what is a financial analyst?
A financial analyst guides individuals or businesses on investment opportunities with lucrative outcomes. You use industry knowledge, market trends and financial data to find the best strategy for continued growth. Your job involves analyzing economic trends, financial information and business news.
As a financial analyst, you work in investment companies or financial institutions like banks. Some businesses also need internal finance analysts to monitor their investment strategies and minimize losses.
Since you build financial models for data analysis and forecasting, proficiency in various statistical software for analysis and building portfolios is important. The tools help you keep track of past and present financial information and use prediction models to determine if an investment deal is viable.
what does a financial analyst do?
As a financial analyst, you can work as a buy-side analyst. Your job entails developing investment strategies for institutional investors, including hedge funds, insurance companies and mutual funds. Finance analysts also work for the sell side and guide individuals or financial service agents on the best-performing stocks, bonds and investments. Switching between buyer-side and seller-side clients is possible since the roles and prediction models are similar. However, buyer-side finance analysts have broader responsibilities and require accuracy.
Would working as a financial analyst suit your analytical skills? Then read on to find out what competencies and qualifications you need to thrive in a financial analyst role.
financial analyst rolesaverage financial analyst salary
According to Job Bank, a financial analyst earns an average salary of $102,334 per year — or an hourly rate of $52.48. The earnings fluctuate based on experience, area of expertise and qualifications. With minimal qualifications, you receive a salary of $72,584 annually. Your earnings increase as you improve your skills and gain expertise in the role. The highest-paid financial analysts earn over $133,349 yearly.
what factors influence the salary of a financial analyst?
Various factors determine the earnings of a financial analyst. Some of the internal factors that affect your earnings include qualification and experience. When you work in an entry-level position, your starting salary is lower since you have minimal skills. Your experience also determines your salary. You negotiate a higher salary when you have additional expertise.
The location also influences your earnings. Some territories and regions have a higher salary compared to others. For instance, working in Saskatchewan, Alberta, and Nunavut attracts higher earnings due to the high demand for the role. Your earnings are also higher in large cities due to the high cost of living.
types of financial analysts
Some types of financial analysts include:
- investment banking analysts: your responsibility as an investment banking analyst is to help companies meet their financial goals by looking for investment opportunities. You also create economic models and complete evaluations to determine the performance of current investments.
- equity research analysts: your job is to oversee investment portfolios for companies in a particular industry. You can work for both buy-side and sell-side firms to help them decide the securities to hold and the ones to sell.
- treasury analysts: as a treasury analyst, you manage finances in various government agencies. You oversee investment income, cash flow and asset levels. You also advise on ways to improve financial health.
- corporate development analysts: your job is to optimize business processes and enhance income from business operations. You assess operations and expenses and develop better strategies.
working as a financial analyst
Financial analysts help businesses and individuals make the best investment decisions and grow their finances. If you are interested in the role, check out the tasks and responsibilities of a financial analyst.
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what does a financial analyst do?
Specific roles depend on the industry and company you work for, but typical duties include:
- organizing information: your job as a finance analyst begins with gathering information from historical financial reports, macroeconomic data, stock price information and accounting information from ledgers. You organize the information in databases or Excel sheets, clean up the data and arrange it in a format that makes sense. You also categorize the data and add formulas to ensure it has consistent formatting that is easy to understand.
- analyzing financial results: after cleaning up the data, you analyze the historical information using ratios and metrics to determine patterns. Your job is to identify trends and compare the performance with other companies in the industry. You can evaluate the company's value and find ways to improve investment income from the analysis.
- forecasting and making projections: your analysis should reveal company performance predictions. You can find various financial models to help you make projections and predict the company's future performance. If you analyze the viability of investment opportunities, the financial models help you make investment decisions.
- developing recommendations: as a finance analyst, your job doesn't end with crunching numbers and creating financial models. You provide recommendations on ways to improve business operations based on the projections. For instance, you list viable investment opportunities and recommend improving revenue and market share. Aside from writing reports, you make presentations to clients and investors.
- risk analysis: as a finance analyst, you can specialize in risk analysis and assess potential risks in a company's financial strategy. You help the managers identify sources of losses and minimize the risks involved in financial investments to increase profits.
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work environment of a financial analyst
Finance analysts work in financial institutions like banks, insurance companies and investment firms with a role as insurance consultants. In financial companies, you advise on investment opportunities and help firms grow. Your work is primarily office-based since you spend most of the time analyzing data and building financial models. In government institutions, you help the criminal investigation department in identifying fraud.
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who are your colleagues?
As a financial analyst, you work in banks, investment companies and financial institutions. You collaborate with mortgage brokers, bank managers and finance managers. You also work with accounting technicians, administrative assistants and business systems analysts. You work within an office environment alongside HR managers and customer service representatives.
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financial analyst work schedule
Finance analysts work the regular Monday to Friday workweek, from 9 am to 5 pm. Although your work schedule takes 40 hours a week, you add a few hours to meet your deadlines. Sometimes, your clients meet you outside work hours to discuss investment opportunities. Meeting clients also requires travelling to various business premises and attending investment conferences. If you work for a multinational investment firm, overseas travel may be a part of your job. Most financial analysts work full-time, but you can find part-time opportunities.
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career opportunities as a financial analyst
As a finance analyst, you specialize in an area of study like portfolio management or fund management. Alternatively, become a ratings or risk analyst and focus on helping companies minimize costs. When you are a junior finance analyst, you should work hard to become a senior financial analyst, overseeing larger projects and assisting the executives in charge. From a senior financial analyst role, you can progress to a finance manager position before becoming the finance director or chief financial officer. The finance analyst job also has self-employment opportunities, but you'll need a high level of expertise.
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advantages of finding a job as a financial analyst through randstad
Working with Randstad offers you a range of benefits.
- always a contact person you can fall back on and ask for help from
- many training opportunities
- a range of jobs in your area
financial analyst skills and education
In order to work as a financial analyst, the following educational requirements are necessary:
- educational qualifications: you require educational qualifications such as a bachelor’s degree in business administration, finance, commerce and economics. Pursue a degree course to learn the principles of working as a financial analyst. You can also join the role by completing industry courses and on-the-job training.
- certification: financial analysis is a regulated profession in Canada, and you require professional certification from a regulatory authority. Gaining a Chartered Financial Analyst (CFA) designation from a CFA institute is also important. Some employers may require financial analysts to be Certified Treasury professionals or Chartered Professional Accountants. To work in Manitoba as a financial analyst, you require licensing from the Manitoba Securities Commission, while in Saskatchewan, the profession is regulated by the Saskatchewan Financial Services Commission.
competencies and characteristics of financial analysts
Aside from educational and academic requirements, you require the following soft skills to excel in the role:
- research skills: your job involves mining data from various sources for financial analysis. Research skills help you find historical data from company records and macroeconomic data from industry sources. You can make predictions from the data analysis with sufficient information.
- attention to detail: being detail-oriented helps you notice market trends and make accurate predictions. Attentiveness to detail is important in making insightful conclusions based on changes in the market.
- analytical skills: as a finance analyst, you evaluate tons of data and make accurate conclusions. You require analytical skills to ask the right questions, draw accurate conclusions and discern the best solutions for your clients.
- math skills: you should be good at math and with numbers since you handle complex calculations in financial modelling. Sometimes, you use complex equations to complete data analysis. Math skills also help you formulate financial models, including charts and graphs.
- communication skills: you need communication skills to explain financial jargon to clients and investors. Communication and people skills also help you maintain relationships with stakeholders to gain access to information.
FAQs about financial analyst jobs
Here, you will find the answers to the most frequently asked questions about the profession of a financial analyst.
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what is the job of financial analysts?
As a financial analyst, you forecast financial outcomes and help the company make financial and investment decisions. For instance, you perform budgeting variance and make forecasts for various levels of management. You also analyze past market trends and evaluate the financial risks to ensure the business is growing.
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are financial analysts in demand in Canada?
Working as a financial analyst in Canada is an exciting career with promising job opportunities. You can grow your expertise to become an investment institution's finance manager or portfolio manager.
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what do you require to be a financial analyst?
To work as a financial analyst, you require a degree in commerce, business administration, finance, accounting and economics; you can also pursue another industry course to gain skills in the role. A master's degree in business administration also improves your chances of excelling in the role.
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how much does a financial analyst earn?
The average remuneration of a financial analyst is $102,334 annually; your salary fluctuates based on experience and qualifications. You earn a lower salary of $72,584 yearly when you are new in the role. As your experience improves, your earnings increase to over $133,349 annually.
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is being a financial analyst a hard job?
Working as a financial analyst involves analyzing various marketing trends and reviewing different reports. The workload and the tight deadlines usually make the role challenging. You are also expected to make tough decisions.
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how do I find a job as a financial analyst?
Finding a job near you as a financial analyst is easy. Search our job offers. Have you found what you're looking for? Then submit your application using the ‘Apply’ button top right on the page. No jobs available right now? Send us your resume and we'll pass it on to a recruiter who will contact you if an opportunity opens up for you.
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