Financial Analyst

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A Financial Analyst is simply someone who works with, and analyzes financial data/information to help their company/business be more successful. There are many different types of Financial Analysts but this page focuses on the roles that are actually titled “financial analysts” within a company.

These analysts typically have academic backgrounds in business, finance or accounting majors and are numbers-driven individuals who are comfortable interpreting data and making decision recommendations based on that data. ¹

What Do Financial Analysts Do?

The responsibilities of a Financial Analyst can vary greatly depending where they work. Financial Analysts often manage budgets and give advice on the condition of the company’s finances. Additionally, they often have the responsibility to find potential areas where the business can expand or invest. In doing this, they may advise the appropriate individuals at the company to carry out the expansion or investment. ²

Furthermore, these analyst may e responsible for creating financial models that can predict the outcome of certain business decisions. In order to do this properly, they need to use a large amount of financial data while also taking in account factors like financial market trends and past, similar transactions. Overall, financial analysts play a significant part in providing a company’s decision-makers with the information they need to increase revenue and manage assets/their finances successfully.³

What types of Financial Analyst Jobs are out there?

Any company that needs to manage their finances (aka all companies) will have someone doing the work of a financial analyst, whether that is their title or not. A company’s “Chief Financial Officer” is usually the most senior financial analyst at company.

Essentially, you can find a Financial Analyst job in any industry and almost any company since budgeting, forecasting the company’s growth, etc. are always necessary tasks that need to be completed.

Typical Financial Analyst Hierarchy:

This hierarchy varies a lot depending on the type of financial analyst you are and the type of company you work at. However, below is a general progression a financial analyst might experience:

What types of skills are necessary to be a successful Financial Analyst?

Analytical skills – Financial analysts must be able to analyze a range of information to make the best possible financial decisions for the company.
Communication skills – Financial analysts need to communicate their findings in clear, easily-understood language (often via powerpoint presentations).
Technical skills – Financial analysts must be proficient at using computer software to analyze financial data, recognize trends, make financial forecasts, etc.
Attention to detail: Financial analysts must be able to pay close attention to detail because small mistakes can cause big problems for the company.
Decision-making skills: Must be confident and have strong decision-making skills to make financial recommendations. ⁴

What are some challenges of being a Finance Analyst?

Not easy trying to make data-driven financial decisions and insights.
Hours can be long if need to complete a project within a short time-frame
Can suffer large consequences if make a mistake when monitoring and managing a company’s finances (will sometimes be making/influencing big decisions on behalf of the company).
Work can get repetitive if your responsibilities are the same narrow subject matter (such as accounting or forecasting a company’s sales)

What are some benefits of being a Finance Analyst?

High demand job, because you can get this role in any industry and pretty much any company
Compensation is usually good
Hours are usually not bad, but this depends where you work
Can build strong relationships with clients and/or with your team
As a young financial analyst, there is often a sharp learning curve
Will become comfortable and somewhat of an expert in tools like Excel/Spreadsheets

Typical Salary?

Should I become a Financial Analyst?

If you enjoy working in finance, and/or want to be involved on the business side of any company, you should consider being a financial analyst. This career teaches you extremely transferable, and highly useful financial skills that are valuable at any company.

Working as a financial analyst at a non-investment related business is also an exciting way to join a team of a company that excites you without your necessarily creating their product and/or service.

Relevant Discussion Forums

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