Financial Analyst Responsibilities

Job Descriptions » Analyst » Responsibilities of a Financial Analyst

Finance is the one of the key departments of any business organization that is responsible for effective management of finances, which in turn will ensure better growth of any business. Financial analysts play a pivotal role in financial analysis, development of business, system integration, budgeting, and forecasting the future financial trends. The financial analyst responsibilities are complex in nature, and therefore, only those who are really interested in taking up finance as their career option will be able to shoulder it effectively.

Key Responsibilities of a Financial Analyst

Financial analysts help in determining the economic performance and financial health of any business organization. Their most essential job function is to provide and conduct a detailed analysis of the financial information, guide and direct the individuals and businesses to make wise decisions. Financial analyst responsibilities comprise analyzing the economic trends, reviewing the financial transactions, presenting the financial information in the form of graphs, spreadsheets, charts, etc., and forecasting the future trends to make better financial decisions. The below mentioned points will help in highlighting the key responsibilities of a financial analyst

To acquire the financial data from various departments, analyze the financial information and interpret it
To develop innovative and effective techniques and recommend the financial plans that will help in the development of the business
To monitor and reconcile the accounting and financial procedures
To develop methodologies to improve the financial processes and evaluate business proposals by conducting a proper research and analysis of the monetary impact it may have on the economic condition of the organization
To guide and train the subordinate staff members on the new policies and procedures and ensure that they are in compliance with the legal laws and organization's policies
To assemble and organize the financial information in the database and spreadsheets, evaluate the financial performance, and accordingly forecast the future expenses and trends that may occur in the financial field

In addition to these responsibilities,

He is responsible for providing alternative solutions to cost accounting issues and verifying the accuracy of financial records by closely monitoring it and identifying the accounting discrepancies.
While doing so, he ensures that it is in conformance with the legal rules and is in compliance with the business goals and objectives.
He may make suggestions to implement cost reduction methods that will help in improving the efficacy of the operational procedures.
He oversees the acquisition and merger activities related to the auditing and finance departments.
He may function as manager on specially assigned projects and may need to supervise some finance staff members.

Financial analysts are further classified into two categories viz. buy side and sell side analysts. Buy side analysts provide guidance and devise strategies regarding investments to the companies who have got huge potential for investment. For example, insurance companies, mutual funds, non profit organizations, etc. On the other hand, sell side analysts provide consultation services and advise the financial sales people to sell their financial products and services.

Essential Skills

A financial analyst should have an aptitude for math and be detail oriented with excellent interpersonal communication skills.
Since a financial analyst needs to maintain and update financial information, he needs to have a strong proficiency in computers, especially with Excel.
He should be able to enjoy working in a team as well as be able to work independently with minimal supervision.
Ability to handle multiple projects and deliver results even in pressure situations are some of the other pre requisite skills.
Excellent time management and organization skills would help in timely completion of the assigned projects.

Educational Background

To make an entry as a financial analyst, you should at least have a bachelor's degree in business with more emphasis on finance or accounting. A master's degree in business administration or management or a CPA qualification would definitely prove to be an advantage.

Work Hours

Financial analysts need to handle a wide range of duties and responsibilities and have a standard work schedule that requires him to work for thirty five to forty hours per week. It is a full time job and sometimes they may need to work overtime too.

Salary Details

The average salary for a financial analyst is in the range of $72,000 to $74,000. For entry level positions, the minimum salary that is being offered is $45,000, while for the experienced analysts, it can go up to $142,000. It also varies depending on the relevant work experience, skills, and educational background. The size and the type of organization they are employed in will also be the key determining factors.

Career Prospects

There is an increasing demand for financial analysts; however, there is a fierce competition in this sector. To get the right job, you should have relevant work experience and should be well versed with accounting principles.

Thus, to become a complete professional and ensure a rewarding career, you must be able to shoulder the financial analyst responsibilities efficiently and effectively.

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