Financial Analyst Job Description & Roles and Responsibilities

Who Is A Financial Analyst?

A financial analyst is a professional who uses several quantitative and qualitative methods to interpret data, assess risks, and forecast future outcomes of the organisation. These professionals also work to prepare reports, presentations, and models to convey their findings to the stakeholders and clients. Financial analysts help organisations and even individuals to achieve their financial goals by guiding their investment decisions.

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.

Key Roles and Responsibilities of Financial Analyst

The roles and responsibilities of financial analyst go beyond just working with numbers. It includes several tasks like analysing financial data, preparing reports, and guiding financial and investment decisions of the organisation. By understanding financial trends and market conditions, analysts help improve the financial position of the organisation. Several financial modelling tools are often used to evaluate wide investment options and opportunities. He or she might also work on portfolio management of an organisation or individuals. Here are some important roles discussed:

• Gathering Financial Data: Collects and verifies financial records from a company's database, government websites, or third-party providers.

• Financial Modelling: Build models using statistical tools to forecast scenarios, budgets and investment outcomes.

• Market Research: Conducts market research on industry trends, competitor performance, and economic conditions of the state to determine investment plans, risk management, and even strategic planning. This helps the businesses to explore new opportunities.

• Investment Analysis: Evaluates options like bonds and stocks, analysing risks, rate of returns, interest rates and market trends of the investments.

• Performance Evaluation: Assess financial statements and KPIs to make improvements.

Career Progression of Financial Analysts

Financial analysts primarily start their careers as a junior financial analyst who focuses on data collection, basic modelling, 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 management specialists, and portfolio managers.

1. Entry-Level / Junior Analyst:

At the entry-level, analysts focus on tasks like collecting and organising data, basic financial modelling, and assisting with financial analysis. These professionals also assist in the investment decision-making activities of the organisation and are trained and supervised by senior-level analysts who teach them essential technical skills. These roles are mainly suited for freshly graduated candidates.

2. Senior Financial Analyst:

With several years of experience, an analyst can advance into Senior analyst roles where they will be managing complex research and analysis, leading projects, and supervising junior analysts. Senior analysts may also provide insights and recommendations to senior authorities and clients.

3. Specialised Roles:

Financial analysts may branch into investment banking, risk management, portfolio management or equity research. Analysts may prefer to opt for various specialised or certified financial analyst courses like CFA, CPA or MBA.

4. Executive Leadership:

With experience, analysts can rise to executive leadership positions like Chief Financial Officer (CFO) or Chief Investment Officer (CFO). These roles focus on organisational strategy and engaging with stakeholders.

Qualifications Required to Be a Financial Analyst

Candidates ambitious about becoming financial analysts can significantly benefit from financial analyst courses. To become a Finance Analyst, candidates typically need:

Education:

Candidates must pass a 10+2 education from a recognised board, followed by a bachelor's degree in a relevant field such as Finance, Accounting, Economics or Business. Pursuing a master’s degree, for example, an MBA, will further boost the professional growth of an analyst. Below are some of the Bachelor's degrees aspirants can pursue to build a career as a financial analyst.

Bachelor’s Degree Programmes

• BBA in Finance
• B.Com.Hons
• B.Com
• B.A in Economics
• BBA in Accounting
• B.Com. in Accounts and Finance
• B.Sc Computer Science

Certifications:

Professional credentials like CFA(Chartered Financial Analyst), CPA (Certified Public Accountant), FRM (Financial Risk Manager), or CMA (Certified Management Accountant) can be beneficial to improve career prospects.

What Skills Do You Need To Be A Financial Analyst?

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 and Financial Modelling

• Critical Thinking and Problem-solving

• Communication Skills and Time Management

Top Recruiters of Financial Analysts in India

Recruiters for financial analysts seek candidates with proficient analytical skills, financial acumen and a good understanding of industry trends. Here are some of the top recruiters of financial analysts in India:

• Accenture

• JP Morgan

• EY

• Delloite

• S&P Global

Financial Analyst Salary in India

A financial analyst is offered a decent amount of salary based on factors such as experience, industry, skills, and location. On average, a financial analyst in India with 1 to 7 years of experience earns between Rs. 2.2 Lakhs - 14 Lakhs per year.

Below is a list of Financial Analyst salary offered by some of the top recruiters known for providing attractive pay to financial analysts.

(Source: AmbitionBox)

Conclusion

Financial Analysts play an essential role in the business world. From providing valuable insights to financial guidance to organisations, a financial analyst's responsibilities include making complex decisions and identifying risks through their excellent analytical skills, financial modelling and market research. Whether you are working in the corporate sector, investment banking or portfolio management, a financial analyst role in a company contributes to the success of organisations through their expertise and ensuring that the best financial decisions are made.