Financial Analysis is a broad field and one can find a plethora of job titles and career paths to choose from. While the role of an analyst is a demanding job, it is not quite easy to break into the financial industry services. Scroll on to know more about a career as Financial Analyst.
So What Does a Financial Analyst Do?
A financial analyst is responsible for gathering data, analyzing results, recognizing financial opportunities for the business, and recommending suitable outcomes of how various business decisions will help the financial status of the organization.
Let us understand in detail what is the role of a financial analyst in the Finance Industry.
- A Financial Analyst keeps a record of current and past financial data to draw conclusions and identify the various trends. They need to collect various data like historical financial reports, stock price information, statistics data, accounting data from the general ledger, or any other type of quantitative data.
- After collecting the data, they generate reports based on the information collected and provide insights for the various business decisions. An analyst needs to be very good at working on Excel as well. They need to take care of organizing the data, cleaning it up, and presenting it in a sensible format.
- Once the data is organized, it’s time for Analysts to analyze the various reports and draw conclusions from the information generated.
- They need to constantly communicate with the management team to produce long-term commercial goals.
- A good financial analyst is not only good with numbers but also has to regularly suggest budgets and improvements based on the financial information generated that will help in the successful running of the company. This may include cutting off excess costs, increasing market share, considering ways of improving customer satisfaction, etc.
- Financial Analysts must always be on the lookout for new investment opportunities.
- Along with preparing useful data, a financial analyst must also be good at presenting the data in an understandable format to the other teams.
- Financial Analysts are responsible for developing financial-models and forecasts that help the organization to identify the expected future results. Analysts use several forecasting methods that help the company to predict how their business will perform in the future.
- Investment Banking Analyst, Equity Research Analyst, Financial Planning Analyst, Corporate Development Analyst, Private Equity Analyst, and Treasury Analyst are some of the most common types of Analyst Positions in the Finance Industry.
What to expect on the job as a Financial Analyst
You can be a successful Jr. Analyst if you can quickly adapt to making efficient use of spreadsheets, databases, precise PowerPoint presentations, and other essential tools and Softwares for analysis. Senior analysts, however, need to have much more skills to be successful in the field. They need to dedicate long working hours, be able to mentor the junior analysts, form strong interpersonal relations with their seniors and other teams, and also need to have good presentation skills.
Financial Job Analyst job outlook
A job as a Financial Analyst offers a plethora of job opportunities along with a promising career. As the overall economic activity in the country is growing, so is the need for financial analysts. With the increase in organizations and expansion of businesses, the need to recognize and evaluate new investment opportunities will also increase. The need for analysts experienced in identifying new markets with investment opportunities in various geographic locations is very much in demand.
Also Read: What is Financial Analyst Course