Financial Analyst Job Description

Financial Analyst Job Description Guide

The financial analyst job description below gives a typical example of all the skills, education, and experience required to be hired for an analyst job at a bankBanking (Sell Side) CareersThe banks, also known as Dealers or collectively as the Sell Side, offer a wide range of roles like investment banking, equity research, sales & trading, institutionBuy-SideInstitutional asset managers, known as the Buy Side offer a wide range of jobs including private equity, portfolio management, research. Learn about the job, or corporationCorporate InformationLegal corporate information about Corporate Finance Institute (CFI). This page contains important legal information about CFI including registered address, tax number, business number, certificate of incorporation, company name, trademarks, legal counsel and accountant.. Read this job description closely to see if you have what it takes to have a career as a financial analyst!

To make sure you’re prepared, check out our free financial training courses online!

Financial Analyst Job Description

The following are all aspects of a financial analyst’s duties:

• Perform financial forecastingProjecting Income Statement Line ItemsWe discuss the different methods of projecting income statement line items. Projecting income statement line items begins with sales revenue, then cost of goods sold, gross profit, selling general and admin (SG&A), depreciation, amortization, taxes, EBITDA, and net income. This guide has examples, reporting, and operational metrics tracking
• Analyze financial data and create financial modelsTypes of Financial ModelsThe most common types of financial models include: 3 statement model, DCF model, M&A model, LBO model, budget model. Discover the top 10 types of Excel models in this detailed guide, including images and examples of each. Financial modeling is performed for many reasons including to value a business, raise money for decision support
• Report on financial performance and prepare for regular leadership reviews
• Analyze past results, perform variance analysisVariance AnalysisVariance analysis can be summarized as an analysis of the difference between planned and actual numbers. The sum of all variances gives a picture of the overall over-performance or under-performance for a particular reporting period. For each individual item, companies assess its favorability by comparing actual costs, identify trends, and make recommendations for improvements
• Work closely with the accounting team to ensure accurate financial reporting
• Evaluate financial performance by comparing and analyzing actual results with plans and forecastsProjecting Income Statement Line ItemsWe discuss the different methods of projecting income statement line items. Projecting income statement line items begins with sales revenue, then cost of goods sold, gross profit, selling general and admin (SG&A), depreciation, amortization, taxes, EBITDA, and net income. This guide has examples
• Guide the cost analysisCost DriverA cost driver is the direct cause of a cost, and its effect is on the total cost incurred. For example, if you are to determine the amount of electricity consumed in a particular period, the number of units consumed determines the total bill for electricity. In such a scenario, the units of electricity consumed process by establishing and enforcing policies and procedures
• Provide analysis of trends and forecasts and recommend actions for optimization
• Recommend actions by analyzing and interpreting data and making comparative analyses; study proposed changes in methods and materials
• Identify and drive process improvements, including the creation of standard and ad-hoc reports, tools, and Excel dashboards
• Increase productivity by developing automated reporting/forecasting tools
• Perform market research, data mining, business intelligence, and valuation compsComparable Company AnalysisHow to perform Comparable Company Analysis. This guide shows you step-by-step how to build comparable company analysis ("Comps"), includes a free template and many examples. Comps is a relative valuation methodology that looks at ratios of similar public companies and uses them to derive the value of another business
• Maintain a strong financial analysis foundation creating forecasts and modelsTypes of Financial ModelsThe most common types of financial models include: 3 statement model, DCF model, M&A model, LBO model, budget model. Discover the top 10 types of Excel models in this detailed guide, including images and examples of each. Financial modeling is performed for many reasons including to value a business, raise money
• Proficiency with Microsoft Excel is mentioned in virtually any financial analyst job description; familiarity with data query/data management tools is extremely helpful (Access, SQL, Business Objects)

Financial Analyst Job Description – Basic Qualifications

Financial Analyst Job Description – Preferred Qualifications

Financial Analyst Job Description – Personality and Interpersonal Skills

• Ability to streamline functions and passion to learn and grow
• Strong interpersonal skills, including written and oral communication skills
• Comfort dealing with ambiguity and the ability to work independently
• Experience working with, and presenting to, senior executives
• Excellent communication and presentation skills; be comfortable interacting with executive-level management
• Strong financial modeling experience

Key Responsibilities

• Grow financial performance through analysis of financial results, forecasts, variances, and trends
• Create recommendations to be presented to management and executives
• Develop financial models to support valuationValuation MethodsWhen valuing a company as a going concern there are three main valuation methods used: DCF analysis, comparable companies, and precedent transactions. These methods of valuation are used in investment banking, equity research, private equity, corporate development, mergers & acquisitions, leveraged buyouts and finance, planning, and forecasting
• Aid in the capital budgetingCapital Budgeting Best PracticesCapital budgeting refers to the decision-making process that companies follow with regards to which capital-intensive projects they should pursue. Such capital-intensive projects could be anything from opening a new factory, a significant workforce expansion, entering a new market and expenditure planning processes
• Reconcile existing transactions through cross-referencing of incoming and outgoing data
• Conduct comparables analysis and market research to support internal financial analysis
• Maintain up-to-date technical knowledge of financial instruments, market conditions, and trends

To make sure you’re prepared, check out our free financial analyst courses online!

What is Financial Analysis?

The financial analyst position is imperative for the financial planning and analysisFP&A AnalystBecome an FP&A Analyst at a corporation. We outline the salary, skills, personality, and training you need for FP&A jobs and a successful finance career. FP&A analysts, managers, and directors are responsible for providing executives with the analysis and information they need department of a business. They are responsible for analyzing financial statementsAnalysis of Financial StatementsHow to perform Analysis of Financial Statements. This guide will teach you to perform financial statement analysis of the income statement, balance sheet, and cash flow statement including margins, ratios, growth, liquiditiy, leverage, rates of return and profitability. See examples and step-by-step instruction and predicting the future performance of the company. This may include forecasting future revenuesRevenueRevenue is the value of all sales of goods and services recognized by a company in a period. Revenue (also referred to as Sales or Income) forms the beginning of a company’s Income Statement and is often considered the “Top Line” of a business. and expenditures, as well as modeling capital structure and budgeting.

Financial analysts are also often responsible for keeping track of a company’s financial plan. Analyzing the company’s performance, alongside changes and market trends, not only helps the analyst create forecasts, but also allows them to calculate variances between those forecasts and actuals. It is the analysts’ job to track down and explain the causes of these variances.

Analysts may also often report to management and stakeholders regarding their findings and may contribute to shaping the strategic planning of the company.

To make sure you’re prepared, check out our free financial analysis courses online!

Major Roles of Financial Analysts

Let’s go beyond the official Financial Analyst job description and look more in-depth at what analysts do in practical terms:

• Financial Analysts play a role in determining a company’s present value and future business abilitiesBusiness Valuation CertificateOur business valuation certification is earned by completing our online course and learning how to value a company. The certificate is verified by CFI.. The duties of the financial analyst revolve around analyzing financial information to come up with forecasts for a business and help it make informed, and hopefully correct, decisions.

• Analysts will often create and maintain various spreadsheets and dashboards to aid in their analysis and insight provision. This helps provide a clear interpretation of trends and data. Some analysts are also tasked with creating models to value potential investment opportunities, similar to the role of an equity research associate.

• In-house financial analysts may meet with various project managers to discuss performance. It may be the duty of an analyst to interview these managers to ascertain the causes of certain variances of performance.

What are Typical Credentials for Financial Analysts?

Most analysts have a bachelor’s or master’s in a business-related field. The most common specialization is in finance, although some analysts recommend starting with an accounting degree, as it provides a stronger foundation for analyzing the workings of financial statementsThree Financial StatementsThe three financial statements are the income statement, the balance sheet, and the statement of cash flows. These three core statements are intricately linked to each other and this guide will explain how they all fit together. By following the steps below you'll be able to connect the three statements on your own..

Adding a practical designation, like CFI’s Financial Modeling & Valuation Analyst (FMVA)™FMVA® CertificationThe Financial Modeling & Valuation Analyst (FMVA)® accreditation is a global standard for financial analysts that covers finance, accounting, financial modeling, valuation, budgeting, forecasting, presentations, and strategy. certification, is becoming an increasingly popular professional upgrade for a financial analyst. This financial modeling focused designation teaches analysts how to produce advanced financial analysis using Excel, PowerPoint, and the real tools of an analyst. Learn more about the top financial analyst certificationsTop Finance CertificationsList of the top finance certifications. Get an overview of the best financial certifications for professionals around the world working in the field. This guide compares the top 6 programs to become a certified financial analyst from various program providers such as CFA, CPA, CAIA, CFP, FRM, FMVA.

This financial analyst job description is inspired by the responsibilities outlined by postings from Goldman Sachs, GE Capital, Fidelity Investments, and PricewaterhouseCoopers.

To make sure you’re prepared for an interview, check out CFI’s free financial analysis courses online!

Career Map

To see what type of position you’re best suited for, explore our interactive career mapMapInteractive Career Map - discover your career path in corporate finance. Learn which job is right for you: salary, personality, skills, certifications etc. and see if you’ve got everything this financial analyst job description is looking for!

Financial analyst bank jobs include investment bankingInvestment BankingInvestment banking is the division of a bank or financial institution that serves governments, corporations, and institutions by providing underwriting (capital raising) and mergers and acquisitions (M&A) advisory services. Investment banks act as intermediaries, research, sales & trading, and commercial bankingCommercial Banking Career ProfileA Commercial Banking career path is providing clients with credit products such as term loans, revolving lines of credit, syndicated facilities, cash management services, and other fixed income products.  As a credit analyst or account manager, you deliver financial advice. Institutional jobs include private equityPrivate Equity Career ProfilePrivate equity analysts & associates perform similar work as in investment banking. The job includes financial modeling, valuation, long hours & high pay. Private equity (PE) is a common career progression for investment bankers (IB).  Analysts in IB often dream of “graduating” to the buy side,, research, and portfolio management. Jobs at corporations include investor relations, corporate developmentCorporate DevelopmentCorporate development is the group at a corporation responsible for strategic decisions to grow and restructure its business, establish strategic partnerships, engage in mergers & acquisitions (M&A), and/or achieve organizational excellence. Corp Dev also pursues opportunities that leverage the value of the company’s business platform., treasury, and financial planning and analysis (FP&A)FP&AFinancial Planning and Analysis (FP&A) is an important function at a corporation. FP&A professionals support executive decision making for the CEO, CFO and Board of Directors with planning, analysis, and modeling. Learn what the job of an FP&A analyst, manager, or director entails - salary, requirements, education, skills.

MapInteractive Career Map - discover your career path in corporate finance. Learn which job is right for you: salary, personality, skills, certifications etc.

Beyond the Financial Analyst Job Description

Hopefully, this guide has given you a clear indication of the job requirements and profile for financial analysts. CFI is the official provider of the global Financial Modeling & Valuation Analyst (FMVA)™FMVA® CertificationThe Financial Modeling & Valuation Analyst (FMVA)® accreditation is a global standard for financial analysts that covers finance, accounting, financial modeling, valuation, budgeting, forecasting, presentations, and strategy.  certification program which is designed to help anyone become a world-class finance professional.

To learn more, check out these additional job descriptions below:

• How to be a great analystThe Analyst Trifecta® GuideThe ultimate guide on how to be a world-class financial analyst. Do you want to be a world-class financial analyst?  Are you looking to follow industry-leading best practices and stand out from the crowd? Our process, called The Analyst Trifecta® consists of analytics, presentation & soft skills
• Personal Banker Job DescriptionPersonal Banker Job DescriptionPersonal bankers offer help in managing and overseeing the financial needs of a client's personal bank account. Personal Banker Job Description details include Aid customers in opening, managing and optimizing their bank accounts and other products, pursue leads and potential customers
• Equity Research Job DescriptionEquity Research Associate Job DescriptionThis equity research associate job description outlines the key skills, experience, and education required for the job. Equity research associates provide analysis on securities data to inform fund managers and aid them in the investment process. This field requires problem-solving expertise and a broad knowledge of the stock market
• Investment Banking Job DescriptionInvestment Banking Job DescriptionThis Investment Banking Job Description outlines the main skills, education, and work experience required to become an IB analyst or associate at a top
• Credit Analyst Job DescriptionCredit Analyst Job DescriptionThis Credit Analyst Job Description outlines the key skills, experience, and education for the position. A credit analyst needs to assess the creditworthiness of a borrower and the risk profile of a loan. This is a typical example of a credit analyst job description based on real postings from lenders like HSBC