As much as businesses are driven by the management's desire to grow and deliver impeccable services, the role of a financial analyst is significant for the success of any organization. If you are planning to pursue a career in the financial analyst niche, first of all, congratulations and secondly, you are at the right place. How to become a financial analyst? Seeking an answer to this question will take you to the mayhem of career guidance and self-improvement but no one explains what you need to do periodically to reach your ultimate goal. We have curated all the important steps you should follow to become a successful financial analyst. Without further ado, let's start your journey to becoming a financial analyst.
Who is a Financial Analyst?
The first step in learning about financial analysis is recognizing the role of a financial analyst in a business or organization. A financial analyst has the primary job to collect, monitor, and evaluate information to make forecasts and recommendations to the management. These recommendations can be anything related to investing in securities, buying and selling a business, equity analysis, or as simple as suggesting the best marketing techniques. A financial analyst should be able to suggest the best course of action for the success of the business.
Required education and skills to become a financial analyst.
The educational qualifications required to become a financial analyst are less rigid and well-defined compared to other high-paying career options.
A bachelor's degree in the fields of finance, economics, accounting, math, or statistics will make you eligible to become a financial analyst. Apart from the bachelor's degree, there are certain skill sets desired by the employees for the financial analyst role.
You should focus on improving these skill sets to become a successful financial analyst. Checkout This FMVA Review By CFI To Get A Better Idea.
- Quantitative Skills: You will be dealing with reports and models for most of the time as a financial analyst and having an extraordinary quantitative skill will help you handle the game of numbers with ease.
- Logical Aptitude: You should be able to make logical decisions based on the reports and these decisions will decide the fate of the business in the long run. Improve your logical aptitude skill to succeed in the financial analyst career.
- Problem Solving: Analyzing the data and making decisions based on the outputs is nothing less than solving a complicated problem and you will be doing this every day as a financial analyst. A sharp problem-solving skill is desired from a Financial Analyst by the employer.
- Financial Mindfulness: A keen interest in the financial world is a necessary skill for every financial analyst. Stay updated with the latest updates and innovative ideas in the financial niche to stay one step ahead in your job.
- Computer Excellence: You will be dealing with databases and complicated software most of the time and excel sheets and presentations will become a part of your daily routine, Excellent system proficiency will help you to succeed in the financial analyst role.
- Communication and Interpersonal Skills: Soft skills are significant to excel in any career and the financial analyst role needs excellent interpersonal skills. You should be able to communicate your analysis and recommendations to the management and your communication skills will play a crucial role here.
Sharpen the above skillsets before you advance towards the Financial Analyst career and you will be able to dodge most of the challenges in your exciting journey.
Important Steps to become Financial Analyst
Once you understand the role of a Financial Analyst and the key skill sets required to succeed in the career, it's time to focus on the periodic steps you need to focus on. We have simplified these key steps so that you can focus on what matters the most.
Earn your Bachelor's Degree in the Financial Field
This is the most crucial step towards becoming a financial analyst. Anything less than a Bachelor's Degree will not be enough to apply for a financial analyst role. Even degree holders from fields like engineering and physics can pursue a career in the Financial Analyst niche if they have strong knowledge and desire about finance and economics.
Find and complete an internship
Pursuing a financial analyst internship will help you understand what to expect from the role of a financial analyst. This is not a mandatory step but we strongly recommend completing an internship to improve your skills and knowledge.
Find a job and build on the job experience.
After graduation and internship, you can begin your career by working in accounting, investment, or banking firms. Junior financial analyst and entry-level financial analyst roles are suitable for fresh graduates. Once you launch your career in the relevant field, you can build work experience in the financial industry and work your way up.
Get additional certifications and licensing
Obtaining licenses and certifications are a crucial step in advancing your financial analyst career. Depending on your role and organization, there are various certifications you can ace upon. Let's have a look at the most important certifications for a financial analyst.
- Chartered Financial Analyst (CFA): This is the most popular certification program for the financial analyst role. This certification will give a solid foundation to your career. A minimum of four years of qualified work experience is required for this credential.
- Financial Industry Regulatory Authority (FINRA): FINRA Inc. is a private corporation that acts as a self-regulatory organization in the United States. This non-governmental organization provides various certifications to the financial analyst such as Securities Industry Essentials (SIE) and Series 7 exam. Most of the top employers prefer financial analysts who are already FINRA-licensed.
The Bureau of Labor Statistics (BLS) suggests that candidates with certifications improve their chances for professional advancement.
Obtain a Master's Degree
Fortify your resume by adding a master's degree in finance or accounting field. This additional degree will increase your exposure and interest from top employers looking for senior financial analyst candidates. MBA graduates also hold a fair chance of getting through the competition to become top-level financial analysts
The Financial Analyst role is an admirable career option and has a wide scope of advancement in the coming decades. The financial analyst career provides invaluable growth opportunities and is one of the highest-paying jobs in the finance industry. We believe the above steps and tips will help you to succeed in the journey to become a financial analyst.