Everything starts when an individual enters into this field through several steps. These steps help an individual understand, manage and analyze the financial information and data that are needed for the analysis. Financial analysts need to make accurate analyses, draw conclusions, and forecast future trends through financial information.
As the name suggests, ascension to the financial analyst is a process that an individual follows to become a financial analyst in the first place. Just like other fields, this field also has its system and processes to follow.
Starting Career as a Financial Analyst
The primary step to start this career is to choose the path that best suits the person’s personality. Many financial analysts opt to be consultants, or researchers, for example. Such professionals need to understand and analyze the financial data, and information, as well as forecast and predict the market to provide advisory services to clients. Consultants need to perform analytical work concerning:
- financial reports
- earnings reports
- balance sheets
- other types of financial reports
Responsibilities of the Financial Analysis Professional
Research work is one of the main responsibilities of a financial analyst. This requires thorough research about the financial aspects, as well as statistics and accounting. Analyzing market information can help make accurate projections. It is essential to know financial analysis to be a good financial analyst.
After doing the required research work, the analyst then needs to prepare the financial report. In the past days, the financial analyst had to make the financial summary and forecasts employing mathematical and statistical methods. Today, computer applications are used to make these kinds of statements. Some of the popular applications include modules such as:
- Micro Focus Financial Analyst
- Funnel Projector Financial Analyst
- Micro Focus Composite Adapter for MS MR
With the advent of new applications and technology, financial analysts can now make financial reports using applications such as Xbow Financial Analyst.
A financial analyst also has to make an investment thesis. The thesis generally consists of five topics which include: an assessment of the company’s resources, an analysis of the industry, and the economic factors, the management of the business, as well as risk-management techniques. In addition, the financial analyst prepares the forecast of the future stock prices and financial results. They have to ensure that their forecasts are correct and provide accurate figures. After all, one of the main roles of financial analysts in a company is as an advisor. They are responsible to help management to come up with strategies to achieve their set goals.
Training and Work Opportunities
In the past, financial analysts could only work in financial institutions. With the introduction of software in the field, financial analysts can now also operate for small as well as large firms. The role of a financial professional is thus made more complex as he has to ensure that the financial reports are accurate and provide reliable figures. To become a good financial analyst, it is important to undergo training at some of the best colleges in the United States.
Once a person becomes an accredited financial analyst, he is allowed to have two jobs simultaneously. However, there are strict regulations that govern the number of hours one can work. As financial reports are quite confidential, financial analysts are strictly forbidden from making their subordinates work for them during their research. Moreover, financial analysts cannot give opinions on the stock markets.
To be a good financial analyst, one needs to be aware of the changes taking place in the financial market. He must also be updated about the market trends as these may have an impact on the way he presents his findings to the management and clients. He must keep himself abreast of all the happenings in the financial industry because this way, he will know what to expect next. As such, having an advanced education is something that should be considered if you are aiming to become one. Taking courses in finance will equip you with the necessary skills needed to perform well in your job.
Once a person has reached a certain level of education and has graduated from an accredited school, the next step to take is to find a reputable university that can offer Financial Analyst program courses. When a university is decided upon, the next step is to choose the specialization. This can range from individual investors, investment banking, global financial markets, macroeconomics, and microeconomics. Each of these specializations will allow someone to become a financial analyst in their respective field of expertise. In addition, you can also choose to apply for an MBA which is a Masters of Business Administration. This will help make you more qualified when it comes to finding jobs in the financial industry.
Financial Analyst Career: Summary
If you want to be a successful financial analyst, then you must know what you are getting yourself into. If you have not done your homework regarding financial analyst ascension, then you might be putting yourself at risk. Even though the job outlook for financial analysts looks strong, there are still a lot of people who are interested in working in this field because of the opportunity it gives them to help companies improve.
This is a career that requires immense patience and perseverance. Financial analysts may also face stiff competition from other financial analysts from both within the organization and outside. However, once you attain a level of success, your salary would also go up. Financial professionals of this field can work in all sorts of industries like banking, insurance, pharmaceuticals, finance, manufacturing, insurance, securities, and retail businesses. A financial analyst is therefore always looking for new opportunities. For this, they may have to travel abroad to take up a new job.