A Financial Analyst is a professional that undertakes the task of providing insights related to decision making by several companies through rigorous study of the financial data followed by reports generated.
Responsible for researching both macro and micro economic situation, the analyst collects relevant information considering the policy of the company and then recommend or suggest the company to engage in decision making.
Roles and Responsibilities
Table of Contents
There are several kinds of job an analyst performs. Depending on the type of company he/she is employed in, the functions, as well as the responsibilities, vary drastically.
Also Read : Importance of Financial Analyst in a Company
Generalizing, a financial analyst would analyze the economic prospects of the company to draft financial plans, strategies, in the way of predicting information related to a business or industry.
A financial analyst is responsible for predicting data that has an impact on the investment programs. It is imperative that companies stay at par with the policies or regulations that otherwise might affect economy investments.
A financial analyst is expected to draft action plans that would be involved in a decision about the investment that needs to be done. The analyst needs to show reports based on the recent trends and then give a recommendation for indulging in expenditure. It is deemed as one of the most important jobs as the concerned person is responsible for taking an immense decision on behalf of the company.
Educational Qualifications or Skill Set
To enter the industry as an analyst, you must have a bachelor's degree. However, a masters degree would be a plus. For the job role of a junior analyst, you must be graduated with a bachelor's degree and have excellent communication skills along with expertise in decision-making skills.
Myriads of subjects are given preference for selection at the post of a financial analyst. Marketing fields include accounting, economics and finance whereas for an advanced level of recruitment employers with the skill set in subjects such as mathematics, statistics, physics and engineering are also considered suitable for the role of financial analyst.
For the senior post of business analyst, it is imperative to have a degree in MBA with expertise in a specific subject. Companies nowadays prefer employees with considerable knowledge of statistical packages as well as a spreadsheet.
Several specialization courses enable aspirants to opt for the role of a financial analyst.
One of the most prestigious certification for the post of a business analyst is CFA - Chartered Financial Analyst with international recognition.
Career Path of Financial Analyst
Any fresher Irrespective of its qualifications would start working under the guidance of a senior financial analyst. An employer with a bachelor's degree may see the need to revisit school after several tests of experience as the junior analyst to be suitable for the post of a senior analyst.
Junior analysts need to have additional degrees to receive benefits and promotions. On the other hand, a person with the higher skill set instead of masters degree would rapidly progress to a better post. The post is working as a senior analyst; the employer can then rise to the job of a supervisor. A junior analyst ks not deterred from promotion yet it is desirable that experts have additional degrees.
Any senior analyst that works in industries related to the security service would rise to the post of a fund manager or the manager of the portfolio and then would guide a team of senior analyst. There also lies a possibility that the analyst moves to the role of senior management. It is acceptable to have analysts overseeing a team of experts and also to supervise them.
Finally, the analyst with outstanding performance is entitled to the post of CFO, Chief Financial Officer who is responsible for performing all the financial tasks of the company.
Related Article : What are the Top Skills Required for a Financial Analyst?