A financial analyst is a professional who guides and advises businesses regarding investment in stocks and bonds. They are the financial advocates of many organizations.
Hence, some of their key roles include writing financial reports, analyzing the return on investment in stocks, and providing overall financial strategy for different companies.
If pursuing a career in financial analytics or accounting analytics, this article will help you gain more insight into what a financial analyst does, and the duties of a financial analyst. Also, as we make progress, we will discuss a bit more about the training and skill requirements.
What is a Financial Analyst?
A Financial analyst is an expert who oversees the financial analysis and planning of a company and ensures its investments are made with reputable brands. A financial analyst provides overall financial advice for investment strategy within an organization. Other primary duties include conducting and collecting industrial research data, preparing financial reports, and making predictions on return on investment for the company.
Financial Analyst Roles and Responsibilities
Financial analysts deal with data, they use this data o to research for trends and updates that affect the products or services of the clients they serve. This is an important duty for a financial analyst.
More so, they use their analytical skills and financial knowledge to assess financial performance, identify risks and opportunities, and make recommendations to management.
Therefore, financial analysts are responsible for a range of tasks that are essential to the financial health of a company or organization. Below are some of the key responsibilities of a financial analyst.
They collect and analyze financial data from different sources, including financial statements, market research reports, and industry publications used to track data to track trends, identify patterns, and assess the financial health of a company or organization.
They develop financial models to forecast future financial performance. These models are used to assess the impact of different business decisions, such as new product launches or mergers and acquisitions.
Financial analysts evaluate investment opportunities to identify those that are most likely to be profitable.
They examine the financial strength of an organization by critically evaluating its financial values.
The financial analyst helps organizations Identify financial risks by assessing credit, market, and operational risks to protect the organization’s financial health.
What Does A Financial Analyst Do?
Financial analysts study the economic conditions of the stock and bonds market, including the entire investment trend. They use the data collected to create an informed investment strategy used to guide the investment plan of an organization.
More so, financial analysts organize data from trends and research into easily comprehensible reports in various forms. These reports are detailed with a few containing key metrics like equity and earnings per share for the stock, yearly growth accumulation, and percentage of return on investment. Oftentimes, they conduct cross-sectional industries and companies to provide even a comprehensive financial report.
Financial Analyst Education and Training Requirement
Some employers include the need for specific bachelor’s degree requirements in specific fields when detailing the job description for a financial analyst, some others do not. However, the education and training requirements for financial analysts often include a combination of formal education, relevant certifications, and practical experience.
Hence, regarding educational qualification, most financial analyst positions require at least a bachelor’s degree in finance, accounting, economics, business administration, mathematics, or other fields. However, some employers may prefer candidates with a master’s degree in finance or a Master of Business Administration (MBA), especially for more advanced or specialized roles.
In addition to earning a bachelor’s or master’s degree, It’s also important to get licensed as a Financial analyst. To get a license as a financial analyst, you must register officially with the Financial Industry Regulatory Authority (FINRA).
Additionally, to get better chances for promotions and higher earning capacities, you need to get Certifications.
The following are some most recognized certifications:
Chartered Financial Analyst (CFA): Although this is not mandatory, it is a valid certification that emphasizes your expertise in the profession. The CFA certification is given to qualified professionals with a bachelor’s degree in an approved field and approximately four years of experience. Before you are issued the certificate, you must have concluded four examples.
Other Certifications: Depending on your area of expertise, certifications like Certified Public Accountant (CPA), Certified Management Accountant (CMA), or Financial Risk Manager (FRM) can be beneficial for you.
Duties of a Financial Analyst Salary (Expectation )
According to Glassdoor Salaries, “The estimated total pay for a Financial Analyst is NGN 450,000 per month in the Nigeria area, with an average salary of NGN 200,000 per month.” However, a financial analyst in the US and other developed nations earns higher depending on organization size and experience level.
According to salary.com, “the base salary for Financial Analyst ranges from $59,637 to $72,410 with the average base salary of $65,476.”
Conclusion on Duties of Financial Analyst
Financial analysts are highly skilled professionals who work with data to create real-time financial solutions for organizations looking to invest or build their financial strength. As a financial analyst, you can work in an investment bank, a Commercial bank, or an Insurance Company among others. However, to work as an official financial analyst, you need to earn a bachelor’s degree or a professional certification