Job Description of Financial Analyst

Job Description of Financial Analyst Job Description of Financial Analyst | Everything To Know4 min read Read ­ing Time: 3 min ­utesA Finan ­cial Ana ­lyst plays a cru ­cial role in the day to day func ­tion ­ing of a com ­pa ­ny. The job descrip ­tion of a finan ­cial ana ­lyst has var ­i ­ous fac ­tors into account. Like exam ­in ­ing the finan ­cial data of an orga ­ni ­za ­tion to help them make busi ­ness deci ­sions. These fac ­tors include mar ­ket trends, past trans ­ac ­tions of sim ­i ­lar nature as well as the com ­pa ­ny bud ­get. More specif ­i ­cal ­ly, Finan ­cial Ana ­lysts make busi ­ness pre ­dic ­tions and rec ­om ­mend a plan of action based on the com ­pa ­ny’s per ­for ­mance. In order to make eco ­nom ­ic pre ­dic ­tions, a Finan ­cial Ana ­lyst needs to be up to date about the devel ­op ­ments in their field. In sim ­ple terms, a Finan ­cial Ana ­lyst helps the deci ­sion mak ­ers of a com ­pa ­ny with the nec ­es ­sary infor ­ma ­tion to increase their rev ­enue. Here we elab ­o ­rate on the job descrip ­tion of a finan ­cial ana ­lyst. Role And Responsibilities Of a Financial Analyst The Finan ­cial Ana ­lysts work is cru ­cial for the finan ­cial plan ­ning and deci ­sion mak ­ing of a com ­pa ­ny. They keep track of a com ­pa ­ny’s finan ­cial per ­for ­mance and plan and per ­for ­mance in the dynam ­ic busi ­ness envi ­ron ­ment. This, there ­fore, helps in cre ­at ­ing fore ­casts and find ­ing out dis ­crep ­an ­cies between the fore ­cast and actu ­al per ­for ­mance. More ­over, a Finan ­cial Ana ­lysts job respon ­si ­bil ­i ­ties include: Con ­duct finan ­cial fore ­cast ­ing and met ­rics track ­ing. Deter ­mine the cost of oper ­a ­tions. Iden ­ti ­fy the com ­pa ­ny’s finan ­cial sta ­tus by com ­par ­ing pre ­dic ­tions with actu ­al results. Main ­tain a data ­base and con ­stant ­ly update it. Work close ­ly with the accounts team for detailed finan ­cial report ­ing. Per ­form mar ­ket research. Pro ­fi ­cien ­cy in Microsoft Excel. Strong Ana ­lyt ­i ­cal skills and prob ­lem solv ­ing skills. Ana ­lyze the com ­pa ­ny’s niche in the indus ­try and then eval ­u ­ate the per ­for ­mance of the com ­pa ­ny. Work on the vision of the com ­pa ­ny after tak ­ing into account the finan ­cial his ­to ­ry of the com ­pa ­ny. Spot lucra ­tive invest ­ment oppor ­tu ­ni ­ties and nev ­er miss an oppor ­tu ­ni ­ty. Qualifications And Skill Set A Finan ­cial Ana ­lyst needs to hold at least a bach ­e ­lor’s degree in a finance-relat ­ed major, like account ­ing, eco ­nom ­ics or sta ­tis ­tics. For greater oppor ­tu ­ni ­ties, an MBA in finance or any oth ­er Mas ­ter’s degree in finance is rec ­om ­mend ­ed. For the role of a finan ­cial ana ­lyst, there is no min ­i ­mum num ­ber of work expe ­ri ­ence. Pro ­vid ­ed you have a Mas ­ters in Finance. But some com ­pa ­nies might take an employ ­ee who is expe ­ri ­enced in the finan ­cial sec ­tor over a fresh ­er. Apart from these qual ­i ­fi ­ca ­tions, a Finan ­cial Ana ­lyst needs to pos ­sess the fol ­low ­ing skills: Strong data analy ­sis skills and the abil ­i ­ty to gath ­er data from mul ­ti ­ple sources. High pro ­fi ­cien ­cy in set ­ting and improv ­ing finan ­cial mod ­el ­ing tech ­niques. Excel ­lent pre ­sen ­ta ­tion and com ­mu ­ni ­ca ­tion skills. Exten ­sive knowl ­edge of cor ­po ­rate finance and infor ­ma ­tion analy ­sis. Strate ­gic think ­ing and smart deci ­sion-mak ­ing skills. High ­ly detail-ori ­ent ­ed. Be com ­fort ­able in deal ­ing with ambi ­gu ­i ­ty. Excel ­lent ana ­lyt ­i ­cal as well as quan ­ti ­ta ­tive com ­pe ­ten ­cy. Thor ­ough knowl ­edge of excel for ­mu ­las and func ­tions. Financial Analyst Job Description: Career Scope A Finan ­cial Ana ­lyst is one of the most pop ­u ­lar career paths in finance. This is main ­ly because ana ­lyt ­ics is in demand in every indus ­try which expands a Finan ­cial Ana ­lyst’s career scope. Besides, this field also has excep ­tion ­al perks like great earn ­ing poten ­tial. And since a Finan ­cial Ana ­lyst’s pri ­ma ­ry skill is to assist peo ­ple with their invest ­ment deci ­sions, they can also work as free ­lancers. They can also set up their own cus ­tomer base or even in invest ­ment bank ­ing. The career path or choic ­es avail ­able for a Finan ­cial Ana ­lyst look some ­thing like this: Senior Analyst: With more than three years of expe ­ri ­ence as a junior Finan ­cial Ana ­lyst, the next step is a Senior Ana ­lyst. There’s lit ­tle dif ­fer ­ences in the duties and respon ­si ­bil ­i ­ties of a Junior and a Senior Ana ­lyst. The flow of their work ­days is quite sim ­i ­lar. Portfolio Manager: Port ­fo ­lio Man ­agers are finance pro ­fes ­sion ­als who deal in invest ­ment port ­fo ­lios. They meet reg ­u ­lar ­ly with ana ­lysts to dis ­cuss indi ­ca ­tions of mar ­ket devel ­op ­ments and cur ­rent trends in the finan ­cial sec ­tor. Addi ­tion ­al ­ly, they do exten ­sive research to make effi ­cient invest ­ment deci ­sions regard ­ing a com ­pa ­ny’s funds. Chief Financial Officer: A Chief Finan ­cial Offi ­cer is the senior-most exec ­u ­tive. They are respon ­si ­ble for man ­ag ­ing and han ­dling the finan ­cial actions of a com ­pa ­ny. CFOs are the top-lev ­el finan ­cial con ­trollers who man ­age every ­thing asso ­ci ­at ­ed with finan ­cial plan ­ning, tax ­a ­tion, and cash flow. More ­over, a CFO is the third-high ­est posi ­tion in a com ­pa ­ny’s hier ­ar ­chy. Budget Analyst: Famous ­ly known as accoun ­tants or con ­trollers, bud ­get ana ­lysts are respon ­si ­ble for exam ­in ­ing the oper ­at ­ing cost of a com ­pa ­ny. And there ­by prepar ­ing bud ­get reports for the same. Investment Analyst: Invest ­ment Ana ­lysts are also known as Port ­fo ­lio Man ­agers. They eval ­u ­ate as well as draw invest ­ment strate ­gies for the com ­pa ­ny after ana ­lyz ­ing the invest ­ment data. The respon ­si ­bil ­i ­ty is to make the com ­pa ­ny aware of the var ­i ­ous pros and cons of each invest ­ment plan that they draw. Salary Since strate ­gic finan ­cial plan ­ning has become a neces ­si ­ty for a busi ­ness, the demand for Finan ­cial Ana ­lysts is cru ­cial in every sec ­tor. How ­ev ­er, the first few years of your career path may require you to work in tough con ­di ­tions. But you need to stick around. There ­fore, with expe ­ri ­ence in the field, you shall be look ­ing at a great career path ahead of you. Typ ­i ­cal ­ly, the salary brack ­et for a finan ­cial ana ­lyst in India is 4â€"4.5 LPA. It comes to an aver ­age of 33â€"37k per month. financial analyst job descriptionjob description of a financial analyst