What does a Financial Analyst do?
Financial Analysts gather, interpret, compile and present the financial data that is essential for an organisation to remain financially healthy.
They review an organisation’s accounting and finance documentation, extract and analyse important data from it, then create reports based on this analysis and the recommendations stemming from it. This work is usually done collaboratively and potentially across departments.
These reports are often communicated to clients, so Financial Analysts spend a large amount of time double-checking and proofreading, to ensure the organisation’s guidance is impeccable. Besides compiling reports, they also make presentations to management, meaning they also spend time composing graphics, slides and other visual communication aids.
Financial Analyst skills and qualifications
Successful Financial Analysts will possess a range of skills relating to financial literacy and data analytics in order to successfully carry out their duties. They should demonstrate a keen interest in and a detailed understanding of the world of finance, accounting and economics for the necessary background contextual knowledge for their work.
- Detailed knowledge of financial markets, business accountancy and economics,
- Fundamental accounting, financial planning and budgeting skills
- Attention to detail and the ability to identify patterns
- Fluency in financial analysis tools for performing statistical analysis, financial modelling and forecasting, as well as in other software related to spreadsheets, database management, presentation and report creation
- Good communication skills and the ability to work in a team
- An interest in keeping abreast of industry updates and changing marketplace conditions
- A good understanding of financial and accounting regulations
Financial Analyst experience requirements
How much prior professional experience you might ask from your candidates will depend on the seniority of the role you are offering.
In the case of junior positions, candidates could be expected to have between 0-3 years’ experience working in a similar position. In addition, the completion of an internship, either during undergraduate study or afterwards, can also count favourably towards a candidate.
For more senior positions, look for candidates with 3-5+ years of experience, working not just in related technical fields, but specifically in an Analyst role.
Financial Analyst education and training requirements
While a degree is not required for the position of Financial Analyst, it is advisable to advertise for candidates with at least a bachelor’s degree in a relevant field, such as finance, accounting, economics, business administration or commerce. Candidates who have completed an internship in a financial department will have also received valuable training for the role.
Financial analyst salary expectations
According to Indeed Salaries, the average salary for a financial analyst is $100,578. Actual salaries can vary widely depending on a number of factors, including position location, candidate experience and the specific company.
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Financial Analyst job description FAQs
What’s the difference between a Financial Analyst and a financial accountant?
A financial accountant is tasked with carrying out the financial operations of an organisation, including processing credits and debits, payrolls and taxes, as well recording primary financial data. A financial analyst, by contrast, takes the data produced by the activities of the financial accountant and then analyses it to produce higher-level information for stakeholders.
What makes a good Financial Analyst?
The core competencies of a superior Financial Analyst are excellent mathematical and analytical skills and effective, organised presentation and communication skills. Much of their work is carried out independently, so effective Financial Analysts should also be able to continue on technical tasks for long periods, managing their time effectively without close supervision.
Do candidates require a CFA to become a Financial Analyst?
A Chartered Financial Analyst (CFA) certification is not typically required to become a Financial Analyst, but it can be helpful. As the most widely recognised certification in the industry, the CFA goes a long way to guaranteeing a candidate’s technical aptitude for a position. Due to it’s requirement of at least four years’ relevant work experience, it is also a guarantee of a candidate’s prior professional experience.
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