Finance is a critical part of our day to day life. Whether we are fulfilling our professional commitments or personal, finance finds its way into it. The importance of finance in a company is to make sure the business operates smoothly and to secure funds for the long-term goal. Finance professional’s play a vital role in any business. They analyse revenue and expenses in order to make an effective use of the company’s capital. They also provide advice to the management about project investment, planning the company’s budget and structure acquisitions to help companies grow.
Now, let us look at the common areas/ positions of Finance: Finance Analyst, Finance Executive, Chief Financial Officer, Finance Manager, Risk Analyst, Finance Director.
Among all the Financial positions, “Financial Analyst” is the most popular career path. A financial analyst can work in junior as well as senior position within a company.
Who is a Financial Analyst?
A financial analyst runs a business on the basis of analysis. Being an analyst, they interpret data and recommend strategic decisions to the management on the basis of the data collected by them. They also create a financial model to predict the outcome of the business decisions. The role of a financial analyst differs depending where it works. For an example within an investment bank, a financial analyst focuses more on business collaboration. The day to day activities of a financial analyst depends on the company where he or she chooses to work. A financial analyst needs to be aware of the latest improvements and prepare financial models considering the developments in order to predict the present and future economic conditions.
Education required to become a Financial Analyst
A minimum bachelor degree preferably in finance is required for a financial analyst. One needs to have a strong understanding on subjects like: accounting, economics and statistics. Analyst who wants to earn a lucrative package and wants to enjoy greater opportunities might consider pursuing a professional accounting certification like : MBA, CFA or the US CMA. Advanced learning makes them more potential and mobile.
To become a successful financial analyst, one has to be motivated and must have confidence in their judgment.
Financial Analyst: Career Path
Working as a financial analyst is a very exciting career. As analysts they need to perform detailed financial modelling and work closely with the CFO to execute effective decision-making. A financial analyst enjoys faster growth than an average finance professional.
A career as a financial analyst offers job security, potential to earn more and opportunity to define the finance industry. The average financial analyst pay scale starts from INR 5 lakhs per annum plus perks and other benefits. With experience, when an analyst moves to a senior position the pay scale increases to INR 8 – 25 lakhs .