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.
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
In addition to these responsibilities,
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.
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.
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.
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.
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.