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<\/figure>\n\n\n\nWhat Does a Financial Analyst Do?<\/h2>\n\n\n\n
Financial analysts are vital in any organization; they are integral to a business’s financial planning and analysis department. <\/p>\n\n\n\n
They are responsible for predicting possible future revenue and expenditure as well. <\/p>\n\n\n\n
A financial analyst is also involved in budgeting and modeling capital structure.<\/p>\n\n\n\n
These professionals are also responsible for conducting market research and monitoring a business’s financial plan.<\/p>\n\n\n\n
By doing this, they are not only able to predict future performance but also analyze the variance between the forecast and actuals.<\/p>\n\n\n\n
This way, they can also identify the reason for the variance.<\/p>\n\n\n\n
These reports are presented to stakeholders; their information is used to make strategic business plans.<\/p>\n\n\n\n
A financial analyst is also responsible for forecasting risks and developing plans to avert or manage them.<\/p>\n\n\n\n
Read More: Zoologist Job Description| Duties & Responsibilities<\/a><\/p>\n\n\n\n Read also;<\/p>\n\n\n Here are some of the duties and responsibilities of a financial analyst commonly featured in a financial analyst job description guide:<\/p>\n\n\n\n A financial analyst must analyze, evaluate and compare past and present financial data.<\/p>\n\n\n\n By so doing, they can monitor trends and avoid past mistakes<\/p>\n\n\n\n Financial analysts conduct market research, monitor trends, forecast future performance, and calculate the variance between forecast and actuals.<\/p>\n\n\n\n After doing these, prepare, present, and interpret this information to stakeholders.<\/p>\n\n\n\n They also consult with stakeholders to make business plans to consider the information from their reports.<\/p>\n\n\n\n These business plans aim to improve business growth.<\/p>\n\n\n\n Read More: Cook Job Description | Duties and Responsibilities<\/a><\/p>\n\n\n\n A financial analyst also has to come up with innovative policies and initiatives.<\/p>\n\n\n\n These policies should be targeted at improving business growth.<\/p>\n\n\n\n Financial analysts analyze and evaluate financial data.<\/p>\n\n\n\n After which, they develop financial models for the business.<\/p>\n\n\n\n Some other duties and responsibilities of a financial analyst commonly featured in a financial analyst job description include:<\/strong><\/p>\n\n\n\n Read More: Accountant Job Description | Duties and Responsibilities<\/a><\/p>\n\n\n\n A bachelor’s degree in financial management, economics, or any other related field is the basic requirement for becoming a financial analyst.<\/p>\n\n\n\n Employers also seek those proficient in Microsoft Office suite and financial modeling tools.<\/p>\n\n\n\n It is also necessary for a prospective financial analyst to possess strong business acumen.<\/p>\n\n\n\n Typically, employers lookout for those with at least 3 years of experience in business finance or other similar fields.<\/p>\n\n\n\n Although not mandatory, a master’s degree in economics, accounting, financial management, or other relevant fields is preferred.<\/p>\n\n\n\n Employers may also prefer employing those with up to 5 years or more experience.<\/p>\n\n\n\n Improving your qualification and having more years of experience will also play a vital role in determining your pay.<\/p>\n\n\n\n Aside from academic qualifications, duties, and responsibilities, a financial analyst job description also contains certain skills.<\/p>\n\n\n\n Possessing these skills makes one stand out in this career path.<\/p>\n\n\n\n These skills are usually a combination of both soft and hard skills.<\/p>\n\n\n\n Some of the skills a good financial analyst must have included the following:<\/p>\n\n\n\n This skill is relevant when speaking with investors and\/or stakeholders about financial information.<\/p>\n\n\n\n It can greatly influence interpersonal skills as well.<\/p>\n\n\n\n As a result, a good financial analyst should be able to communicate in writing and verbally.<\/p>\n\n\n\n As one, you should be able to relate technical and non-technical financial information.<\/p>\n\n\n\n Also, communication involves listening as much as it involves speaking. Therefore, a good financial analyst should also be a good listener.<\/p>\n\n\n\n Accounting skills involve the knowledge you need to work effectively in finance.<\/p>\n\n\n\n It includes basic knowledge of mathematics, accounting principles, calculating a budget, cash flow management, cost analysis, and reduction, bank statement reconciliation, and general ledger.<\/p>\n\n\n\n There is certainly no way a financial analyst can succeed without these skills.<\/p>\n\n\n\n Read More: Pharmacist Job Description | Duties and Responsibilities<\/a><\/p>\n\n\n\n Interpersonal skills are required in practically every career path.<\/p>\n\n\n\n Financial analysts are also relevant in developing and maintaining good relationships with investors and colleagues.<\/p>\n\n\n\n Often, the financial analyst makes use of accounting and bookkeeping software.<\/p>\n\n\n\n Therefore having a good knowledge of using some of these skills for financial analysis makes the work easier.<\/p>\n\n\n\n Some such software includes SQL, SAP, and Hyperion.<\/p>\n\n\n\n These skills also play a relevant part in learning to use new software quickly.<\/p>\n\n\n\n Not all problem solvers are financial analysts, but every financial analyst should be a good problem solver.<\/p>\n\n\n\n They should be capable of solving a financial equation and finding a good solution to a company’s financial problems, such as debt.<\/p>\n\n\n\n A financial analyst may be the head of the financial department or team.<\/p>\n\n\n\n Therefore, it is also important for them to possess all the necessary leadership skills.<\/p>\n\n\n\n Read More: Web Developer Job Description | Duties & Responsibilities<\/a><\/p>\n\n\n\n This is very similar to leadership skills.<\/p>\n\n\n\n A good financial analyst should be able to manage not just humans but also funds and resources.<\/p>\n\n\n\n This soft skill comes into play when a financial analyst is required to organize records and financial data.<\/p>\n\n\n\n Therefore, every financial analyst should be organized and detail-oriented.<\/p>\n\n\n\n Often, critical thinking and problem-solving skills are combined.<\/p>\n\n\n\n But they are not the same. In as much as a financial analyst needs to be a critical thinker to solve financial problems.<\/p>\n\n\n\n Critical thinking is not only important in solving problems, it also helps financial analysts make big and serious decisions.<\/p>\n\n\n\n As well as develop innovative plans and policies that can improve business growth.<\/p>\n\n\n\n This skill helps financial analysts give accurate forecasts, solve financial problems and prioritize activities.<\/p>\n\n\n\n As you can see, its importance cannot be overrated.<\/p>\n\n\n\n Some prospective financial analysts possess and exhibit practically all of these skills.<\/p>\n\n\n\n Whereas others may need to improve on them.<\/p>\n\n\n\n Here are some tips on how to improve financial analyst skills<\/strong>:<\/p>\n\n\n\n Read More: Copywriter Job Description | Duties and Responsibilities<\/a><\/p>\n\n\n\n In the United States, the salary of financial analysts ranges from $48,000 to $152,000 per year.<\/p>\n\n\n\n On average financial analysts make up to $80,000 per year.<\/p>\n\n\n\n These figures may differ depending on your location, experience, and employer.<\/p>\n\n\n\n A lot of businesses and companies require the services of a financial analyst.<\/p>\n\n\n\n But, some of the typical employers of financial analysts include:<\/p>\n\n\n\n When creating a resume, you should include relevant information to convince an employer that you are suitable for the job.<\/p>\n\n\n\n You may want to improve your skills, experience, and qualifications.<\/p>\n\n\n\n Your skills should be highlighted in your resume and cover letter as well.<\/p>\n\n\n\n During the interview, it is not wise to underestimate the importance of referring to your skills and experiences.<\/p>\n\n\n\nWhat are the Duties and Responsibilities of a Financial Analyst?<\/h2>\n\n\n\n
#1. Analyse Past and Present Financial Data<\/h3>\n\n\n\n
#2. Preparing and Presenting Financial Reports<\/h3>\n\n\n\n
#3. Assist Stakeholding in Developing Feasible Business Plans. <\/h3>\n\n\n\n
#4. Come up with Innovative Policies and Initiatives that can Improve a Business’s Financial Growth<\/h3>\n\n\n\n
#5. Financial Modeling<\/h3>\n\n\n\n
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What Academic Qualifications Do I Need to Become a Good Financial Analyst?<\/h2>\n\n\n\n
What Skills Does a Good Financial Analyst Need?<\/h2>\n\n\n\n
#1. Communication Skills<\/h3>\n\n\n\n
#2. Accounting skills<\/h3>\n\n\n\n
#3. Interpersonal Skills<\/h3>\n\n\n\n
#4. Technical Skills<\/h3>\n\n\n\n
#5. Problem-Solving Skills<\/h3>\n\n\n\n
#6. Leadership Skills<\/h3>\n\n\n\n
#7. Management Skills<\/h3>\n\n\n\n
#8. Organizational Skills<\/h3>\n\n\n\n
#9. Critical Thinking Skills<\/h3>\n\n\n\n
#10. Analytical Skills<\/h3>\n\n\n\n
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How Much Does a Financial Analyst Make?<\/h2>\n\n\n\n
Where Does Financial Analyst Work?<\/h2>\n\n\n\n
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What Should I Include in My Financial Analyst Resume?<\/h2>\n\n\n\n