Financial Analyst Job Description & Roles and Responsibilities (2024)

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.

This Story also Contains

  1. Job Description of a Financial Analyst
  2. What are the Job Roles and Responsibilities of a Financial Analyst?
  3. Career Progression of Financial Analysts
  4. Qualifications Required to Become a Financial Analyst
  5. What Are Some Of the Important Financial Analyst Skills?
  6. Top Recruiters of Financial Analysts
  7. Financial Analyst Salary
  8. Conclusion

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.

Also Read:

  • Top 10 Companies Hiring MBA in Finance Graduates
  • 15+ Paid Courses for Finance Graduates

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:

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 management specialist, 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 management specialist. 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.

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

  • 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

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 offer 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

EY

Rs. 5 Lakhs

Accenture

Rs. 6 Lakhs

Deloitte

Rs. 6.7 Lakhs

S&P Global

Rs. 8.1 Lakhs

JP Morgan

Rs. 10.9 Lakhs

Source: Glassdoor, AmbitionBox

Conclusion

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.

Financial Analyst Job Description & Roles and Responsibilities (2024)

FAQs

Financial Analyst Job Description & Roles and Responsibilities? ›

Typical job responsibilities might include assessing financial data, preparing written reports and giving presentations, studying business trends, appraising a business's financial statements, and potentially meeting with company management to determine how the firm is doing and to evaluate their leadership team.

What are the roles and responsibilities of a financial analyst? ›

A financial analyst is responsible for a wide range of activities including gathering data, organizing information, analyzing historical results, making forecasts and projections, making recommendations, and generating Excel models, presentations, and reports.

What is a financial analyst 2 description? ›

Monitors and coordinates third-party financial reviews, including the accumulation of data, financial modeling, reporting, and monitoring of responses. Performs or reviews financial analysis scenarios, such as interest-rate risk simulations using financial modeling software.

What is the job description of a financial analyst better team? ›

Identifying financial performance trends and financial risk, and making recommendations. Providing recommendations for improvement based on trends. Coordinating with other members of the finance team, such as a risk analyst when required to review financial information and forecasts. Providing financial models.

What is the daily work of a financial analyst? ›

In general, financial analysts analyze the financial statements of companies to determine good investments. They analyze stocks, bonds, and other financial instruments. Financial analysts help determine the value of mergers and acquisitions. They study economic data and the financial markets and recommend investments.

What exactly does a financial analyst do? ›

Financial analysts guide businesses and individuals in decisions about expending money to attain profit. They assess the performance of stocks, bonds, and other types of investments.

What is the key role of financial analysis? ›

Financial analysis allows you to identify the financial strengths and weaknesses of the organization and to make informed decisions about its future strategies. It is essential for investors, lenders, and creditors to assess the company's ability to pay back loans or to invest in the company.

What does a financial analyst do for dummies? ›

Financial analysts analyze an organization's past financial data to spot trends and assess risks, which helps them predict outcomes for business decisions, identify sale or purchase opportunities and make investment recommendations.

How do you describe financial analyst on a resume? ›

Detail-oriented, high-energy professional with strong planning, organizational, and leadership abilities seeking a position as a financial analyst with an international investment company to apply in-depth knowledge of accounting principles, data analysis, financial reporting, risk assessment, and forecasting.

What is the job description of a financial analyst expert? ›

A Financial Analyst forecasts future revenue and expenditures to help determine budgets for upcoming projects. A typical Financial Analyst job description should highlight researching and reporting on financial information, as well as monitoring financial movements within the market.

What are some common tasks performed by financial analysts? ›

Top 5 Tasks of a Financial Analyst
  • DEVELOP RELEVANT PERFORMANCE REPORTING OF BUSINESS AND KEY INITIATIVES. ...
  • LEARN, PREPARE AND MAINTAIN FINANCIAL MODELS AND TOOLS. ...
  • CONSTRUCT DOCUMENTS CRITICAL TO THE FINANCIAL PLANNING PROCESS. ...
  • CREATE DETAILED FINANCIAL ANALYSIS AND INFLUENCE INVESTMENT DECISIONS.
Feb 17, 2023

What is an analyst's job description? ›

An analyst gathers, interprets, and uses complex data to develop actionable steps that will improve processes and optimize results.

What skills are required for a financial analyst? ›

top 10 financial analyst Skills on Resumes with High Match Rate
  • Communication Skills.
  • Leadership.
  • Attention to Detail.
  • Interpersonal Skills.
  • Work Independently.
  • Collaborate.
  • Motivated.
  • Fast.

What are the most important responsibilities of a financial analyst? ›

A Financial Analyst's primary role is to analyze the past and present financial data of the organization and estimate future revenues and expenditures.

What does an analyst do on a daily basis? ›

Regardless of which industry they work in, data analysts can expect to spend their time developing systems for collecting data, seeking meaningful patterns and compiling their findings into reports that can help improve their company. Analysts can be involved in any part of the analysis process.

What is the highest paid financial analyst job? ›

Highest paying cities for Financial Analysts near United States
  • Washington, DC. $91,000 per year. 157 salaries reported.
  • New York, NY. $85,246 per year. 289 salaries reported.
  • Los Angeles, CA. $82,749 per year. 138 salaries reported.
  • Houston, TX. $81,692 per year. ...
  • Dallas, TX. $81,396 per year. ...
  • Show more nearby cities.

What skills do you need to be a financial analyst? ›

top 10 financial analyst Soft Skills
  • Communication Skills42%
  • Leadership29%
  • Written Communication13%
  • Interpersonal Skills13%
  • Work Independently12%
  • Collaborate11%
  • Motivated11%
  • Fast10%

What is the role of a financial analyst in a project? ›

Risk Assessment: Project finance analysts are trained to identify and assess various types of risks associated with a project. They can conduct thorough risk assessments, including market risks, regulatory risks, and financial risks, providing valuable insights to mitigate potential challenges.

Top Articles
Latest Posts
Article information

Author: Roderick King

Last Updated:

Views: 5521

Rating: 4 / 5 (51 voted)

Reviews: 82% of readers found this page helpful

Author information

Name: Roderick King

Birthday: 1997-10-09

Address: 3782 Madge Knoll, East Dudley, MA 63913

Phone: +2521695290067

Job: Customer Sales Coordinator

Hobby: Gunsmithing, Embroidery, Parkour, Kitesurfing, Rock climbing, Sand art, Beekeeping

Introduction: My name is Roderick King, I am a cute, splendid, excited, perfect, gentle, funny, vivacious person who loves writing and wants to share my knowledge and understanding with you.