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Seven Skills Required By Financial Analysts

2014/11/14 17:23:00 17

Financial AnalystSkillsFinancial Management

The seven qualities of an outstanding financial analyst are listed below.

Read through their descriptions and think deeply about whether you have them.

Then fill in form 1 to understand your situation.


First, understand the importance.


Good financial analysts can draw conclusions from incomplete information and a feeling - a trained intuition - when and when information is not related.

In some cases, information can be measured, such as the amount of a paction or the percentage of the percentage of budget deviations.

In other cases, information is more intangible, such as the extent to which a financial manager knows the details.

One of my financial analysts interpreted it as the concept of cost vs. return: knowing when you have reached the concept of spending more time on an analysis that will not provide enough revenue to continue.

Accountants and computer programmers sometimes have a hard time pferring to a financial analyst because of their concern for numbers and order.

One of the standard questions I asked when I interviewed for a job interview was "what does importance mean to you?" and told me that the applicant who meant that he tried his best could not get second interviews.


Two, good at using

Electronic form

Analyzing information with database

An excellent financial analyst knows how to use the tools provided by spreadsheets and databases to condense irrelevant data, solve problems and demonstrate information to management.

The full range of experience of using these tools is not as important as knowing their awareness and when to use them, although a strong understanding of PivotTable and query design will be useful.

Also, it is important to know the needs and personal styles of individuals who will report to their work.

Some managers prefer information to a visual form, such as graphics, while others like subordinates to list all their information in detailed financial forms.

Ultimately, it's all about turning data into conclusions.


Three. Understanding management


Concept and apply it to practice

We have learned many valuable concepts in undergraduate and MBA courses, but most financial analysts do not make full use of them in their work.

Good financial analysts remember these concepts and apply them.

For example, analysts responsible for departmental budgets are better at using bias analysis and activity-based cost (ABC) skills.

Those analysts in capital intensive industries are more interested in applying return on investment and breakeven analysis.

Those who develop growth strategies will use marginal contribution and incremental cost analysis.

Statistical methods are usually not used, mainly because we tend to forget them after completing the degree.

Excellent financial analysts find a way to use statistics to locate data styles.

Obviously, a broad road to develop these skills is to become a certified public accountant (CMA) and / or a registered financial controller (CFM).

The exam is ready to update your knowledge and allow you to practice in areas that may be deserted, and to get your actual certificate of excellence.

Four. Successfully get through the company's financial system and informal interpersonal networks to get data and information.

Good financial analysts know their company's financial system - general ledger, sales, inventory and so on - and the limitations of the data they contain, and they can divestiture the data to further analyze them in spreadsheets and databases.

Also, knowing who to ask for help and answers is as important as knowing the financial system.

Informal social networks do not follow the chain of command, so first you may need to make a few phone calls to identify those who can help, but these networks are very effective once they are established.

Because they need very different talents, it is difficult for a person to have both technical and interpersonal skills at the same time, but every skill can be developed through consciousness, concentration and practice.

Five. Have a solid understanding of the company's products, markets and processes.

Good financial analysts can add value by understanding how they relate to business.

Knowing that the company's main source of revenue (products, customers), key computer systems, workflow and geographical distribution will provide insight into the components of revenue and expenditure that should be analyzed.

For example, an analyst who knows 30% of the company's revenue from a product will closely monitor the sales volume of the product and keep an uninterrupted contact with the product manager when making financial forecasts.


Six, take the initiative to improve in every field and have a continuous improvement.


Good financial analysts are always looking for ways to make their work more efficient and pursue training that will enhance their abilities, such as learning to use analytical tools more efficiently.

Good analysts are not satisfied with the current improvement and always want to enhance their own and business, so they seek advice on how to improve the existing process.

For example, in my department, there was once a task that took eight hours per month to complete by hand. Now it is automated and takes two hours.

Seven, when distributing reports or analysis, include insight and problems.

Many financial analysts want to finish the report, remove it from the job list, and then move on to the next task.

Good financial analysts will resist such impetuosity.

Not only will they spend time reviewing the report for accuracy, they will also determine what exactly they want to say about their business.

Then when they submit the analysis, they will pmit any observation and problem to the management.

This process is most effective if they keep the analysis to the report and then reexamine it later in a new perspective.

Good analysts consider their work as analysis rather than reporting.

If you can only do something different, do it according to this quality, because it will have the greatest influence.

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