Financial analysis is a hot field right now. It has experienced a boom due to the rise of cyber technology and in startup culture. Existing organizations have become bigger while new startups and enterprises are mushrooming across India. All of this increases the demand in financial analysis. Which in turn makes it a sought-after field for aspiring students and current finance professionals.
The good thing about financial analysis is that anyone can transition to it from another field. This is even a more valid proposition for those already in the finance and accounting fields. You just need a bit of training and skill learning to enter the field. Here’s how.
Entering the Field of Financial Analysis
The first thing to do when you attempt this transition is to understand the differences between accounting and financial analysis.
Accounting deals with inspection and handling of financial records, bank statements, and balance sheets of an organization. As an accountant, you will need to go through files after files and check if the math fits right. If it doesn’t, you report it for further investigation. An accountant also takes care of taxes, filing returns, and other financial activities such as billing.
Financial analysis, on the other hand, is a bit more advanced concept. Here in addition to the inspection of financial records, you also provide advice on how the organization can make better decisions. Essentially, your role would be to assess all historical financial dealings of the company and provide them with counsel on ways they can improve their financial decisions in future.
Another aspect of the role – something you can learn more about in financial analysis courses – is that you will work with an additional set of skills and tools. You will work more with concepts like trend analysis, cash flow analysis, and working capital to name a few. The processes will be slightly different than the accountant role because here your main task is analysis.
How to Make the Switch to Financial Analysis?
If you are an accountancy student or are working as an accountant somewhere, the next step would be to start learning about financial analysis. There are three ways to do this:
• Take a financial analysis course. This is the most recommended way as you will both learn about concepts and earn a certificate that you can use to land job interviews. There are many online courses available that will give you a good peek into the field. You can also do this part-time while working at your existing job
• Learn individual skills. Start with the ones that are mentioned above plus others through online courses. The advantage of learning individual skills is that you can learn about them in more depth. All of this will prepare you better in future when you actually work as a financial analyst
• Get an internship. This may require you to leave your current job but the experience will do you good. An internship at a financial analysis firm under the tutelage of experienced professionals is another great way to learn more about the field
You can also do all three of them at once if you are focused and determined to get into financial analysis. But if you want to take it safely ahead while keeping your current job, enrol on a financial analysis course and start learning about it on the side. This will also help in the rare case that you lose interest in the field midway. This way you can still get back to your primary job. Start your learning today!
Also Read: How To Become Financial Analyst With No Experience
