Summary: When someone uses a Personal Financial Advisor there is repeatedly a fee connected with the use of their services. When you look at the questions that Ray Wang was answering, I would argue that these are questions that a financial analyst is better qualified to answer. Independent analysis of issues and trends in enterprise applications software and the strengths, weaknesses, advantages, and disadvantages of the vendors that provide them. Such professionals help businesses and individuals to make wise decisions when selecting financial products.
Investment analysis, estate planning and retirement planning- financial advisors or planners offer these services. That is why, specialisation in financial planning applications and workflow process management is a must to become successful in this field. The main duty of investment banking professionals working in this field is to own and sell properties to and from other merchants at other financial institutions.
Research analysts- many investment banks appoint research analysts who have strong knowledge of specific industries and numerical principles. The accuracy of financial information largely depends on how accurately financial statements are prepared. If their preparation is wrong, the information obtained from their analysis will also be wrong which may mislead the user in making decisions.
Since financial statements are prepared by using historical financial data, therefore, the information derived from such statements may not be effective in corporate planning, if the previous situation does not prevail. Then financial statement analysis provides only quantitative information about the company’s financial affairs. Therefore comparative analysis of financial statements of different years can not be done as inflation distorts the view presented by the statements of different years. Equity markets don’t wait for economists to figure out the global impact of China’s struggling economy.
The skills used in the analysis without adequate knowledge of the subject matter may lead to negative direction Similarly, biased attitude of the analyst may also lead to wrong judgement and conclusion. The limitations mentioned above about financial statement analysis make it clear that the analysis is a means to an end and not an end to itself. The users and analysts must understand the limitations before analyzing the financial statements of the company. Investments range from railroads to insurance, from financial institutions to beverages.