What Does a Finance Analyst Do?

Finance analysts provide advice for business investments and overall financial strategies. Utilizing economic trends, financial data and business news as sources, they make recommendations based on these indicators.

These experts also gather and analyze historical information to make forecasts and models, providing more informed decisions and helping businesses grow. It is an indispensable skill in any organization.

Basic duties

Finance analysts are responsible for performing numerous research tasks to make informed business recommendations, including monitoring macroeconomic trends and reviewing company balance sheets, as well as creating financial models to predict future performance. Depending on their job duties, some may even need a license from Financial Industry Regulatory Authority (FINRA) in order to sell financial products.

Financial analysts will typically work in collaboration with accounting, budgeting, and analysis teams to produce reports. Additionally, they must monitor financial forecasts and assist management with financial planning and budgeting activities. A financial analyst must possess knowledge of Generally Accepted Accounting Principles as well as automated financial and accounting reporting systems.

This position requires strong verbal and written communication skills, including effective engagement with client key stakeholders, marketing ideas for firm services and patient billing issues (i.e. estimating out-of-pocket expenses, assessing eligibility for financial aid programs and creating documents to assist patients with payment plans/options).

Working conditions

Financial analysts typically work for large financial companies such as hedge funds, money management firms, pension funds and insurance providers. Nonprofit groups with endowments also sometimes employ these professionals, who use financial analysis software to spot investment trends and advise where best to place company stock or other assets. Financial analysts may also assess corporate practices like marketing spending.

Professional consultants must remain abreast of business news, economic trends and company projections. In addition, they must assemble and organize complex data in order to form models that predict future performance of companies they work for and present these findings to clients and higher-ups.

Professionals in these professions typically work long hours. Additionally, they must travel extensively while wearing appropriate business attire; keep up with industry trends; attend social events such as conferences and meetings; work under pressure while meeting strict deadlines; those able to manage these conditions can advance quickly in their careers.

Education requirements

Aspiring financial analysts require at least a bachelor’s degree in accounting, finance, business or another relevant subject. Employers may require CPA certification as well. Many colleges provide financial analyst courses so students can gain practical experience as well as academic credits through these classes.

Senior financial analyst roles typically place greater emphasis on communicating directly with high-ranking client contacts and speaking directly to company management, and are best suited for individuals who possess strong communication and interpersonal skills.

Financial analysts must possess an in-depth knowledge of spreadsheet software like Microsoft Excel to develop models to predict the performance of financial investments and business decisions, aggregate large amounts of data and take into account factors like market trends or past transactions of similar nature; additionally they should have knowledge of industry legal regulations and procedures.


Financial analysts enjoy an extremely lucrative salary, especially those just starting out. More experienced analysts can make up to $100,000 annually. Financial analysts may receive both a base salary and bonus payments which depend on financial growth.

Insurance, securities firms, hedge funds, private equity companies and investment banks often hire financial analysts. They must be familiar with industry terminology as well as having the capability of analyzing, interpreting and creating financial models – being able to present findings to various stakeholders as necessary.

Professionals working as corporate liaisons may be asked to travel for business meetings and must maintain relationships with internal departments to collect data and keep up with industry trends, which are always changing. Although this job takes much dedication and flexibility, its rewards can be immense if willing to put in the necessary work – this profession provides excellent compensation while offering challenging work environments.

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