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Job Description of Financial Analyst | Everything To Know4 min read

January 9, 2020 3 min read
financial analyst job description


Job Description of Financial Analyst | Everything To Know4 min read

Read­ing Time: 3 min­utes

A Finan­cial Ana­lyst plays a cru­cial role in the day to day func­tion­ing of a com­pa­ny. The job descrip­tion of a finan­cial ana­lyst has var­i­ous fac­tors into account. Like exam­in­ing the finan­cial data of an orga­ni­za­tion to help them make busi­ness deci­sions. These fac­tors include mar­ket trends, past trans­ac­tions of sim­i­lar nature as well as the com­pa­ny bud­get.

More specif­i­cal­ly, Finan­cial Ana­lysts make busi­ness pre­dic­tions and rec­om­mend a plan of action based on the com­pa­ny’s per­for­mance. In order to make eco­nom­ic pre­dic­tions, a Finan­cial Ana­lyst needs to be up to date about the devel­op­ments in their field. In sim­ple terms, a Finan­cial Ana­lyst helps the deci­sion mak­ers of a com­pa­ny with the nec­es­sary infor­ma­tion to increase their rev­enue. Here we elab­o­rate on the job descrip­tion of a finan­cial ana­lyst.

Role And Responsibilities Of a Financial Analyst

The Finan­cial Ana­lysts work is cru­cial for the finan­cial plan­ning and deci­sion mak­ing of a com­pa­ny. They keep track of a com­pa­ny’s finan­cial per­for­mance and plan and per­for­mance in the dynam­ic busi­ness envi­ron­ment. This, there­fore, helps in cre­at­ing fore­casts and find­ing out dis­crep­an­cies between the fore­cast and actu­al per­for­mance. More­over, a Finan­cial Ana­lysts job respon­si­bil­i­ties include:

  • Con­duct finan­cial fore­cast­ing and met­rics track­ing.
  • Deter­mine the cost of oper­a­tions.
  • Iden­ti­fy the com­pa­ny’s finan­cial sta­tus by com­par­ing pre­dic­tions with actu­al results.
  • Main­tain a data­base and con­stant­ly update it.
  • Work close­ly with the accounts team for detailed finan­cial report­ing.
  • Per­form mar­ket research.
  • Pro­fi­cien­cy in Microsoft Excel.
  • Strong Ana­lyt­i­cal skills and prob­lem solv­ing skills.
  • Ana­lyze the com­pa­ny’s niche in the indus­try and then eval­u­ate the per­for­mance of the com­pa­ny.
  • Work on the vision of the com­pa­ny after tak­ing into account the finan­cial his­to­ry of the com­pa­ny.
  • Spot lucra­tive invest­ment oppor­tu­ni­ties and nev­er miss an oppor­tu­ni­ty.

Qualifications And Skill Set

A Finan­cial Ana­lyst needs to hold at least a bach­e­lor’s degree in a finance-relat­ed major, like account­ing, eco­nom­ics or sta­tis­tics. For greater oppor­tu­ni­ties, an MBA in finance or any oth­er Mas­ter’s degree in finance is rec­om­mend­ed.

For the role of a finan­cial ana­lyst, there is no min­i­mum num­ber of work expe­ri­ence. Pro­vid­ed you have a Mas­ters in Finance. But some com­pa­nies might take an employ­ee who is expe­ri­enced in the finan­cial sec­tor over a fresh­er. Apart from these qual­i­fi­ca­tions, a Finan­cial Ana­lyst needs to pos­sess the fol­low­ing skills:

  • Strong data analy­sis skills and the abil­i­ty to gath­er data from mul­ti­ple sources.
  • High pro­fi­cien­cy in set­ting and improv­ing finan­cial mod­el­ing tech­niques.
  • Excel­lent pre­sen­ta­tion and com­mu­ni­ca­tion skills.
  • Exten­sive knowl­edge of cor­po­rate finance and infor­ma­tion analy­sis.
  • Strate­gic think­ing and smart deci­sion-mak­ing skills.
  • High­ly detail-ori­ent­ed.
  • Be com­fort­able in deal­ing with ambi­gu­i­ty.
  • Excel­lent ana­lyt­i­cal as well as quan­ti­ta­tive com­pe­ten­cy.
  • Thor­ough knowl­edge of excel for­mu­las and func­tions.

Financial Analyst Job Description: Career Scope

A Finan­cial Ana­lyst is one of the most pop­u­lar career paths in finance. This is main­ly because ana­lyt­ics is in demand in every indus­try which expands a Finan­cial Ana­lyst’s career scope. Besides, this field also has excep­tion­al perks like great earn­ing poten­tial.

And since a Finan­cial Ana­lyst’s pri­ma­ry skill is to assist peo­ple with their invest­ment deci­sions, they can also work as free­lancers. They can also set up their own cus­tomer base or even in invest­ment bank­ing. The career path or choic­es avail­able for a Finan­cial Ana­lyst look some­thing like this:

Senior Analyst:

  • With more than three years of expe­ri­ence as a junior Finan­cial Ana­lyst, the next step is a Senior Ana­lyst. There’s lit­tle dif­fer­ences in the duties and respon­si­bil­i­ties of a Junior and a Senior Ana­lyst. The flow of their work­days is quite sim­i­lar.

Portfolio Manager:

  • Port­fo­lio Man­agers are finance pro­fes­sion­als who deal in invest­ment port­fo­lios. They meet reg­u­lar­ly with ana­lysts to dis­cuss indi­ca­tions of mar­ket devel­op­ments and cur­rent trends in the finan­cial sec­tor. Addi­tion­al­ly, they do exten­sive research to make effi­cient invest­ment deci­sions regard­ing a com­pa­ny’s funds.

Chief Financial Officer:

  • A Chief Finan­cial Offi­cer is the senior-most exec­u­tive. They are respon­si­ble for man­ag­ing and han­dling the finan­cial actions of a com­pa­ny. CFOs are the top-lev­el finan­cial con­trollers who man­age every­thing asso­ci­at­ed with finan­cial plan­ning, tax­a­tion, and cash flow. More­over, a CFO is the third-high­est posi­tion in a com­pa­ny’s hier­ar­chy.

Budget Analyst:

  • Famous­ly known as accoun­tants or con­trollers, bud­get ana­lysts are respon­si­ble for exam­in­ing the oper­at­ing cost of a com­pa­ny. And there­by prepar­ing bud­get reports for the same.

Investment Analyst:

  • Invest­ment Ana­lysts are also known as Port­fo­lio Man­agers. They eval­u­ate as well as draw invest­ment strate­gies for the com­pa­ny after ana­lyz­ing the invest­ment data. The respon­si­bil­i­ty is to make the com­pa­ny aware of the var­i­ous pros and cons of each invest­ment plan that they draw.


Since strate­gic finan­cial plan­ning has become a neces­si­ty for a busi­ness, the demand for Finan­cial Ana­lysts is cru­cial in every sec­tor. How­ev­er, the first few years of your career path may require you to work in tough con­di­tions. But you need to stick around.

There­fore, with expe­ri­ence in the field, you shall be look­ing at a great career path ahead of you. Typ­i­cal­ly, the salary brack­et for a finan­cial ana­lyst in India is 4–4.5 LPA. It comes to an aver­age of 33–37k per month.

Washija is a content specialist at Receptix. She has an MBA in Tourism and a passion for creating web content. She is an avid reader, a traveler, and a versatile writer.