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.  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 analyst courses online!

Financial Analyst Job Description

• 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 analysis, identify trends, and make recommendations for improvements
• Work closely with the accounting team to ensure accurate financial reporting and decision support
• 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 cost analysis 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 models
• Proficiency with Microsoft Excel is mentioned in virtually any financial analyst job description; familiarity with data query/data management tools 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 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 budgeting 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
• Responsible for maintaining up-to-date technical knowledge on financial instruments, market conditions and trends

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

What is financial analysis?

Financial analysts are imperative to 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, information they need to make operational, strategic decisions functions of a business. They are responsible for analyzing financial statements and inspecting and predicting future performance of the company. This may include forecasting future revenues 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 the analyst to calculate variances between those forecasts and actuals. It is the financial 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 analyst 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 therefore 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 financial analysts are also tasked with creating models to value potential investment opportunities, similarly to the roles of an equity research associate.

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

What are typical credentials for financial analysts?

Most financial 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 the 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 & Valueation 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 a financial 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 analyst courses online!

Career map

To see what type of financial analyst you’re best suited for, explore our interactive career mapMapSee a real Financial Analyst Job Description including all the skills, experience, and education required to be the successful candidate for the job. Perform financial forecasting, reporting, and operational metrics tracking, analyze financial data, create financial models and see if you’ve got everything this financial analyst job description is looking for!

MapSee a real Financial Analyst Job Description including all the skills, experience, and education required to be the successful candidate for the job. Perform financial forecasting, reporting, and operational metrics tracking, analyze financial data, create financial models

Beyond the financial analyst job description

Hopefully, this guide has given you a clear indication of the job requirements for financial analysts. CFI is the official provider of the global Financial Modeling & Valuation Analyst (FMVA)™FMVA™ CertificationThe Financial Modeling & Valueation 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 financial analyst.

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

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