The Financial Analyst Job Description
The financial analyst job description is one that varies with the company you work for, the industry you’re in, and the types of tasks your team is assigned. It’s a term that generally describes the entry-level position within finance and one that covers a variety of different tasks. Whether it be analyzing the finances of a company, understanding the financials of a certain situation, or developing a model or projection for an event in the future, there are lots of aspects to the job description of a financial analyst.
What Kind of Tasks Does a Financial Analyst Do?
The Financial Analyst position is one that involves a variety of different tasks. A lot of what a Financial Analyst does depends on the projects the team is working on, the type of documents or materials they need to continue moving forward, and the financial precautions the company needs to take. It may involve working on the analysis of a company’s financials, developing a financial model for a certain project or situation, or evaluating the potential effects of a company decision. There are lots of projects and tasks that come with being a Financial Analyst, and a lot of what you do depends on the company you work for, the team you’re in, and the industry or product group that you’re in.
It’s difficult to say that these are the tasks each Financial Analyst does, but there are common or similar tasks that many Financial Analysts find themselves doing and performing.
Some of the tasks common to the Financial Analyst Job Description are…
- Analyzing Various Trends, Historical Performance, and Data
- Completing Financial Models
- Inputting Various Data
- Tracking The Progression or Movement of Deals and Transactions
- Reconciling Any Mistakes or Errors
- Supporting Any Senior Staff or Superiors
- Coordinating Any Meetings, Phone Calls, or Video Conferences
- Gathering Information and Researching To Find Supporting Data or Evidence
- Monitoring Any News, Movements, Changes, Events, or Developments
- Using Various Formulas To Calculate Important Metrics
These are just a few of the tasks that might be included within the job description of a financial analyst. Odds are the topics you’re dealing in, and the type of numbers you’re evaluating or utilizing are going to vary with the industry and project. Each industry, company, and team is involved with different types of projects, that involve different numbers and different metrics.
What Should A Financial Analyst Expect?
As a financial analyst, there’s a good chance you are at the beginning of your career or entering a company at an entry-level position. It’s important to keep in mind when you’re trying to figure out what to expect as a financial analyst because odds are, you’ll be handling the work your superiors aren’t looking to do but has to get done. Unfortunately, there are certain tasks that are tedious in nature, and annoying to work on, but that’s what the entry-level position is about. There’s a good chance it means putting together the documentation the company needs, working on completing a financial model, or completing tasks like data input that have to get done but are assigned to lower-level employees.
The Financial Analyst position is one where you’re gaining experience and exposure to the industry, you’re in. You’re able to get your feet wet, and learn about the different functions of the company, the way they industry works, and the position you’re in. With anything new, there might also be a learning curb, where you have to figure out what you’re doing, understand the tasks you’re completing, and learn the type of skills you’ll need.
The hours for financial analyst positions are often longer than most of the other positions within a company. Depending on the industry within finance you’re going into, and the types of workloads you’re getting handed, the days and weeks might be long and difficult. As the low man on the totem pole, you might be handed long days, and difficult assignments, but it’s the nature of the position and the company’s structure/hierarchy. Completing the work you’ve been assigned, in the time frame you’ve been given is sometimes a tall task. One that requires you to stay late, work past the time others are leaving, and completing the work you need to complete, on time, and on point. As the Analyst, it’s likely your responsibility to make sure all the work and documents are finished by the date and time the company needs them to be completed by.
What Are The Job Requirements or Specifications to Become A Financial Analyst?
The job requirements or specifications to become a Financial Analyst are different within each industry, and each company you might be looking to work for. If it’s an entry-level Analyst position, within Finance or the Finance department of a company, it might be a college degree with prior intern experience, experience in a similar type of position, the college major you have, or not much experience at all. Having some experience or background within finance, whether it be certain classes you’re taking, the major your working in, an internship, or working experience can make it easier to secure a Financial Analyst position. It shows companies and their personnel that you have an interest in finance, and gives you an answer to the interview question why finance?
A lot of the requirements also depend on the company and industry you’re looking to get into. Considering the amount of competition or other applicants for the position will play a role in the type of experience or requirements a company or industry may be looking for. If you’re looking to get into a tougher or more sought-after industry, where candidates with impressive Resumes, and lots of work experience are pursuing, you’ll be competing against them, and have to find a way to stand out. The requirements for positions like those, may be multiple prior years of internship experience, a few years of working experience, or a top tier college degree. If you’re looking to pursue a general Financial Analyst position, it might be some experience working within Finance, or with Finance related tasks. It also depends if the company you’re looking to work for is a top tier firm, with lots of potential candidates, or a middle of the pack company. The companies who are at the top, have a larger selection of candidates for their open positions, making it more difficult, and one that comes with tougher job requirements as well.
What Skills Might You Need As A Financial Analyst?
Each Financial Analyst position comes with a variety of different skills, and its own unique skillset. With that being said, there are certain skills that are used across many different Financial Analyst positions, and ones that can be helpful in learning or acquiring prior to trying to become a Financial Analyst…
- Understanding Financial Statements
- Balance Sheet, Income Statement, Statement of Cash Flows
- Calculating Important Financial Metrics: IRR, NPV, ROI
- Ability To Create Spreadsheets, Documents, and Memo’s
- Knowing The Meaning Behind Certain Metrics or Formulas
- Being Organized, Keeping Track Of Multiple Tasks At Once
- Industry Specific Knowledge or Knowhow
- Gathering Market Research or Market Reports
- Searching For Information and Condensing Important Information
- Connecting The Dots, Independently Figuring Tasks Out
- Collaborating With Other Teams, Departments, Companies
Why Become A Financial Analyst?
The Financial Analyst position is a position that provides candidates and job seekers lots of different skillsets and valuable experience. It’s often a steppingstone for a career in finance, or a career involving finance, whether it be for a company, a small practice, or yourself. The Financial Analyst position is typically an entry-level position, where you begin to get your feet wet, learn the nuances of finance, and gain real-world experience. Through becoming a Financial Analyst, you can learn how a business makes its financial decisions, the type of investments or opportunities it looks for, and the way to analyze or evaluate situations involving finances or have financial implications.
By becoming a Financial Analyst, you enter into the arena of Finance. You’re able to see how the finances behind a particular industry works, see the way a company treats its finances, and gain more skills as well. Often times, as a Financial Analyst, you’re evaluating and analyzing the performance, results, and operations of different investments, different companies, and different ways a business produces revenue. You can learn about a variety of different fields, gain a financial skillset, and learn how to correctly evaluate the financial performance of a revenue stream, a company, or a business.
You’re also able to see the type of paths and careers that people within Finance have. You can see the type of tracks they’re on, the type of positions they have, and the responsibilities they have as well. You can see whether you’d like to continue on one of those paths, if you’d like to switch to a different one, or pursue a particular area or niche within Finance.
The position gives you flexibility and options as to where you’d like to go next. You’re able to gain real world financial experience, that can be applied to many different industries, many different companies, and open up lots of opportunities for you. The skills you learn, and the skillsets you gain can be applied to lots of different industries, and to many different career paths as well.
The Different Industries With Financial Analysts
The Financial Analyst position is one that is incorporated into many different industries, and many different companies. The Financial Analyst position is sometimes labeled, or titled simply as an Analyst, but may be working with financial tasks, or assignments. The term Analyst is generally used as a title for many entry-level positions, especially within Finance. Depending on the company you work for, the niche you’re in, or the industry you operate in, the Financial Analyst position tends to vary in nature, and the tasks, responsibilities, and assignments may change as well.
General Finance: Certain companies have Financial Analysts working within their Finance Departments, or on Financial related tasks, and the position title is Financial Analyst. There are a variety of different tasks that may a Financial Analyst in a General Finance position may work on, whether it’s helping to evaluate and asses a new potential investment, analyze or research a new market they may enter into, or dive into the company’s past performance, there are lots of different tasks that a Financial Analyst in a General Finance company or position may be tasked with.
Real Estate: There are lots of different ways and areas that Analysts or Financial Analysts are involved incorporated into Real Estate. Within the Real Estate industry, there are lots of Financial documents, projects, and tasks that need to be completed, which is where a Financial Analyst comes into play. Whether it might be helping to complete a Financial Model, complete an Investment Memorandum or Summary including Financial data or information, or researching about the surrounding area or market a property is in, there are lots of assignments and projects that a Real Estate Financial Analyst may be tasked with.
Private Equity: The Analyst or Financial Analyst position within Private Equity is one of the more sought-after Analyst positions that are available. Often labeled as the buy side, an Analyst within Private Equity, is working on behalf of a company or capital provider to help structure and evaluate different deals or transactions that involve their company purchasing or providing equity to make it happen. Private Equity Analyst positions are generally more focused on the type of returns, or the amount of money the company stands to make from a certain investment and determining if it meets the criteria they abide by and will generate the type of returns their capital or investors are looking for.
Venture Capital: When it comes to Venture Capital, they also tend to have Analysts or Financial Analysts as well. The tasks may change or differ in nature from the ones above, to understanding or evaluating the potential for a product or service, projecting or modelling the future success of a potential investment or researching a potential market or new entrant to a market. The topics and subjects may be different in nature, but much of what a Financial Analyst or Analyst within Venture Capital is similar to what a Financial Analyst does in Real Estate, or Private Equity, it’s just a different subject, and a different topic being evaluated.
Investment Banking: Financial Analysts within Investment Banking, are often considered Analysts or Investment Banking Analysts. They are often there to help senior level people or execs with the work they need, like Financial Models, Presentations, and any prep work for the deals, transactions, or projects they’re working on. There are different divisions within Investment Banking, like Mergers and Acquisitions, Restructuring, Equity Capital Markets, and Debt Capital Markets. Financial Analysts in each group or department have a different set of tasks and responsibilities to complete, but there is a heavy focus on creating and putting together Financial Models, Presentations, and Summaries/Memo’s.
Investment Management: Financial Analysts within Investment Management can be labeled as an Analyst or have a particular focus like a Sales and Trading Analyst. With Investment Management, Financial Analysts are often working on behalf of a company or a department with a specific purpose, whether it’s Research, Sales and Trading, or one of the other divisions. The tasks depend on which sector their team or company operate within, the type of information or knowledge they’re looking for, and the type of materials or documents they need to put together.
Corporate Finance: Financial Analysts working within Corporate Finance, or on a Corporate Finance team, are often working on behalf of a specific company, a specific project, or on specific tasks that pertain to the Corporate Finances behind a company, project, or team. The tasks often include figuring out market information or research, projecting the type of sales or revenue a specific project, company, or business might produce. Or better understand the numbers of a specific task or project that may involve a company, or that a company is evaluating.
Conclusion
The Financial Analyst Job Description is one that comes with a variety of different elements and involves different types of tasks, skills, and projects depending on the company you work for, the team you’re on, and the market you’re in. Each Financial Analyst position comes with a different set of tasks, but many of them involve working with numbers, navigating different spreadsheets or financial models, and creating detailed summaries or memorandums for other people to see. As a Financial Analyst, you’re gaining real-world experience, accumulating valuable skills, and beginning to understand the way the business you’re in operates, or the way the company you work for functions. The path to becoming a Financial Analyst depends on the company you’re looking to work for, and the niche you’re looking to work in. Many Financial Analysts often have some experience, whether it be another job within Finance, an internship experience within Finance or there is a Financial element to their college major. The skills you might need as a Financial Analyst, have a lot to do with understanding the numbers you’re looking at, creating documents, presentations, or financial models, and condensing the information you have into a clear and concise format for senior people to review. Becoming a Financial Analyst opens lots of doors for you, and helps you learn many valuable skills and skillsets that can be applied to many different industries and many different areas. There are many industries that have Financial Analysts or Analyst level positions that deal with Finance, like Real Estate, Corporate Finance, Venture Capital, Private Equity, General Finance, Investment Banking, and Investment Management. The Financial Analyst position is one that comes with many different tasks, and incorporates many different aspects of Finance depending on the business you work for, the team you work on, and the niche you work in. The experience within each Financial Analyst position may be different, but there are many similarities that can be seen across the many different company’s and the many different industries that incorporate them into their business.
