Be Equipped with a Diploma of Financial Planning

If you think being a financial advisor is easy, think again. The aspiring can't just undergo process and become one overnight. That is because you have to have enough knowledge and skills first before you can work as a financial advisor. Since you will be giving both personal and general advice on financial planning, you have to possess certain skills and master some principles related to the field.

Having a Diploma of Financial Planning is what you need. It will allow you not just to learn the basics of financial planning, but also to learn the skills that will equip you as you pursue a career in such a field. Furthermore, since it is among the requirements for you to obtain certification from ASIC, you have to invest in it. After all, formal training and certification are necessary in almost every field.

Be sure to get your diploma only from an accredited institution so you can avoid any problems when you proceed to your ASIC accreditation. Be aware that getting a Financial Planning Diploma from a widely-recognized center has several advantages. One of them is landing financial planning jobs more easily; when you are known for having training from a prestigious institution, combined with your skills and impressive knowledge, you are more likely to attract clients.

Certificate IV: What Exactly Does It Mean?

Australia's workforce qualification operates on a ten-point system, with level one (Certificate I) being the most basic. The standard for education and employment is usually within level four (Certificate IV), which means a person has the proper knowledge to perform specialized work. You can get this level of skill from technical and further education (TAFE) schools, which differ from universities. A Certificate IV accountant is capable of performing more specific tasks in accounting.

A Certificate IV accountant must fulfill the standard number of units of competency, a total of 21 units all in one package. Take note that the units for a Certificate IV accountant isn't the same as Certificate IV for bookkeeping. According to the Institute of Certified Bookkeepers (ICB), the same qualification level for a bookkeeper has eight less units than that for an accountant. TAFE schools are tasked with providing this learning package for individuals to meet the certification.

While it isn't the top of the competitive hierarchy, a Certificate IV is a good springboard for landing the right job. Most companies and agencies set a Certificate IV standard for fields like accounting. If you want to be a professional in a certain field, a Certificate IV won't be enough; you'll have to go up the hierarchy, beyond level five (Diploma). Of course, you stand a better chance in getting a good job that way.

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Starting up Your Own Bookkeeping Biz

Say you have discovered your calling as a bookkeeper. You've accomplished a certificate course in bookkeeping and have earned some spurs as an apprentice in an accounting firm. Now you are ready to strike out on your own by setting up a bookkeeping practice. Thing is, where do you even start with the skills you have?

Decide on a specific venue for your practice, whether it is located in a room at home you've designated as your office or some office space downtown. Map out your business plan, which includes future expansion plans and projected earnings. Take the time to plan your pricing system; are you charging customers per-hour or monthly and are they reasonable? Once this is done, apply for operating licences with the local business registration authorities.

With the venue and the necessary permits acquired, start securing the various materials you will need for the operation. These include some office furniture, a computer with bookkeeping software, and office supplies like paper, pencils, and other stationery items. You can then start promoting your business to  prospective clients, such as business operators, through various advertising methods.

Crunching the numbers is indeed a tough challenge for people with moderate knowledge of business math. On the bright side, you help business owners keep watch on their finances.

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Bookkeeping: An Ally Against Corruption

Transparency International ranks Australia as one of the least corrupt nations in the world, tied with Norway at 85 points. The Australian government wants no less than to keep that clean image for a long time. This is why companies and government agencies are required to submit to Australian law, lest they face the strong arm of justice in or out of the country. For that, they must uphold transparency in any activity they make, be it marketing strategies or infrastructure projects.

The task of transparency falls under the bookkeeper, a person who keeps track of an entity's activities. Minutes of meetings, receipts, financial reports, and other documents go to him where they're neatly organized for future use. Allegations of misuse of funds or other forms of corruption demand no less than solid evidence. Anything kept by the bookkeeper can serve as evidence to support or deny these allegations and keep the quality of governance crystal clear.

Bookkeeping, in general, has a major role to play in transparency. It has to fight the $1-trillion industry known as corruption—as per a World Bank report—with documents, records, or anything that can provide solid proof. Corruption is present in every economy, which is why measures must be taken to ensure the trustworthiness of the agency in question. Prevention, according to experts, is the prime emphasis on this campaign.

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Superannuation Mastery in RG146 Courses

Some people looking into taking up RG 146 courses to qualify as a financial adviser consider specializing in superannuation. In Australia, superannuation refers to the retirement funds people get from the government based on the compulsory provisions their employers have paid for, on behalf of them, prior to their retirement.

Although there were existing superannuation arrangements prior to 1992, it was Paul Keating's Labor government which made the Superannuation Guarantee system compulsory. It was put forward as a way of coping with a major rise in the aging population over the coming decades, which will put a strain on the national economy if the current pension system is not reformed.

Although the succeeding administration of John Howard did nothing to increase the rate of superannuation to 15%, the total amount of superannuation assets as of 2011 amounts to $1.28 trillion, making Australia the biggest investor in managed funds per capita. Access to one's fund prior to retirement, however, is very strict. Except for severe financial hardship and expensive medical treatments covered by Medicare, preserved benefits are not accessible to workers until they reach a 'preservation age'.

Preservation age varies on a person's date of birth, as the age of retirement is expected to move up as more people retain their fitness to work for a longer period. People born before July 1, 1960 reach preservation age when they turn 55, while those born after 30 June 1964 are expected to retire when they're 60.

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Seek RG146 Training from a Trustworthy Institution

Regulatory Guide 146 (RG 146), formerly known as Policy Statement 146 (PS146) is a certification that is needed for anyone to sell financial services or become a financial adviser in Australia. Involved here is a certain amount of training to make sure that not only will you have the knowledge but also the skills that are needed for such a field. It is also your ticket to doing business.

Just think: because the financial services industry is well-regulated in Australia, it means that not being able to comply with its high standards could lead to trouble in the near future. After all, it is their means of protecting their people from possible scams and other fraudsters who just want to take advantage of others. Plus, it is a way to make sure that sellers of financial services are skilled enough before they operate.

This means that if you want to achieve this level of expertise, you have to invest in your training before you completely delve into this field. You have to ensure that you do not just have the background that's necessary; you have to make sure that you trained under an institution that is accredited wherever you are in the country. This way, you can avoid a whole slew of difficulties that could plague you in the future.

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How to Contribute to your Super Fund

By definition, superannuation funds are special accounts for employees which they can access once they retire. The Australian government sanctions the creation of super funds, and has companies set up contribution accounts for their employees per the Superannuation Guarantee (administration) Act 1992. If you have signed up with a certain super fund, you'll need to know what kinds of contributions are made into them. These are split under concessional contributions (which are taxed at only 15 percent if they do not exceed Act limits of $25,000 per fiscal year) and non-concessional contributions (which are not tax-deductible but still follow the above cap).

The most common of them all is the employer contributions, wherein the employer sets aside 9 percent of your ordinary time earnings, but this does not apply to anyone with monthly wages under $450. These are marked as concessional contributions.

Non-concessional super contributions take a lot of forms. Personal contributions are after-tax additions  put into the account, but these cannot be accounted when applying for an income tax deduction. Spousal contributions are made on an eligible spouse's behalf. You and your employer can also agree to make a salary sacrifice wherein part of your gross pay will be put into the account. The government may even make a co-contribution if you've made personal contributions within your pay grade.

A super fund will take care of your financial needs after your retirement. In this respect, you will need to set aside money way in advance. 

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