Job roles and responsibilities of a Financial Analyst
What Are The Roles And Responsibilites Of A Financial Analyst?
Finance is one of the key departments of an organization covering a range of activities such as timely and accurate financial information in the form of various financial reports to assist management in the process of strategic decision making. The below article focuses on job responsibilities and roles of a financial analyst
The financial information in turn forms a basis for financial analysis. In this way, financial analyst plays a vital role in a business organization. In fact, a financial analyst performs various job roles and responsibilities. Below are some major duties of a financial analyst.
Financial analyst has a key role in determining the company’s current value and future business prospects. Job duties of a financial analyst involve analyzing financial information to produce forecasts of a business that aids greatly in making investment decisions. He needs to interpret data influencing investment decisions, so that he may offer reliable and accurate information to management and recommend course of actions.
An analyst, in order to enable management in making various decisions accordingly, involves in creating various spreadsheets, making analysis, drawing charts and graphs, so that the financial trends may be illustrated as well as clear and understandable information may be presented.
In addition, he holds the responsibility of developing several models in order to predict business opportunities in terms of investments leading to maximizing profits and minimizing the chances that pose risks on business.
One of the most important job activities of a financial analyst is, while reviewing and presenting the financial information to management, to analyze trends in terms of revenues and expenses of a business entity that consequently facilitate management to take necessary steps to increase profitability and decrease and control the expenses. In view of the fact that the action plans may be implemented effectively and efficiently, the task of financial analyst also necessitates preparing budgets while analyzing business plans and making financial analysis.
A career as a financial analyst is a challenging one that demands sound knowledge and strong skills of oral and written communication. It involves critical thinking and investigating various problems associated with a business entity. It requires hard work, and heavy responsibility; nevertheless, a financial analyst gains good financial rewards. Financial analysts come from various fields of study, such as, business, accounting, economics, mathematics, computer science and engineering. Possessing an MBA in finance will be an added value to the profession leading one to make career advancement.