The position of a financial analyst is one of the most profitable career options in the field of general finance. An individual who possesses the ability of meeting new expectations of his or her employers within the finance arena is sure to find more growth opportunities and employment in this field. A financial analyst is also called a business analyst and he or she is a professional involved in analyzing the financial development of an organization. One of the most important functions of a financial analyst is evaluating the financial risk of a company and drafting the financial forecasts. Companies can always develop cash flows, maintain budgets, prepare debt strategies and make informed decisions by taking the services of financial analysts.
The Job Duties of a Financial Analyst
There are some specific job duties that the financial analysts working for an organization need to carry out and they are as follows:
Evaluating the financial risk of a company and preparing financial reports describing the financial forecasts, capital management plans and financing options.
Helping in the preparation of company budget.
Recommending solutions for improving and managing financial status of a company by identifying and monitoring financial trends.
Maintaining the database by gathering, verifying and backing up essential data.
Maintaining the confidentiality of financial information.Developing automated accounting forms with the objective of productivity.Working with the company officials for gaining a better understanding of the management and the prospects of the company.
Identifying the current financial status of an organization by evaluating and comparing the actual results with the strategies.
Establishing different procedures and policies in relation to cost.
Industries Demanding the Services of Financial Analysts
There are a number of industries that demand the services of a financial analyst for handling finance related problems. These industries are:
- Defense and Aerospace Industries
- Auditing and Accounting Services Industry
- Pharmaceuticals and Biotechnology Industry
- Banking Industry
- Computer Hardware and Software Industry
- Business Services Industry
- Consumer Packaged Items Industry
- Construction Industry
- Semiconductor, Components and Electricity Industry
- Education Industry
- Engineering Services Industry
- Utility and Energy Industry
- Financial Services Industry
Educational Qualifications of a Financial Analyst
The individuals who like to serve as financial analysts must possess undergraduate degree in management, finance, statistics, administration and economics. Possessing a graduate degree along with appropriate certifications can enhance the job prospects of an applicant.
Important Skills Needed
There are some important skills that need to be possessed by individuals willing to serve as financial analysts and they are as follows:
- Detailed understanding of the business of the company.
- Complete understanding of different companies.
- Good communication skills which should include written and verbal skills.
- Top quality organizational and analytical skills.
- Skills in project management.
- Ability of creating finance models.
- Complete understanding of quantitative and financial concepts.
- Ability of working independently and taking sound decisions.
- Ability of managing different projects and tasks.
- Proper knowledge of latest technologies.