What exactly does a Financial Analyst do?

A financial analyst is a popular career choice in the financial services industry. They are important to businesses, as they analyse market trends and recommend potential investments.

Depending on the financial corporations one works for the specific activities a financial analyst undertakes can vary, but the main responsibilities of a finance analyst involve:

·      Analysing financial data: Collecting and analysing data on a company to assess its financial performance. With this, make recommendations about investments.

·      Market research: Researching and staying up-to-date with market trends and industry news is vital to ensure effective financial analysis.

·      Forecasting: Using financial models to predict future financial performance, based on historical performance and market trends.

·      Budgeting: Creating effective budgets, by analysing revenues and other financial information. It is also important to keep track of the budget to ensure company is meeting its financial goals.

·      Risk management: Identifying any potential financial risks and create plans how to mitigate these risks to minimises risk of financial losses.

·      Financial reporting: Be able to present and report key information to stakeholders in an understandable and engaging way. Additionally, this could require expertise in particular tools used in the financial industry, such as Excel.

To become a financial analyst a Bachelor’s degree in a relevant subject is normally required, such as finance, economics, mathematics, accounting and statistics. A master's degree can be beneficial too. Gaining work experience through an internship or entry-level role is crucial to kickstart a career in financial analyst. There are also certifications financial analyst can take, such as the Chartered Financial Analyst (CFA) certification, which requires four years experience in this industry and a bachelor's degree.

We hope you found this useful and if you are considering a job in the financial services check out our jobs page or contact us for more information.