Have you ever wondered what it takes to get hired as a financial analyst? A degree in accounting or finance is a great start, but many people are turning towards finance as a lucrative career choice. That’s why I put together this list of financial analyst interview questions for you to prepare for your future interview.
What is a financial analyst? They are trained financial analysts that are responsible for analyzing and providing analysis and recommendations to upper management about how the company can improve its financial performance. Typically, financial analysts have a bachelor’s degree and often begin working in a corporate finance department. In most case the salary range is around starting point of around $40k per year.
What do they analyze? Financial analysts are typically responsible for analyzing the financial statements of a company in regards to day-to-day business activities. They will review and gather data, usually in the form of reports from internal or external sources, and then make recommendations to upper management as to how the company can improve its financial performance. Analyzing financial statements is very similar to that of a stock trader or market researcher. They try to determine the short, medium and long term market trends and how they affect a company’s financials.
How much do they earn? Salaries are based on a number of factors, including experience and field of expertise. Usually financial analysts will be specialized in one of the four financial areas: investor relations, economics, banking, or information technology. The more specific to their area of expertise, the higher the pay they will earn. In addition, they may also receive overtime or commissions for their recommendations. Typically, financial analysts with more experience earn more money.
What skills do they need? In order to succeed as a financial analyst, a person must be detail oriented, analytical, fluent in at least two languages (English and either Spanish or Portuguese), and have experience in a relevant field such as accounting or economics. Some also prefer to have additional education, particularly in psychology, in order to cope with changes in the rapidly changing world of finance. Some specialize in one particular industry such as financial advising or market research, while others choose to specialize in a mix of all different sectors.
What are the benefits? A good financial analyst can help businesses achieve greater financial success by providing sound advice. This advice can be used by decision makers in decision making, corporate personnel, management, and shareholders. Good analysts are great at communicating with a wide range of people in various settings. They can create a competitive advantage for themselves by applying best practices within the firm.
How do you find out about the salary range of a financial professional? You can start by asking your friends, colleagues, or other professionals within your industry about what they make. This is by far the best way to get salary information. Ask them to give you a range of figures so that you can do some comparisons between different financial professionals in your area. Pay attention to the median salary and take this figure as the starting point for your search. Often this number is the best indicator of the kind of earnings potential, a financial analyst can expect in their chosen career.
The starting salaries for financial analysts are not set in stone. Different firms will offer different starting salaries, but the important thing is to know that financial analysts are consistently earning a lot of money. As technology and globalization continue to drive the economy, this career path will only continue to grow in value. As a result, it will not be long before financial analysts are among the most highly sought after professionals in our world.