what is a finance analyst?
opportunities. You use industry knowledge, market trends and financial data to find the best strategy for continued growth. Your job involves analysing economic trends, financial information and business news.
As a finance analyst, you work in investment companies or financial institutions like banks. Some businesses also need internal finance analysts to monitor their investment strategies and minimise losses. Aside from working in finance sectors, you can also work in technology, health and mining companies.
Since you build financial models for data analysis and forecasting, proficiency in various statistical software for analysis and portfolio building is important. The tools help you keep track of past and present financial information and use predictive models to determine if an investment deal is viable.
finance analyst job description
As a finance analyst, you can work as a buy-side analyst. Your job entails developing investment strategies for institutional investors like hedge funds, insurance companies and mutual funds. Finance analysts also work on the sell side, guiding individuals or financial service agents on the best-performing stocks, bonds and investments. Switching between buyer-side and seller-side clients is possible since the roles and prediction models are similar. However, buyer-side finance analysts have broader responsibilities and experience higher expectations of accuracy.finance analyst jobs
average salary of a finance analyst
The median remuneration package of a finance analyst is $100,000 annually in Australia. The salaries usually fluctuate based on the years of experience and qualifications. For instance, junior-level finance analysts take home $90,000 annually due to their minimal experience and qualifications. When you improve your experience and qualifications, your earnings will likely increase to over $110,000 yearly.
how to increase the salary of a finance analyst
The salary of finance analysts fluctuates depending on your qualifications and experience. When you have minimal experience, you cannot perform complex duties or advise on some investment decisions. Your remuneration package will gradually increase as you improve your skills and hone your financial planning expertise.
Your level of qualification also influences your earnings. A Certified Practising Accountant (CPA) certification gives your wage packet an enormous boost. Other certifications like a Certified Financial Analyst improve your remuneration prospects. Your location also influences your earnings. For instance, working in metro areas and regions like Parramatta NSW and Perth WA pays more than working in Melbourne and North Sydney.
Want to know what you will earn as a finance analyst? Check out what you are worth with our salary checker.
types of finance analysts
Some types of finance analysts include:
- investment banking analysts: your responsibility as an investment banking analyst is to help companies meet their financial goals by looking for investment opportunities. You also create economic models and complete evaluations to determine the performance of current investments.
- equity research analysts: your job is to oversee investment portfolios for a group of companies in a particular industry. You can work for buy-side and sell-side firms to help them decide the securities to hold and sell.
- treasury analysts: as a treasury analyst, you manage finances in various government agencies. You oversee investment income, cash flow and asset levels. You also advise on ways to improve financial health.
- corporate development analysts: your job is to optimise business processes and enhance income from business operations. You assess operations and expenses and develop better strategies.
working as a finance analyst
Working as a finance analyst is an exciting role involving analysing investment portfolios and minimising risks. Let's explore finance analysts' specific duties, job outlook and work schedules.
education and skills
Some of the educational qualifications you require to become a finance analyst include:
- bachelor's degree: to become a finance analyst, complete a bachelor's degree in finance, business, commerce, accounting or economics. The three-year degree courses equip you with broad financial knowledge. When you complete the degree, find an internship or entry-level role to improve your skills.
- certifications: most employers in Australia prefer finance analysts with CPA or Chartered Accountant qualifications. Alternatively, pursue postgraduate qualifications, like a master's in business administration, to improve your career prospects.
skills and competencies
Some of the qualities that will help you excel as a finance analyst include:
- research skills: your job involves mining data from various sources for financial analysis. Research skills help you find historical data from company records and macroeconomic data from industry sources. With sufficient information, you can make predictions based on your data analysis
- attention to detail: being detail-oriented helps you identify market trends and make accurate predictions. Attentiveness to detail is crucial for making insightful conclusions based on market changes.
- analytical skills: as a finance analyst, you evaluate masses of data to draw accurate conclusions. You need analytical skills to ask the right questions, reach the correct conclusions and discern the best solutions for your clients.
- maths skills: it is crucial to be good at maths and numbers since you handle complex calculations in financial modelling. Sometimes you use equations to complete data analysis. Maths skills also help you formulate financial models like charts and graphs.
- communication skills: you need communication skills to explain complex financial jargon to clients and investors. Communication and people skills also help you maintain productive relationships with stakeholders.
FAQs about working as a finance analyst
Here are the most asked questions about working as a finance analyst: