Financial analysts are individuals in charge of financial planning and analysis and projection of businesses and companies. Financial analysts are responsible for forecasting different financial aspects such as revenues and expenditures to ascertain cost structures and decide capital budgets for different projects. Mostly, senior level financial analysts work with CFOs and other executive level members to ascertain company’s investment direction and policies.
In short, financial analysts have to provide with precise and data-backed information for company’s profitability, liquidity, stability and solvency. If you have a knack for handling finances and helping others, job as a financial analyst maybe an ideal career choice for you.
Basic roles, duties and responsibilities of Financial Analysts
So, what does a financial analyst do? Here are some key roles & responsibilities of financial analysts:
- Closely interact with managers regarding development strategies and plans
- Carry out financial researches to find out underlying loopholes
- Critically analyze the possible risks and outcomes
- Support and supervise staffs for responsible execution of changes
- Explain the reimbursements of your changes towards organization
- Administer testing and quality checks of your changes
- Recommend proceedings by interpreting and analyzing data
- Reconcile different transactions by cross checking and comparing data
- Protect financial operations of the company private
All organizations, be it a business house or a educational organization strives to be successful and increase its profitability and solvency. For this, they are constantly trying to evolve themselves and financial analysts help them do just that.
- IT companies
- Banks and other financial institutions
- Social and charitable organizations
- Government and public bodies
- Business organizations
- Corporate houses
- Educational institutes
Qualification and training
The first step in your road to be a financial analyst is to earn a bachelor’s degree. A degree in finance or business is most preferred. Financial analysts come from diverse academic background but have specialization in at least one finance related subject. Most financial analysts also have a post graduate degree in business administration. A MBA or related degree is not a compulsion but it gives you a competitive advantage
You have to work in the field of your choice for at least 6 to 8 years in finance-related management positions. As you gain necessary skills and experiences, you will move to higher positions with higher responsibilities.
After you have garnered necessary skills and experiences along with educational qualifications, you can apply for the position of financial analyst. Networking is a very essential part on your road to being a financial analyst. You have to take full advantage of your personal and professional contacts to land yourself a job as financial analysts.
Required skills or job specifications for Financial Analysts
The position of Financial analyst comes with great responsibilities . There are many vital tasks to perform for which one must build up certain skills:
- Good communication and interpersonal skills
- Ability to work under pressure
- Strong influencing personality
- Ability to inspire
- Strong leadership skills
- Problem solving abilities
- Good judgment
- Ability to make good negotiations
- Ability to build good rapport