What Do Financial Analysts Do?
Financial analysts are hired by companies to help with their investment potential.
Big companies or small companies, all of them are concerned with their growth and success in monetary terms, and they spend years and years trying to achieve this objective. And most CEOs don’t have the skill to analyze market trends and devise strategies accordingly.
This is where financial analysts come in. They are professionals hired by companies to analyze their current position and to suggest strategies for financial stability and growth.
What does a Corporate Financial Analyst do?
A financial analyst is a person responsible for tracking an organization’s financial performance. They analyze business performance and market conditions to create forecasts, and help senior management make tactical and strategic decisions by providing periodic reports.
Where a financial advisor may give consultation to entrepreneurs on how to manage their finances to gain a profit, financial analysts are hired by big companies to analyze their financial records, suggest on their investment potential and give expert advice on how to convert to maximum sales and monetary benefits.
Types of Financial Analysts
There are a few types of financial analysts that work in different companies to help with their investment strategies and objectives.
Portfolio Supervisors: These experts administer a group of different analysts and decide the items, enterprises and areas on which to center their organization’s investment portfolio. They are liable for the general exhibition of the portfolio and are particularly elaborate with regards to meeting with speculators about investment choices and procedures.
Fund Managers: Fund administrators supervise multifaceted investments or common assets. They should be certain leaders since their occupation expects them to settle on split-second choices to purchase or sell contingent upon the present status of the market.
Ratings Analysts: These experts screen the ability of different organizations or governments to reimburse their obligations, particularly bonds. Their assessment reports help supervisory groups dole out danger to organizations or governments dependent on their capacity to pay what they owe.
Risk Analysts: Risk analysts decide how to oversee unpredictable market conditions and cutoff their organization’s potential for loss. They assist organizations with lessening hazard by keeping up an enhanced portfolio and consistently assessing the risk of their current investments.
Financial Analyst Job Description
A financial analyst is not only responsible for analyzing, but is also required to be up-to-date with all the changing marketing trends and stock market fluctuations. Among the many responsibilities of a financial analyst, these are some of the duties too:
- Provide analytical, forecasting, reporting, and project support to senior management
- Produce monthly reports, which include key metrics, financial results, and variance reporting
- Spearhead the annual and quarterly budgeting and forecasting processes
- Identify opportunities for performance improvement across the organization
- Maintain knowledge and keep abreast of new investment regulations or policies
- Develop models that help with decision-making
Financial Analyst Skills
A financial analyst needs to have a lot of skills to be able to conduct effective analysis for a company and make sure the math is correct when it comes to predicting. They must also have adequate knowledge about the micro and macroeconomics of the country which may in turn affect how businesses function.
A good financial analyst possesses the following skills:
- Interpersonal skills
- Ability to communicate
- Financial reporting
- Analytical ability
- Problem-solving skills
- Knowledge of IT software
- Management experience
Financial Analyst Salary
The average salary of a financial analyst by state is:
| State Name | Average Salary |
| Alaska | $82,900 |
| Alabama | $82,130 |
| Arkansas | $74,900 |
| Arizona | $74,200 |
| California | $95,680 |
| Colorado | $90,060 |
| Connecticut | $92,470 |
| District of Columbia | $91,390 |
| Delaware | $79,520 |
| Florida | $69,060 |
| Georgia | $75,230 |
| Hawaii | $75,824 |
| Iowa | $77,011 |
| Idaho | $75,280 |
| Illinois | $88,760 |
| Indiana | $76,729 |
| Kansas | $75,211 |
| Kentucky | $67,388 |
| Louisiana | $67,760 |
| Massachusetts | $87,060 |
| Maryland | $81,300 |
| Maine | $75,740 |
| Michigan | $78,490 |
| Minnesota | $85,940 |
| Missouri | $81,990 |
| Mississippi | $70,030 |
| Montana | $86,520 |
| North Carolina | $80,740 |
| North Dakota | $69,990 |
| Nebraska | $68,850 |
| New Hampshire | $81,590 |
| New Jersey | $94,070 |
| New Mexico | $79,830 |
| Nevada | $76,760 |
| New York | $107,160 |
| Ohio | $71,920 |
| Oklahoma | $62,600 |
| Oregon | $84,300 |
| Pennsylvania | $78,054 |
| Puerto Rico | $50,570 |
| Rhode Island | $78,820 |
| South Carolina | $68,260 |
| South Dakota | $69,240 |
| Tennessee | $69,130 |
| Texas | $83,060 |
| Utah | $72,060 |
| Virginia | $86,550 |
| Virgin Islands | $49,440 |
| Vermont | $74,560 |
| Washington | $80,300 |
| Wisconsin | $71,330 |
| West Virginia | $69,190 |
| Wyoming | $75,710 |
Note: Sample rates have been extracted online, courtesy of CareerExplorer.
How to become a Financial Analyst with no experience?
To become a financial analyst, there are a couple of educational and professional requirements. The first step is of course to earn a bachelor’s degree and get proper education, so if you’re enrolled in a recognized college, you’re one step closer to becoming a financial advisor!
It is recommended- but not necessary- to earn a bachelor’s degree in a relevant field that helps in your career as a financial analyst. A degree in Accounting and Finance, or Economics or even Business Studies is great; because they teach you all the theoretical aspects of the market and what to expect when you get in the practical world.
While you’re still at school and still studying, it would be a great opportunity to land an internship during summer break. Working at a financial advice firm or sole practitioner would give you hands-on experience about how to go about it, and what it is like to work under specialists and supervisors. You can take this opportunity to really learn about the profession; ask A LOT of questions!
Once your bachelor’s degree is complete and you also have some internship experience, you probably want to get on with your job hunt! For this, you need to document everything about your experience and qualifications in a resume, so make sure it is precise, relevant and impactful.
To become a specialist as a financial analyst, you obviously need some certificates and licensing to authenticate you as a genuine person. Some common certifications and licenses that financial advisors pursue are:
But if you have absolutely no experience, you can still become a financial analyst. For someone who is just starting, you must be top-notch at communication and use this skill to network into people related to the field. Having conversations with experts will not only streamline your views but will also give you knowledge about the market. Building connections is key to entering into the market and starting your career as a financial analyst.
Read a lot on current affairs and the stock market- you should have apt knowledge about every trend, every shift in the graphs and literally every account that is being managed in the stock market. If you can, start with a finance blog and maintain it too. Have guest bloggers contribute to your blog with their content and perspectives!
If you have no experience today, you must have some experience as you move on with the career. Enroll yourself into financial analyst training programs, and spend your time there learning the ins and outs of becoming a financial analyst. After that you can easily land internships at reputable firms and get hands-on experience in the field.
Conclusion
A financial analyst is someone who analyses the records of a company to help with their monetary goals. They are responsible for giving investment strategies to a company with the aim of reaching their long term goals, and must also have an interest and keen knowledge about the stock market.
A financial analyst does all the research on macro and microeconomic trends of the country that affect businesses and also gives their two cents on monetary potential of the company.
