Individuals in financial analyst jobs provide a company or corporation with interpretations about auditing processes, budgets, business performance, investments, and other financial dealings. Part of the role involves recommending measures on reducing non-relevant business expenditures and other cost saving strategies. Analysts guide executives in making wise financial and business decisions and help to maintain the success of a company. The direction a company or corporation takes operations is often based upon the determination of a skilled financial analyst. This is an integral role in any organisation that provides accurate forecasts on profitability, solvency, liquidity, and stability.
The information provided by analysts allows people in management to make informed decisions about how to conduct business. Financial analysts are expected to be able to research, collate, and analyse accounting data and balance sheets. Proper analysis must be made in order to give reliable assessments of the economic performance of an organisation. Analysts must also be able to write up the data in layman's terms and present to senior managers or clients when necessary.
Disciplines involved in a financial analyst job.
A career as a financial analyst covers many disciplines, including accountancy, maths, and economics. This is a role that has a scope for high earnings and other perks and bonuses. Business, sector, and industry recommendations are made by analysts based upon their research of company fundamentals as well as macroeconomic and microeconomic conditions. Some of the practical decisions that are made involve actions like whether to buy or sell stock based upon predicted and current overall strength. Financial analysts must stay vigilant in order to stay on top of current developments in their specialist fields. These individuals will be involved in making the all important recommendations and conclusions based upon the preparation of financial models that will predict future economic conditions.
Sometimes reports also need compiling for use by other investment companies to make their decisions. The information being provided includes market information to help the other companies make recommendations. In an investment bank the role of a financial analyst will be to forecast and make recommendations to senior partners on whether or not to merge, buy another company, or to invest in a start-up company.
Qualifications for this role as an undergraduate will require taking courses in business, accounting, economics, and mathematics. Analysts will have to crunch numbers using statistics, but other subjects in computer sciences, biology, physics, and engineering will show an ability to make use of data. These subjects are crucial for a junior analyst, while senior analysts are usually hired right out of business school. Some of the tasks that individuals in financial analyst jobs perform include cost reduction, accounting, reconciliations, advising clients, assisting auditors, networking with industry professionals, reviewing budgets, checking the integrity of data, forecasting, helping the business in its investments, and analysing real estate investment opportunities, stocks, bonds, and other financial products.
Desired skills.
Skills employers look for are in computer technology, using financial software, applying technical knowledge, using commercial skills, networking, negotiating, problem-solving, flexibility, organisation, meeting deadlines, ability to focus and be persistent, understanding complex information, and following business protocols.
Some of the minimum qualifications for this role are a BSc degree in accounting combined with prior experience. The candidates who are given preference by employers are those with MSc level degrees or those who are chartered ACCA or CMA accountants. Employers also look for candidates with the industry's CFA and CIIA certification. Investment banks, insurance companies, and other money management institutions use financial analysts. Reputation and the level of proficiency of analysts usually dictate, in part, the fees in the private sector.
A beginning wage in investment banking or at an asset management organisation may be about £22,000 and can range up to £60,000 for individuals with over four years of significant experience. Financial analysts may also work on a consultant basis making a daily rate of £300 and up. While the role of an analyst may be challenging and extremely competitive, the rewards are high and the career opportunities are ample.
Career progression in this field can begin with the position of Financial Analyst and progress to that of Finance Manager, Financial Controller role, Management Accountant, or Business Analyst, Finance / Banking. From this middle level the progression can continue to that of Finance Director, Finance & Administration Manager, Director of Finance & Administration, Chief Financial Officer (CFO), Commercial Finance Manager, Senior Finance Manager, and Project Manager, Banking.
