting can be roughly divided into the following three categories according to the nature of the business and service goals:

Industry Investment Evaluation

This type of financial consulting is similar to the social assurance business provided by accounting firms. The purpose of consulting services is to provide objective and constructive views without interest. Professional consultants conduct in-depth analysis based on surveys and collected data, and make predictions for the future based on existing analysis. It is based on honesty and professional service, and adheres to the "three public" principle, that is, it does not sell products or promote deployment, but only provides independent analysis. This type of financial consulting business is generally carried out by professional financial consulting companies.

Financial overall service

This type of financial consulting focuses on providing customers with professional and comprehensive services to obtain the benefits and returns due to the transfer of knowledge and mental labor. Professional consultants mainly provide a complete set of planning and planning services related to financial operations and management of enterprises and individuals. They pay great attention to market segmentation and differentiation, and emphasize the expertise of the business field under the condition of providing overall services. Tailor-made solutions and provide personal services. This type of financial consulting business is generally carried out by professional financial companies, comprehensive management consulting companies, securities companies, and some accounting firms that provide consulting services.

Affiliated value-added services

The purpose of this type of financial consulting is to expand the main business. Professional consultants use a series of financial management tools to provide customers with professional and comprehensive financial analysis and financial advice, and take into account product sales. This type of financial consulting business is mainly carried out by financial institutions such as banks and insurance companies.

The scope of the financial consulting firm includes:

1. Acting bookkeeping and financial consultant;

2. Tax agency and tax consultation;

3. Agent capital verification, audit, tax report;

4. Annual inspection of agency licenses;

5. Agent business registration;

6. Agent trademark and goodwill registration;

7. Agency contract;

8. Finance staff training;

9. Other enterprise management consulting and information consulting.

Financial consulting covers a very wide range. Among them, securities investment consulting is one of its most important components. It affects the investment behavior of investors and the development of the capital market.

In the western developed countries, the investment consulting business sprung up when the capital market was established. In 1920, the world's first investment consulting company was established in Boston, USA, and the securities investment consulting industry began to develop. The formal development of China's securities investment consulting industry started in the early 1990s. It has begun when the securities market was initially established. After the leap-forward development in the 1990s, a new industry with broad prospects has gradually formed.

With the rapid development of the capital market, the securities investment consulting industry has flourished. Affected by the global economic integration, the securities investment consulting industry has shown two major development trends. One is the coexistence of internationalization and localization of consulting business, and the other is the development of professionalization and comprehensiveization of consulting business. Under the influence of these two major development trends, the development of China's securities investment consulting industry is facing unprecedented opportunities as well as huge challenges. The main problems that plague the development of the securities investment consulting industry are how to keep the consulting business objective and independent, and how to prevent moral hazard.

There are not many institutions in the Chinese securities market that can provide clients with absolute and independent advice. For example, stock appraisal experts who provide investment advice for securities companies are difficult to escape from the stock trust; certification firms such as accountant firms provide subsidiary financial advice Business, it is difficult to excuse it from using social forensic status to bundle consulting for personal gain. In particular, the blackout of the securities investment consulting business exposed by the Enron incident in the United States prompted the U.S. government to fine US $ 1 billion to various securities companies and intend to spin off its consulting business and develop into a consulting agency serving small and medium investors to ensure the market s healthy growth.

Due to the complexity of securities investment, securities investment consulting services do not entirely rely on a certain theory to make predictions and provide recommendations, and often rely on subjective experience to judge. In this case, if a decision is made incorrectly and the customer is harmed, litigation may result. However, the reason for the failure is difficult to determine whether it is the subjective and deliberate misleading of the consulting agency or consultant or the true objective technical error. Therefore, it has objectively increased the difficulty of clearly dividing the boundaries between legal liability and moral hazard, which can easily cause misunderstandings among customers, which will increase the pressure of financial consulting work, which is very unfavorable to the development of the securities investment consulting industry.

Therefore, continuous and in-depth research on the financial consulting theory should be conducted to properly solve various problems in the development of the financial consulting industry.

Financial consulting and accounting services

1. Provide policy advice to promote healthy economic development

Financial staff who provide services not only have deep professional theoretical knowledge, but also have rich practical work experience. They are familiar with tax, finance, accounting, and industrial and commercial regulations, so that the client's economic activities are subject to discipline Be healthy and orderly.

2. Provide business consulting to promote economic benefits

3. Provide information consultation to improve the competitiveness of enterprises in the market

Financial consulting Investment consulting

To handle registration procedures for registered companies; assist enterprises in drafting investment agreements, contracts, articles of association and other economic documents; conduct investment environment assessments; edit and analyze feasibility studies of investment schemes.

Financial Consulting Management Consulting

1. Analysis of economic activities

2.Financial consulting

The main contents of financial management consulting include fund-raising management, investment management, operational decision-making consultation, production decision-making consultation, inventory decision-making consultation, and equipment purchase decision-making consultation.

3. Management decision consulting

Management decision consultation includes business decision consultation, marketing decision consultation, production decision consultation, inventory decision consultation, equipment purchase decision consultation, etc.

4. Accounting audit consultant

As an accounting and auditing consultant, we must answer difficult questions encountered by clients in daily accounting and internal auditing operations.