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Financial Analyst Job Description & Roles and Responsibilities

Financial Analyst Job Description & Roles and Responsibilities

Edited By Team Careers360 | Updated on May 17, 2024 12:40 PM IST

A financial analyst analyses financial data of organisations and evaluates their financial performance. He or she analyses data like balance sheets, income statements, and cash flow statements to understand the finances of the company. This helps in evaluating if the company is profitable or not.

A financial analyst uses several quantitative and qualitative methods to interpret data, assess risks, and forecast future outcomes of the organisation. An analyst may need to prepare reports, presentations, and models to convey their findings to the stakeholders and clients. A financial analyst helps organisations and even individuals to achieve their financial goals by guiding their investment decisions.

Job Description of a Financial Analyst

The job of a financial analyst includes several tasks like analysing financial data, preparing reports, and guiding financial and investment decisions of the organisation. The financial analyst understands market trends and helps to improve the financial position of the organisation. Several financial modelling tools are often used to evaluate wide investment options and opportunities.

A financial analyst prepares financial models and carefully oversees all the financial transactions taking place in the organisation. He or she also uses information from other departments of the company for data interpretation. He or she should also keep up with the latest developments and financial news of the state to provide appropriate insights. In the next section we have mentioned some of the important financial analyst duties that one has to perform.

What are the Job Roles and Responsibilities of a Financial Analyst?

Financial analyst’s roles and responsibilities range from analysing financial data to studying market trends, interpreting future performance, and helping the organisation in making informed decisions. Other responsibilities of a financial analyst involve conducting research and creating reports. He or she might also work on portfolio management of an organisation or individuals. Here are some important roles discussed:

Gathering Financial Data: Financial analysts’ work is to gather data like historical financial records and data from general accounts of the company. Such information is generally gathered from a variety of sources including the company’s database, government websites, or third-party providers.

Financial Modelling: Financial analysts do financial modelling by utilising various methods like mathematical techniques, software tools, and statistical analysis. They interpret various scenarios, budgeting, investment opportunities, and strategic planning to help organisations optimise their financial strategies and outcomes. They create complex models to forecast future scenarios.

Market Research: Financial analysts conduct market research to understand various factors of the business like industry trends, competitor performance, and economic conditions of the state. The data derived from these researches is further used to determine investment plans, risk management, and even strategic planning. This helps the businesses to explore new opportunities.

Investment Analysis: Financial analysts are responsible for analysing various investment options for the organisation. The options may include instruments like bonds and stocks. Financial analysts analyses risks, rate of returns, interest rates and market trends of the investments. They also use financial data like cash flow statements, bank statements, and economic trends to for analysis to ensure minimum risk or loss.

Performance Evaluation: Financial analyst evaluates the organisation's performance by analysing data like financial statements, customer reviews, and other performance indicators. This helps in finding out areas of improvement. Performance analysis helps in determining the profitability of the organisation. They provide insights to the management through detailed reports, aiding in the decision-making process and strategic planning.

Related: Online Financial Analytics Courses & Certifications

Career Progression of Financial Analysts

Financial analysts primarily start their careers as a junior financial analyst who conducts analysis and research under the supervision of seniors. They further advance to get positions like Senior Financial Analyst and handle more complex projects and data sets. Further progressions in the career of a financial analyst include specialisations such as investment bankers, risk managers, and portfolio managers.

Entry-Level Financial Analyst: Entry-level analysts are responsible for performing tasks like collecting data, basic financial modelling, and financial analysis. Entry-level analysts also assist in the investment decision-making activities of the organisation. They are trained and supervised by senior-level analysts who teaches all the required skills. Freshly graduated candidates are mostly preferred for the role of an entry-level analyst.

Senior Financial Analyst: After years of experience, an analyst may be promoted to the position of Senior analyst. The responsibilities include conducting in-depth research and analysis, leading projects, and supervising junior analysts. Senior analysts may also provide insights and recommendations to senior authorities and clients as well.

Specialised Roles: Financial analysts may turn into specialised personnel who take care of a particular aspect of financial planning such as investment bankers, or risk managers. Analysts may prefer to opt for various specialised or certified courses like CFA, CPA or MBA.

Executive Leadership: Analysts with dedicated performance generally rise to executive leadership positions like Chief Financial Officer (CFO) or Chief Investment Officer (CFO). The work role of these executives includes setting organisational plans, and financial strategies and guiding organisation decisions. They are the face of an organisation for the stakeholders.

Also check - How to Become a Financial Analyst

Qualifications Required to Become a Financial Analyst

To become a Finance Analyst, candidates must pass a 10+2 level of education from a recognised board in India. Then opt for a bachelor's degree in a related field and then opt for a master’s degree. Below are some of the Bachelors degrees. Candidates can pursue a career as a financial analyst.

Bachelor’s Degree Programmes

What Are Some Of the Important Financial Analyst Skills?

Financial analysts require a diverse set of skills to excel in the field of finance. These skills should be a mix of technical skills like financial modelling, analytical skills, and forecasting and soft skills like understanding the financial market and good communication skills to convey their findings most effectively to the stakeholders. Here are some of the major Financial Analyst skills:

  • Data Analytics
  • Financial Modelling
  • Critical Thinking
  • Problem-solving
  • Communication skills
  • Time Management

Top Recruiters of Financial Analysts

Recruiters for financial analysts seek candidates with proficient analytical skills, financial acumen and a good understanding of industry trends. Candidates presenting critical thinking and problem-solving skills are always on edge in the eyes of recruiters. Candidates holding certified courses such as CFA or CPA also surpass competitors. Here are some of the top recruiters of financial analysts in India:

  • Accenture
  • JP Morgan
  • EY
  • Delloite
  • S&P Global

Financial Analyst Salary

A financial analyst is offered a decent amount of salary based on factors such as experience, industry, skills, and location. A financial analyst in India earns an annual salary ranging from Rs. 2 Lakhs to Rs. 12 Lakhs. Big players of the industry generally offers higher salaries. Here is a list of salaries provided by some of the top recruiters that offer a good financial analyst salary.

Popular Companies
Average Salary


Rs. 5 Lakhs


Rs. 6 Lakhs


Rs. 6.7 Lakhs

S&P Global

Rs. 8.1 Lakhs

JP Morgan

Rs. 10.9 Lakhs

Source: Glassdoor, AmbitionBox


Financial Analysts play an essential role in the business world. They provide valuable insights and financial guidance to organisations. They help in making complex decisions and identifying risks through their excellent analytical skills, financial modelling and market research. They contribute to the success of organisations through their expertise and ensure that the best financial decisions are made.

Frequently Asked Question (FAQs)

1. Do financial analysts need to do CFA?

No, financial analysts do not need a certification of CFA as an essential qualification but it may prove to be beneficial to succeed.

2. Do financial analysts have internships?

Yes, financial analyst are offered internship opportunities to learn and excel their skills in the practical corporate world.

3. Is financial analysis a remote job?

The job of a financial analyst can be done from office or it can be a remote job based on the responsibilities and work assignments of the financial analyst.

4. Are there different types of financial analysts?

Yes, there are many types of financial analysts in the industry like risk analyst or portfolio analyst.

5. Can financial analysts have a government job?

Yes, the career as a financial analyst offers government job after completing certified courses like CMA, CFA, or CFP.


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