Financial Consulting

A financial consultant helps people or small firms understand money and make better choices. Learn the basics first.

• Define income, expense, asset, debt and net worth.
• Describe the difference between advice, education and selling a product.
• Explain who a consultant can serve: households, small firms, community groups.
• List words: budget, cash flow, interest, risk, return.
• Calculate net worth as assets minus debts for a practice household.
• Write the questions you ask in a first meeting: goals, time frame and worries.
• Explain what you will not do, such as promise returns or pick products you are not licensed to sell.

Activity. Write your own one-month income and expense list and mark what is fixed and what changes.

Standard to meet. Task: define core money terms. Condition: using your own month. Standard: five terms used correctly in a one-page table.

You cannot advise without reading numbers. Start with the three basic reports.

• Describe the income statement, balance sheet and cash flow list in simple words.
• Apply ratios: profit margin, debt to assets, days of cash.
• Check that records match bank statements.
• Explain why cash and profit are not the same.
• Calculate profit margin as profit divided by sales.
• Calculate days of cash as cash divided by daily costs.
• Compare two months of records and write what changed and why.

Activity. Read one sample set of small-firm records and write five plain-word findings.

Standard to meet. Task: read basic records. Condition: a sample set. Standard: ratios correct and five findings written in plain words.

Giving money advice is regulated. What you may say or sell depends on your licence and province. Check with the regulator.

• Explain that advising on investments, insurance or loans often needs a provincial licence; check the securities or insurance regulator.
• Describe the difference between a title like adviser and a protected title; check the current rule.
• Apply the duty to know your client and to avoid conflicts of interest.
• Check anti-money-laundering and privacy rules that apply to your work.
• Ask the provincial regulator which titles are protected and what registration they need; write the answer.
• Identify what you may do without a licence, such as teach budgeting, and what needs one, such as recommend a specific investment.
• Ask the regulator how long client records must be kept.

Activity. Build a rules table for your province: what you can do unlicensed, and what needs a licence.

Standard to meet. Task: map the rules. Condition: official regulator pages. Standard: each row has an enforcer, an action and a checked date.

A plan starts with the client's goals and facts, not with products.

• Build a client fact sheet: goals, income, costs, debts, savings, time frame.
• Apply a simple budget: needs, wants, savings; adjust to the client.
• Compare options for a goal such as an emergency fund or debt payoff.
• Write advice in plain words with the reason for each step.
• Calculate months of emergency fund as savings divided by monthly costs.
• Rank goals by deadline and importance with the client.
• Check the plan against the client's real bank records after one month.

Activity. Build a plan for a practice client using a fact sheet and a one-page action list.

Standard to meet. Task: build a plan. Condition: practice client. Standard: goals, facts, options and reasons all written in plain words.

Every choice has risk. Show it clearly and test the bad case.

• Explain interest, compound growth and inflation in plain words.
• Compute loan payments and savings growth with a free calculator.
• Evaluate risk: loss, delay, fraud, change in rates; give a bad-case number.
• Check claims such as very high safe returns; treat them as warnings.
• Calculate the interest cost of a loan: payment x number of payments minus the amount borrowed.
• Check a sales pitch by asking who is paid, what the fees are and what can be lost.
• Test a plan against price rises of 2% and 4% a year to see the change in buying power.

Activity. Test one savings goal and one loan at two interest rates and write what changes.

Standard to meet. Task: test a money choice. Condition: two rate cases. Standard: figures correct and the bad case explained.

Clients pay for clear results and trust. Be open about how you are paid.

• Build a one-page offer: who, problem, result, process, fee.
• Compare fee types: hourly, fixed, monthly; state them before work starts.
• Write an engagement letter with scope, fee, privacy and what you do not do.
• Track the funnel: contacts, calls, proposals, signed clients.
• Calculate the hours a case really takes, including prep and notes, and set the fee from them.
• Write what you do when a client asks for advice outside your licence: refer to a licensed person.
• Ask three small firms what money problem costs them the most.

Activity. Write an offer and engagement letter and book five discovery calls.

Standard to meet. Task: win a first client. Condition: four weeks. Standard: offer under one page and a signed letter with scope and fee.

Trust is your main asset. Never mix client money with yours.

• Apply the rule: keep client records private and locked, with strong sign-in.
• Check scams: fake invoices, urgent transfers, identity theft; teach clients to spot them.
• Explain why you never take client money into your own account unless the law and licence allow it.
• Create a record of advice given, with dates and reasons.
• List who can open client files and how long files are kept.
• Confirm identity before sharing any account details.
• Check that backups of client files are locked and tested.

Activity. Write a privacy note, a call-back rule and a risk register of eight rows.

Standard to meet. Task: protect a client. Condition: practice case. Standard: each risk has a control, an owner and a review date.

Now serve real clients within your licence and keep learning.

• Run a 90-day pilot with two or three clients, or a community workshop.
• Review each case: plan, result, client feedback, mistakes.
• Create a 12-month plan with licensing, learning and fee goals.
• Lead others: train a helper to prepare fact sheets and follow the checklist.
• Calculate hours worked, fees earned and cost per client at the end of the pilot.
• Compare client results with the goals in each plan.
• Identify one thing to learn next and add it to the 12-month plan.

Activity. Run the pilot, write the review and present your plan to a panel of three.

Standard to meet. Task: run a consulting pilot. Condition: 90 days, within licence limits. Standard: results compared with the stop rule and rules re-checked with the regulator.

L1: Finance aware learner. You can define: name the main terms, people and rules of financial Consulting. Focus module: Know what a financial consultant does (Understand, 6 h). A financial consultant helps people or small firms understand money and make better choices. Learn the basics first. Key points: Define income, expense, asset, debt and net worth. Describe the difference between advice, education and selling a product. Explain who a consultant can serve: households, small firms, community groups. List words: budget, cash flow, interest, risk, return. Calculate net worth as assets minus debts for a practice household. Write the questions you ask in a first meeting: goals, time frame and worries. Explain what you will not do, such as promise returns or pick products you are not licensed to sell.

Speaker notes. Teach: open with the worked example. A café owner earns 9,000 a month and spends 8,400. Income minus expense is 600, which is 600 / 9,000 = about 7% of income. The consultant first shows this in one simple table. Then set the activity: Write your own one-month income and expense list and mark what is fixed and what changes. Mark against the standard: Task: define core money terms. Condition: using your own month. Standard: five terms used correctly in a one-page table. Check at this level: What is net worth? Model answer: Assets minus debts. Level note: Start here if new. Evidence: a one-page glossary and a visit or interview note.

L2: Clerk or assistant. You can describe: explain how financial Consulting works from first contact to result. Focus module: Read basic money records (Apply, 6 h). You cannot advise without reading numbers. Start with the three basic reports. Key points: Describe the income statement, balance sheet and cash flow list in simple words. Apply ratios: profit margin, debt to assets, days of cash. Check that records match bank statements. Explain why cash and profit are not the same. Calculate profit margin as profit divided by sales. Calculate days of cash as cash divided by daily costs. Compare two months of records and write what changed and why.

Speaker notes. Teach: open with the worked example. A shop shows 2,000 profit on paper but 6,000 of customer bills are unpaid. Cash is 1,500 and costs are 2,700 a month, or 90 a day, so days of cash = 1,500 / 90 = about 17. The consultant shows the gap in a cash list. Then set the activity: Read one sample set of small-firm records and write five plain-word findings. Mark against the standard: Task: read basic records. Condition: a sample set. Standard: ratios correct and five findings written in plain words. Check at this level: Why are cash and profit different? Model answer: Profit includes unpaid bills; cash is money actually in hand. Level note: Evidence: a flow chart and a two-minute spoken explanation.

L3: Bookkeeper or junior analyst. You can apply: carry out a routine task in financial Consulting to a written standard. Focus module: Follow the rules in Canada (Apply, 10 h). Giving money advice is regulated. What you may say or sell depends on your licence and province. Check with the regulator. Key points: Explain that advising on investments, insurance or loans often needs a provincial licence; check the securities or insurance regulator. Describe the difference between a title like adviser and a protected title; check the current rule. Apply the duty to know your client and to avoid conflicts of interest. Check anti-money-laundering and privacy rules that apply to your work. Ask the provincial regulator which titles are protected and what registration they need; write the answer. Identify what you may do without a licence, such as teach budgeting, and what needs one, such as recommend a specific investment. Ask the regulator how long client records must be kept.

Speaker notes. Teach: open with the worked example. Rules table row: Investment advice | provincial securities regulator | registration needed before advising | before first paid advice | registration proof kept. If registration takes 8 weeks, the first paid advice cannot be before week 8. Then set the activity: Build a rules table for your province: what you can do unlicensed, and what needs a licence. Mark against the standard: Task: map the rules. Condition: official regulator pages. Standard: each row has an enforcer, an action and a checked date. Check at this level: Who regulates investment advice in Canada? Model answer: Provincial securities regulators; check yours. Level note: Evidence: a supervised task record that meets the standard once.

L4: Accountant or adviser. You can analyse: diagnose why a financial Consulting result missed its target and fix it. Focus module: Build a client plan (Evaluate, 8 h). A plan starts with the client's goals and facts, not with products. Key points: Build a client fact sheet: goals, income, costs, debts, savings, time frame. Apply a simple budget: needs, wants, savings; adjust to the client. Compare options for a goal such as an emergency fund or debt payoff. Write advice in plain words with the reason for each step. Calculate months of emergency fund as savings divided by monthly costs. Rank goals by deadline and importance with the client. Check the plan against the client's real bank records after one month.

Speaker notes. Teach: open with the worked example. Client has 6,000 in card debt at a high rate, monthly costs of 2,400 and no savings. First goal: one month of costs, 2,400. Saving 300 a month takes 2,400 / 300 = 8 months; extra payments to the highest-rate debt follow. Reasons are written. Then set the activity: Build a plan for a practice client using a fact sheet and a one-page action list. Mark against the standard: Task: build a plan. Condition: practice client. Standard: goals, facts, options and reasons all written in plain words. Check at this level: What goes in a client fact sheet? Model answer: Goals, income, costs, debts, savings and time frame. Level note: Evidence: a fault or gap analysis with a fix and a repeat test. This course targets this level.

L5: Senior adviser or manager. You can evaluate: judge options for financial Consulting against cost, risk and quality. Focus module: Find clients and set your fee (Create, 6 h). Clients pay for clear results and trust. Be open about how you are paid. Key points: Build a one-page offer: who, problem, result, process, fee. Compare fee types: hourly, fixed, monthly; state them before work starts. Write an engagement letter with scope, fee, privacy and what you do not do. Track the funnel: contacts, calls, proposals, signed clients. Calculate the hours a case really takes, including prep and notes, and set the fee from them. Write what you do when a client asks for advice outside your licence: refer to a licensed person. Ask three small firms what money problem costs them the most.

Speaker notes. Teach: open with the worked example. Fixed fee for a cash-flow review: 4 hours work plus 2 hours meeting is 6 hours. At 150 an hour that is 900. If the review really takes 8 hours, 900 / 8 = 112.50 an hour, so build prep time into the fee. Teaching figures only; check local prices. Then set the activity: Write an offer and engagement letter and book five discovery calls. Mark against the standard: Task: win a first client. Condition: four weeks. Standard: offer under one page and a signed letter with scope and fee. Check at this level: What must an engagement letter include? Model answer: Scope, fee, privacy and what is not included. Level note: Evidence: an options paper with numbers and a recommendation defended to a panel.

L6: Head of finance. You can create: design and pilot a new offer or process in financial Consulting. Focus module: Protect client money and data (Evaluate, 6 h). Trust is your main asset. Never mix client money with yours. Key points: Apply the rule: keep client records private and locked, with strong sign-in. Check scams: fake invoices, urgent transfers, identity theft; teach clients to spot them. Explain why you never take client money into your own account unless the law and licence allow it. Create a record of advice given, with dates and reasons. List who can open client files and how long files are kept. Confirm identity before sharing any account details. Check that backups of client files are locked and tested.

Speaker notes. Teach: open with the worked example. A client gets an urgent email from a fake supplier. The consultant has a call-back rule: confirm any new bank details by phone with a known number. The call takes 5 minutes and prevents a loss of the whole payment. Then set the activity: Write a privacy note, a call-back rule and a risk register of eight rows. Mark against the standard: Task: protect a client. Condition: practice case. Standard: each risk has a control, an owner and a review date. Check at this level: How can you spot a likely scam? Model answer: Promises of very high safe returns or urgent transfer requests. Level note: Evidence: a pilot with measured results over at least 30 days.

L7: Partner or chief officer. You can lead: run a team or business in financial Consulting and develop others. Focus module: Run your practice for real (Create, 8 h). Now serve real clients within your licence and keep learning. Key points: Run a 90-day pilot with two or three clients, or a community workshop. Review each case: plan, result, client feedback, mistakes. Create a 12-month plan with licensing, learning and fee goals. Lead others: train a helper to prepare fact sheets and follow the checklist. Calculate hours worked, fees earned and cost per client at the end of the pilot. Compare client results with the goals in each plan. Identify one thing to learn next and add it to the 12-month plan.

Speaker notes. Teach: open with the worked example. Stop rule: if the practice costs more than it earns after 90 days, change the offer. Three clients at a 900 fixed fee give 2,700; costs of 1,100 leave 1,600. Result and decision are recorded with numbers. Then set the activity: Run the pilot, write the review and present your plan to a panel of three. Mark against the standard: Task: run a consulting pilot. Condition: 90 days, within licence limits. Standard: results compared with the stop rule and rules re-checked with the regulator. Check at this level (this question is covered in module 5: Work with risk and numbers): Why test the bad case? Model answer: To see if the plan still works when things go wrong. Level note: Evidence: a record of results over a year and of people you have coached to a higher level.