A financial analyst is a common career path in the finance sector. This is mainly for the reason that the financial analysts can work in a wide array of industries and because this turf has some sweet benefits, including the likelihood of a high salary in the future.
If you’re a finance major, a financial analyst part is certainly worth considering. Even though you’re not currently majoring in the finance discipline, you might be captivated in discovery more about this path and deciding if it will be a perfect career path for you.
Role of a financial analyst
The key factor that symbolises a company’s development and existence is the degree of productivity attained. There is a close association between using financial assets and the profit generation for a business firm. Financial analysis is obligatory to decide the financial wellbeing and solidity of a company. It assists in knowing the current economic position and impending financial requirement.
Progress your career with Accountancy Age jobs
Here’s what a financial analyst might do day to day:
Now that you have understood the roles of a financial analyst, there is some skill set you need to have and also a level of qualification you must attain.
Qualifications and Skills
Are you an undergraduate with hopes of becoming a financial analyst? Then you must take several courses in business, economics, and accounting and of course mathematics. As a financial analyst, you should be helping an establishment select which stocks and shares to purchase. In other words, you have to be constantly looking for good investments and selecting which of your company’s portfolio of stocks to purchase or flog off.
Financial analysts are the seers who forecast and see developments in the economy and help clients make healthy investments. These experts are able to not only study information but to share it with the board. A career in financial analyses can be a fulfilling, profitable career, but by continuously improving a certain set of skills, you can attain even more success. Let’s see these skills set.
A financial analyst not only knows just where to find the best facts on investments but have the means to organise research and efficiently utilize it.
If it’s finding vital information about an establishment that is still in the shadows or analysing a customer’s profile to look for ways to efficiently invest their money, the financial analyst should be capable of doing that. They pay close attention to the fluctuations in percentages or other information that will go a long way toward success.
This is everything the job requires. It the most important thing the financial analyst should be able to do is to analyse data. That comprises of analysing the research they’ve done, collecting information assembled and then formulating a well-organized tactic for a clients’ difficult financial profiles.
Obviously, being able to perform simple mathematics like addition, subtraction and multiplication do not just cut it. You should be able to perform difficult mathematical algorithms that will help you study the value of investments and help your clients get the most from their investment.
When a new break comes up, an expert financial analyst should be able to combine the background data he has gotten with the new data and make quick decisions that can help the clients get an edge over other investors who are competing for the asset.
Approximately, every profession in this modern world needs at least the basic computer skills, and a financial analyst is no exception. A financial Analysts should be capable of operating Microsoft Office applications such as word, PowerPoint and excel. They should be able to be able to navigate through internal company databases.
While the job is mostly about the numbers, the financial analyst is also a service provider. This means that they will have to work with actual clients. An expert must have a good communication skill and also a good customer service skill. A good speaking skill, listening and writing skills are very important for a FINANCIAL ANALYST. These analysts will not be able to pass the information a client needs to have so as to make healthy financial decisions.
A salesmanship skill is very important to the financial analyst to get a client to sign on. A skill in the art of persuasion is also vital. Some of these are associated with communicating. As well as being able to speak fluently and present information clearly.
As you move to the upper realm of your development, the table will be turned and you will have to mentor a young analyst. This capability to reach out and guarantee the success of those young analysts just setting out.
Search for current Financial Analyst opportunities
Work Environment
Financial analysts have to bear a burden of the financial activities of an investment. So, subsequently, this is a stressful job that needs a quick and sound decision maker. A financial analyst should work in a normal corporate office which should be comfortable and the temperature controlled. Mostly, they spend sizable time on the phone calling other experts and prospective clients. Some financial analyst often travels a lot to meet with potential clients and investment bankers, other executives and professionals in the finance field. Many financial analysts live in major cities which are close to headquarters and also find jobs in great abundance. While some freelance financial analyst works as a digital nomad from various islands and areas with high tourist attractions like Indonesia.
Schedule
It is possible for a financial analyst to work for several hours a day. Approximately 45 hours a week (5 working days).
Education
A financial analyst education requirements is at least a bachelor’s degree (in finance related courses like economics and statistics as well as mathematics). Financial Analysts who want to really have an edge over other analyst and enjoy greater opportunities for jobs, as well as salaries, should pursue a master’s degree in finance or MBA. Furthermore, many businesses only require the services of financial analysts who are decorated with certifications from the Chartered Financial Analyst Institute.
Experience
It’s common for a financial analyst to be gainfully employed just as they graduate from an MBA or CFA program. However, you don’t need any skill outside of your education. As you gain power in the finance industry, you will surely have the possibility of an increased salary, and you will get the break to move up the corporate food chain.
Salary expectations
The average salary of the financial analyst has fluctuated over the years. According to the BLS, the average financial analyst earns an annual salary of USD 80,310. But the average salary varies on the specific job the financial analyst is carrying out. What I mean is that those, as well as commodities, have an annual salary of USD 90,000+ while the salary earns by an analyst in insurance is around USD 70,000+.
Job outlook
As a financial analyst, your career will experience an early growth than normal, increasing by 12% between 2014 and 2024. The difficulty in the industry coupled with the high request for financial analyst will propel this growth as establishments and investment firms have generated new spots for these experts and also, increase their finance sectors. In all, it is estimated that the United States market will provide about 32,000 jobs for analysts over the next decade. Currently, the job availability is about 300,000 and rising significantly every day.
Career route
It all depends on how bad you want to be successful. Some financial analyst will continue to work the same kind of job throughout their career. Others rise to the level of the C-suite, and even the level of the chief financial officer (CFO). A financial analyst can find a career in consulting which increases their income opportunities and let them work for themselves rather than being linked to a client.