Financial Analyst

What They Are - How To Get The job

Companies and corporations rely on the financial analysts for planning the finances, analysing and projecting the same. The crucial tasks of forecasting the company budget, revenues, cost and expenditure are taken care of by the financial analysts. A financial analyst works on capital budgeting for new projects. At the senior level, a financial analyst works with the CFO, while the associate level executives deal with the other finance related matters of the company. A financial analyst has expert accounting knowledge along with thorough knowledge about relevant laws and compliances. This helps in predicting the future of the company’s finance, and also makes it possible to deal with the everyday financial responsibilities of the company.
What is the job of a financial analyst?
The responsibilities of the financial analyst change based on the organization he or she works for. He or she is responsible for gathering data, organizing it, analysing the results, making forecasts, developing recommendations, building excel models, and making presentations. Then he or she generates reports based on all these activities. The crucial task is to deal with the important data, and at the senior levels, it is the development investment theses that come into the picture. Senior analysts interact with the company management teams, investors, and discuss the marketing ideas. In short, a financial analyst works at various levels to form the financing and investing decisions of the company. A well-informed professional, who is aware of the current trends of the industry helps in predicting the future economic conditions of the company.
Find the job responsibilities of the financial analyst below:
  • Analyse the past and present financial data of the company. Evaluate the financial performance of the company.
  • Preparing projections and reports based on the analysis and evaluation
  • Evaluation of the capital expenditures and depreciation of the current investments
  • Explore the investment opportunities and select the best suited one for the business
  • Coming up with new profit plans, after careful analysis and evaluation
  • Identifying performance trends and giving recommendations based on it
  • Help in improving the financial performance trends to avoid losses
  • Cross-team interaction and coordination to review the information and forecasts related to the company’s finance
  • Financial modelling and offering forecasts
Types of Financial Analysts:
Financial analysts work in the broad spectrum of organizations. The core job is to take care of the financial health of the organization. The tools used may vary, and there are different job responsibilities too based on the nature of the business. Here are the popular types of financial analysts:
  • Investment Banking Financial Analysts: An analyst who is an expert in the area of accounting, project financing, financial modelling, project valuation, and financial statement analysis works as an investment banking financial analyst. They require a thorough understanding of Excel and VBA, which is highly helpful in financial modelling. They are also an expert on banking and investment subjects.
  • Equity Research Analyst: An equity research analyst offers detail financial analysis and recommendations about buying and selling equities. Investment banking trends and other investment trends are often backed by research conducted by the equity research analysts and their teams.
  • FP&A Analyst: The Financial Planning and Analysis Analyst gives the analysis and data about the current economic and business trends. The past performance of the company is reviewed by them, and they analyse the potential troubles that might crop up in the future, and offer solutions as well. They analyse everything while keeping in mind the financial performance and future financial health of the company. It is becoming a popular position in start-ups as well.
  • Corporate Development Analyst: A corporate development analyst works to find the development opportunities in store for the corporate. The job responsibilities include financial statement analyses, financial modelling, strategic due diligence among other things. This position is found in big firms and companies mostly.
There are other types of financial analyst jobs too. But the key is to have a strong background in the finance and accounting sectors. You can consider your own strengths and choose the career option that best fits your skills and interests.
Getting a good financial analyst profile done:
While there are enormous opportunities for financial analysts, you should also be aware of the number of competitors. So, it is wise to prepare the right profile.
  • Describe your educational qualification. Your postgraduate or graduate degree in the specific discipline should be present. Usually, companies prefer someone with a professional degree such as a Chartered Accountant or a Chartered Financial Analyst.
  • Mention the additional qualifications or certifications you have earned in the niche of finance and accounts. If you have done short courses on specific investment areas such as risk management or arbitrage then mention that as well.
  • Technical skills like use of certain software for financial analysis and basic computer skills you have should be mentioned
  • Endorsements or references from previous employers
  • Links to previous works
Skills required for a good financial analyst:
When preparing yourself for the career of a financial analyst, you need to master a few skills to be successful, such as –
  • Effective general accounting skills and knowledge of basic accounting principles, techniques, and standards are required. In-depth knowledge of cost analysis, reduction, managing ledger, cash flow, and reconciling bank statements is required.
  • Interpersonal skills to help in effective communication and presenting projects
  • Finding a solution to the company’s debts and investment challenges is the key role of the financial analyst. So he or she must be excellent in problem-solving.
  • Knowledge of programming like SAP, Hyperion, SQL, and similar software programs is highly useful for a financial analyst.
  • Knowledge of current investment market trends, and keeping track of financial records is essential.
  • Predicting, planning, organizing, and identifying the financial problems of a company are the skills a financial analyst must own.
  • You should also have efficient analytical skills along with strong organisational skills.
Apart from these, it is essential to stay motivated and keep yourself updated about the current trends in the industry to be a successful financial analyst. 
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