Financial Analyst Salary and Job Description

Financial analysis is critical to achieving business success. Insightful financial analysis can do the following:

Determine whether an organization is managing its assets efficiently
Reveal whether an organization is prepared for growth
Highlight strengths and weaknesses within an organization
Identify trends that could affect an organization’s financial health

People who work as financial analysts have expertise that makes them invaluable to a range of different organizations. They have the opportunity to conduct meaningful work that is crucial in helping organizations achieve their missions.

Anyone who may be considering enrolling in an accounting program can benefit from learning about the work that financial analysts do, how to enter the profession and financial analyst salary levels.

What Do Financial Analysts Do?

The core responsibility of a financial analyst is to examine financial information and explain what that information means. Ultimately, the product of what financial analysts do is a key input into organizational decision-making.

Successful financial analysts know how to present information in ways that their audience will understand. They also know how to use technology to maximize the usefulness of their analysis.

Examples of a financial analyst’s day-to-day duties include the following:

Gathering and examining an organization’s financial information
Building financial models
Making financial forecasts
Following business trends
Making investment recommendations
Advising management regarding financial decisions
Preparing reports conveying the results of their analysis

Financial analysts can also specialize in particular aspects of finance. For example, they can focus on areas such as financial risk, fund management or investment analysis.

Financial Analyst Work Environment and Employers

Financial analysts typically work in office environments for a wide range of employers such as the following:

Banks
Insurance companies
Investment firms
Pension funds
For-profit corporations of all kinds

Requirements to Work as a Financial Analyst

To work as a financial analyst, individuals need to meet certain requirements related to education and experience. The overall requirements for working in the profession are as follows.

1. Earn a Relevant Bachelor’s Degree

Earning a bachelor’s degree in a field such as accounting, finance or business is a great starting point for working in financial analysis. These degrees offer a solid foundation in key subjects such as accounting principles, financial planning, strategic management and risk assessment, which graduates can put to use when working as financial analysts.

2. Gain Experience

Before assuming a financial analyst position, it is important for aspiring financial analysts to get one or two years of experience in entry-level roles in finance. This allows them to continue building their expertise in areas such as financial data analysis, financial forecasting and financial modeling. The real-world experience people gain in these roles prepares them to work as financial analysts.

3. Consider Earning a Certification

While earning a certification is not always a requirement for working as a financial analyst, it is a good way to enhance credentials and demonstrate dedication to the profession.

Financial analysts can choose from a variety of certifications, including the following:

Certified Public Accountant (CPA) through the American Institute of Certified Public Accountants. Studying for the CPA exam and becoming a CPA demonstrates extensive expertise in accounting and knowledge of financial reporting.
Chartered Financial Analyst (CFA) through the CFA Institute. This certification indicates expertise in areas such as valuing assets, using investment tools and managing portfolios.
Financial Modeling & Valuation Analyst (FMVA) certification from the Corporate Finance Institute. FMVA certification is an indication of knowledge in areas such as financial modeling, budgeting and forecasting.
Certified Management Accountant (CMA) through the Institute of Management Accountants. This certification demonstrates expertise in areas such as financial statement analysis, corporate finance, capital investment decisions and financial forecasting.

Financial Analyst Salary and Employment Prospects

Both financial analysts’ salary levels and job prospects are attractive. Here are some details about the role, according to the U.S. Bureau of Labor Statistics (BLS), as of May 2023:

Financial analysts earned a median annual salary of $99,890
Financial analysts in the highest 10 percent of the salary range earned more than $175,840, while those in the lowest 10 percent of the salary range earned less than $60,830

It is important to remember that salaries can vary based on factors such as location, employer, experience and education.

The BLS also projects a 9 percent growth in financial analyst positions between 2023 and 2033 — double the predicted growth rate for all occupations. The BLS attributes the demand for financial analysts to overall growth in economic activity, as well as growth in the amount of financial data that will be available for analysis. In addition, organizations will need the expertise of financial analysts to explore emerging markets and potential investments across the world.

Becoming a Financial Analyst Enables Individuals to Conduct Rewarding Work That Employers Value

While the salaries of financial analysts and their job outlook are both favorable, individuals in this role also have the opportunity to perform meaningful work and make significant contributions to the success of the organizations that employ them. Financial analysts can apply their skills and expertise in a variety of ways to help organizations reach their goals.

People who are interested in pursuing education in a field that could lead to a position in financial analysis can explore the Bachelor of Science in Business Administration in Accounting degree program at App State Online to learn how it can help them achieve their career goals. Offering students the chance to develop expertise in areas such as financial statement analysis, risk assessment and budget management, the program can provide the training to launch a rewarding career.

Find out how you can achieve your professional ambitions with App State Online.

Recommended Readings

Most Important Skills Needed for Accounting

Sources:

American Institute of Certified Public Accountants, “Learn What It Takes to Become a CPA”

American Institute of Certified Public Accountants, Unlock a Dynamic Career: CPA Exam Explained

Association for Financial Professionals, “Boost Your Financial Analysis Skills with These 4 Tips”

Association for Financial Professionals, “Fundamentals of Financial Statement Analysis”

CFA Institute, CFA Program

Corporate Finance Institute, Financial Modeling and Valuation Analyst (FMVA) Certification

Corporate Finance Institute, “What Does a Financial Analyst Do”

Indeed, “Financial Analyst Job Description: Top Duties and Qualifications”