Is cashflow modelling a necessity for adviser firms?
Cashflow modelling has become a crucial financial planning tool for many firms, but with every convert, there is a critic.
The financial advice sector is full of cashflow modelling converts. The ability to project a client’s financial future has proven to be invaluable, and as new technology advances and hybrid-advice models come to the fore, reshaping the traditional role of the adviser, the use of cashflow tools is expected to accelerate substantially over the next few years.
Jamie Smith, partner at Foster Denovo says “I use this modelling as more of a strategic or planning tool, and not for complex tax planning advice. Whilst it is great to create alternative ‘what if’ scenarios to help clients understand how different options compare, I would not depend on it to calculate future potential tax liabilities.”
Find out more and read Jamie’s comments in full, on professional adviser here.