The Role of A Financial Analyst

When it comes to big decisions in business, finance tends to be the major focal point. The person who is responsible for setting realistic financial forecasts, based on prudent business decisions, whilst working closely with clients and colleagues is the financial analyst.

The role of a financial analyst varies greatly, and this depends on the size of the company they’re working for or with. For large companies such as the Fortune 500, chances are pretty high that the financial analyst will be involved with strategic analysis and opportunities for expansion. This is very different to a smaller business where the financial analyst would be involved with the company accounts as well as strategic analysis all be it on a smaller scale.

Setting financial budgets based on the company’s long term and short term goals, would form the primary role of the financial analyst, and they would be required to offer their advice on key decision making and any financial implications which might arise prior to those decisions being implemented.

All the plans, advice and practices will be scrutinised to ensure they are inline with financial regulations and legislation which the analyst will be expected to keep up to date with as changes are made.

Like a financial advisor is entrusted with wealth management for their clients, a financial analyst must have the competency to monitor and interpret cash flow, as well as being able to suitably predict possible future trends that may have an adverse impact on key business decisions.

They will also be expected to review current processes and implement changes where needed so as to effectively streamline these processes, creating insight and adding value to the company. This involves having an acute understanding of their competition in the market place so as to create competitive advantages, which will allow their own business to forge ahead.

To be a great financial analyst, developing excellent communication skills will be critical to you role and success, and you’ll be expected to deal with statutory organisations, bankers, lawyers as well as auditors to making sure the appropriate monitoring is being executed.

Individually as a financial analyst, your personal skills play an important role as well, and therefore being results driven is a major asset. Ensuring deadlines are met, being proactive, managing time effectively, and above all handling pressure and staying calm in stressful situations will all serve you to well as you drive and implement change to the organisation from a top down financial perspective.

In terms of industry and professional opportunities, a financial analyst can expect to find gainful employment in a myriad of sectors, including, Media, Telecommunication, Professional Services, Advertising, Consumer Products, Business Services, Public Companies, Non Profit and Pharmaceutical.