what is a finance analyst?
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.
find jobsaverage salary of a finance analyst
The median remuneration package of a finance analyst is between $85,000 to $105,000 annually in New Zealand. The salaries usually fluctuate based on the years of experience and qualifications.
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.
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.
-
duties and responsibilities
Specific roles depend on the industry and company you work for, but typical duties include:
- organising information: your job as a finance analyst begins with gathering information from historical financial reports, macroeconomic data, stock price information and accounting data from ledgers. You organise the information in databases or spreadsheets, clean up the data and arrange it in a format that makes sense. It is important to categorise the data and add formulas to ensure it has consistent formatting that is easy to understand.
- analysing financial results: after cleaning up the data, you analyse the historical information using ratios and metrics to determine patterns. Your job is to identify trends and compare the performance with other companies in the industry. From the analysis, you can evaluate the company's value and find ways to improve income from investments.
- forecasting and making projections: your analysis reveals the company's performance predictions. You develop various financial models to help you make projections and predict the company's future performance. If you are analysing the viability of investment opportunities, the financial models help you make investment decisions.
- developing recommendations: you provide recommendations on ways to improve business operations based on your projections. For instance, you list viable investment opportunities and recommend ways to improve revenue and market share. Aside from writing reports, you make presentations to clients and investors.
- risk analysis: you can specialise in risk analysis and assess potential risks in a company's financial strategy. You help the managers identify sources of loss and minimise the risks involved in financial investments to increase profits.
-
work environment
Finance analysts work in financial institutions like banks, insurance companies and investment firms as insurance consultants. In financial companies, you advise on investment opportunities and help firms grow. Your work is primarily office-based since you spend most of the time analysing data and building financial models. In government institutions, you may help criminal investigation departments to identify fraud.
-
who are your colleagues?
Depending on your employer and the industry you work in, your colleagues might include accountants, finance managers and management accountants. You might also be working in close proximity to data analysts and investment consultants, business analysts, as well as other specialists that could include, but not be limited to, financial controllers, financial planners, financial accountants, advisors and finance assistants.
-
work schedule
Finance analysts work regular 9 am to 5 pm work hours. Although your work schedule takes 40 hours a week, you occasionally work extra hours to meet deadlines. Sometimes, your clients meet you outside work hours to discuss investment opportunities. Meeting clients also requires travelling to various business premises and attending investment conferences. If you work for a multinational investment firm, overseas travel will be part of your job. Most finance analysts work full-time, but you can find part-time opportunities.
-
job outlook
As a finance analyst, you specialise in portfolio management or fund management. Alternatively, become a risk or ratings analyst and focus on helping companies minimise costs. When you are a junior finance analyst, you can work towards becoming a senior finance analyst who oversees larger projects and assists company executives. You can progress to a finance manager position from the senior finance analyst position before becoming the finance director or chief finance officer. A finance analyst job also has self-employment opportunities, but you'll need a high level of expertise.
-
advantages of finding a finance analyst job through randstad
Finding your finance analyst job through Randstad provides important advantages such as:
- a wide variety of training and development opportunities
- an experienced contact person to provide help if needed
- a range of opportunities in your area
- get paid weekly or monthly, depending on the job
- temporary and permanent contracts
Want a permanent contract? A temporary job as a finance analyst is often a stepping stone to an attractive permanent job. Every year, thousands of people earn a permanent contract with great employers thanks to a temporary job found through Randstad. What's more, many companies recruit their permanent employees through Randstad too.
education and skills
Some of the educational qualifications you require to become a finance analyst.
Qualifications include:
- complete a degree from an approved university
- complete three years of professional experience
- complete qualifications set by CA ANZ or CPA Australia.
- Chartered Accountants Australia New Zealand website - information on becoming a chartered accountant
- CPA Australia website - information about becoming a certified practicing accountant
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:
-
what is a finance analyst?
Finance analysts use their financial knowledge to analyse various investments' financial performance. They review financial data and advise individuals or businesses on investments with promising returns. They are also experts in assessing the performance of bonds and stocks.
-
what does a financial analyst earn in New Zealand?
The remuneration package of a finance analyst is between $85,000 to $105,000 annually in New Zealand. The salaries usually fluctuate based on the years of experience and qualifications.
-
what is the difference between a finance analyst and an accountant?
A finance analyst reviews past and future trends or analyses risks to determine the viability of an investment. They also determine the performance of bonds and stocks and advise businesses on the best time to buy or sell. An accountant reviews a company's financial data daily and creates the reports used by finance analysts.
-
what qualifications do you require to become a finance analyst?
You require a bachelor's degree in a business or finance-related field to become a finance analyst. Consider earning a qualification in CPA or CA ANZ to improve your career prospects.
-
how do I apply for a finance analyst vacancy?
Applying for a finance analyst job is easy: create a Randstad profile and search our finance analyst job offers. Then simply send us your CV and cover letter. Need help with your application? Check out all our job search tips here.
