Financial analyst - who is this? What are the responsibilities

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

In the modern world, such a huge number of professions have appeared that it is sometimes even difficult to imagine what a specialist in a particular field does. And since the most important industry is finance, working with them attracts a large number of university applicants and their graduates. Thus, the profession of "financial analyst" raises many questions about its essence and tasks.

Young but very promising profession

In the modern labor market, a financial analyst is a new specialist, but very necessary. Of course, many unenlightened people are lost at the mention of this profession and do not know if there are differences between an analyst and a trader. It should be noted that with a certain similarity, there are still differences in the content of activities. From the name itself, you can roughly define the main occupations and responsibilities of a financial analyst. It is obvious that he works in the field of finance and analyzes them. When working with finances, a certain clarity andattentiveness. The analysis of the situation should be qualitative. But finance is a very broad field with many subsections, so it is not surprising that a particular section requires the services of a specific specialist. So, a financial analyst can work with the securities market, monitor the performance of a financial company or a certain sector of the economy. It is also possible that the analyst works with the entire economy as a whole. Thus, the work of each specialist is evaluated according to an individual system and is determined by the specifics of the enterprise where he works. Today, the main areas of work remain the stock, currency and commodity markets.

The wolf's feet are being fed. But finances will not be superfluous …

In general, analysis is a complex process that cannot be done in one step. It is best to divide it into parts. The first step is to collect all relevant information, to monitor the market. Next, you have to systematize all the data and identify the main trends. The information obtained allows you to get a general picture of events and identify important changes. A detailed and qualitative analysis of the situation in the financial market is able to predict the further course of events with the issuance of recommendations regarding behavior and further strategies in the market. Therefore, we can summarize and say that the purpose of the work of a financial analyst is to make a forecast, as well as issue recommendations. If the financial analyst fulfills his duties clearly, then, following the instructions prescribed by himalgorithm of actions, you can expect profit.

An important gear in the global machine

Each specialist in a company, both young and developing, and in a stable and growing one, should take its place justifiably. The financial analyst is the engine of the company. His responsibilities include monitoring the situation on the financial markets, analyzing the performance of the company and competitors, regularly advising on financial issues, and compiling daily analytical reviews and reports. A financial analyst is the person who predicts the "weather" in the market and gives his forecasts about where the wind is blowing and how to make sure in case of "rain". Also, an analyst can develop an investment portfolio for his clients with economic recommendations for trading, in addition, create information materials for publication in the media.

What is analytics and how to deal with it?

From the outside it may seem that there is no particular difficulty in this work, but such a point of view is superficial! A financial analyst must perform his duties perfectly, otherwise he does not benefit his company and cannot take his place. Progress in work is demonstrated by the dividends received from his recommendations and forecasts. Working as a financial analyst is primarily associated with certain financial risks that can be avoided if you have the appropriate skills and knowledge.

What a financial professional should knowindustries?

A financial analyst should be distinguished by extensive knowledge of economics and an interest in deepening their knowledge and regular professional development. Also, a specialist must constantly analyze existing changes in the stock and financial markets, having the skills to draw up appropriate financial statements. In addition, it will be useful to be able to consider the economic activity of a particular enterprise and the market in general.

Each company has its own list of minimum requirements that a financial analyst must meet. The minimum program assumes higher education in the speci alty, work experience of at least one year, as well as knowledge of the main financial analysis tools and computer skills at the level of an experienced user. Since the main value of an analyst lies in the accuracy of forecasts, an important component will be the presence of an analytical mindset and a certain financial acumen.

A document fixing the tasks, functions and duties of a specialist

Each enterprise has a financial analyst job description, which must be followed by a hired specialist. So, according to this document, the analyst belongs to the category of specialists who are appointed and removed from their positions by order of the general director of the enterprise. The order must indicate a potential substitute in case of absence of a financial analyst. The analyst must be familiar with the laws and regulations thatregulate production, economic and financial and economic activities, tax, civil, banking and administrative legislation, as well as laws on advertising, accounting and the securities market. In his work, he is guided by the law of the Russian Federation and the charter of the company, as well as the orders of the management and the job description.

The work process of a financial analyst

The functional duties of an analyst are based on an analysis of the organization's activities, its economic side and the work of competitors. The expediency of concluding contracts, the adequacy of financial statements and the available indicators depend on what the final forecast of financial analysts is. The forecast made by them allows assessing the level of financial risk, giving timely recommendations on the time of investment and purchase and sale transactions. In their work, financial analysts use statistical methods of valuation, search for and systematize the necessary information, and resolve operational issues of production activities with third-party institutions and organizations.

What is a financial professional responsible for?

In his competence - the implementation of a qualitative analysis of the available information in compliance with the current instructions, orders and instructions. If, in the process of work, financial analytics assumes its own problems and solutions in the field of administrative, criminal and civil legislation of the Russian Federation,an appropriate level of responsibility is also possible. Causing material damage by a financial analyst is punishable within the limits determined by the labor and civil legislation of the Russian Federation.

Dream profession, or Why is working with finance so attractive

A financial analyst is a professional expert with an economic education and specialization in a particular market sector. As a professional, he must be attentive, responsible, competent in the matter under consideration, have a high reaction rate and analytical thinking. The duties of the analyst include the study of companies issuing shares with the preparation of recommendations for all transactions with securities. His job is not endless seminars reading newspapers and writing reports. If you are thinking about how to become a financial analyst, then it is better to be aware of the state of affairs in advance. Probably, in the first years you will have to work in the database in Excel, summarize the data and systematize them for different periods. You will have to go on business trips and perform routine tasks. In practice, it can be seen that many young professionals cannot stand the monotony and monotony of tasks, so they switch to another job.

What is work?

The popularity of this profession is determined by the proximity to the financial sector and the high social status of a financial analyst when working in a reputable company. The ability to work with large amounts of data, scrupulousness and accuracy allow you to work as hard as possibleeffectively and quickly gain respect in the team. With the proper level of knowledge and experience, a financial analyst becomes the most prominent figure in the company, as he turns into an oracle, each word of which entails an immediate reaction from others and, if events are successful, suggests an increase in the rating of a specialist.

What are the job prospects of a specialist?

A specialist with no work experience, but with a prestigious diploma and additional courses in accounting, can qualify for an initial career salary of $ 800. If you have up to three years of work experience, the payment increases to $ 1,000. More serious experience and additional education add another $ 500 to the salary. Analysts of the extra class receive about 2,000 USD. f. Thus, a higher education is not the last step for the growth of a financial analyst. The bonus will be the received specialized education, master's degree and MBA program. The price of a specialist in Russia is significantly increased by education received abroad, or an internship completed there. But the experience gained in other countries may not be enough if you want to work in Russia. Therefore, before starting your career, it is better to complete an internship at the enterprise. In addition, for any specialist in this field of activity, the presence of eloquence will be an extremely important condition for career growth. Making money investments for most people is too serious a step, involving parting with a significant part of their own savings, so to convincenot everyone can decide on a potential investor. And the rating of trust in the company depends entirely on the analyst. A client who is convinced of the capabilities and power of this specialist will definitely come back to him again, so many enterprises hold seminars and master classes where financial consultants share their knowledge and demonstrate opportunities in practice.