Role of a financial analyst?

What does a financial analyst actually do on a daily basis? I'm interested in finance as a career and want to know what skills or qualifications are typically necessary for this job. Is it as analytical as it sounds?

A financial analyst primarily analyzes financial data and uses these insights to help businesses make informed financial decisions, track performance, and create financial projections. Daily tasks may include:

- Evaluating current and historical financial data

- Studying economic and business trends

- Reviewing a company's financial statements to determine its value

- Meeting with company management to gain better insight into the company’s prospects and management style

- Preparing written reports and making presentations

Being a financial analyst can be quite analytical, as the job demands a solid understanding of financial concepts, keen attention to detail, critical thinking and problem-solving abilities, and proficiency in spreadsheet and database software. Knowledge of statistical software and business intelligence tools may also be advantageous.

As for qualifications, most financial analysts have a bachelor's degree in finance, accounting, economics, statistics, or a related field. Some roles may require a master's degree, particularly an MBA or a Master's in finance. Having credentials such as the Chartered Financial Analyst (CFA) certification can also increase job prospects.

Internships or relevant work experience can also enhance your skillset and make you more appealing to potential employers. In addition to these, soft skills like communication, adaptability, and teamwork are valuable in collaborative settings and client-facing roles.

In summary, a career as a financial analyst is not only about crunching numbers— it's about leveraging financial data to inform strategic business decisions. Therefore, it's as analytical as it sounds, but with a healthy mix of strategy and communication.