Financial analysts help organisations make money decisions: whether to invest in a project, buy a stock, lend to a company or cut a budget. It’s one of the most common entry points into finance, and the skills you build (modelling, analysis and clear communication) transfer to almost every senior finance role.
What does a financial analyst do?
A typical week might include:
- building and updating financial models in Excel,
- analysing financial statements and industry data,
- preparing budgets, forecasts and variance reports,
- writing recommendations and presenting them to managers or clients,
- tracking market news, economic trends and competitors.
Types of financial analyst
| Type | Where they work | Focus |
|---|---|---|
| Corporate / FP&A analyst | Companies of all sizes | Budgets, forecasts, performance reporting |
| Equity research analyst | Banks, brokerages | Researching listed companies, stock ratings |
| Buy-side investment analyst | Asset managers, hedge funds, pension funds | Investment recommendations for portfolios |
| Credit analyst | Banks, lenders, rating agencies | Assessing whether borrowers can repay |
| Risk analyst | Banks, insurers, asset managers | Measuring and limiting financial risk |
| Investment banking analyst | Investment banks | Valuation and deal support |
Each type needs the same core skills but leads to different career paths and pay levels.
Skills you need
Technical
- Accounting: reading the income statement, balance sheet and cash flow statement, and how they link.
- Financial modelling and valuation: three-statement models, DCF, comparable companies.
- Excel: advanced formulas, pivot tables, scenario analysis.
- Data tools: SQL, Python, Power BI or Tableau are increasingly expected.
Soft skills
- Clear writing and presentation: your analysis is only useful if decision-makers understand it.
- Attention to detail.
- Curiosity and scepticism about numbers.
Education and qualifications
Most employers want a bachelor’s degree in finance, accounting, economics, maths or a related subject, though strong candidates from other degrees are hired too. Professional qualifications can boost your career:
- CFA (Chartered Financial Analyst) for investment roles,
- CPA, ACCA or CIMA for corporate finance and accounting-heavy roles,
- FRM for risk.
Some roles, particularly selling securities, also require licences such as FINRA exams in the U.S.
Pay and outlook
Financial analysts earned a median of $103,570 in May 2025, and BLS projects 7% employment growth from 2025 to 2035, much faster than average (BLS). Pay is highest at securities and investment firms. See our full financial analyst salary guide.
Career path
A typical progression: analyst → senior analyst → finance manager or associate → director / portfolio manager → CFO or head of investments. Financial managers earned a median of $166,570 in May 2025.
Analysts also move sideways into private equity, corporate development, consulting, treasury or investment banking.
How to become a financial analyst
- Study the fundamentals: accounting and corporate finance, even if your degree is in another subject.
- Learn Excel modelling: build a three-statement model of a real company from its annual report.
- Get experience: internships, finance clubs, investment competitions, or a junior finance role.
- Write a stock pitch or company analysis you can discuss in interviews.
- Prepare for technical interviews on accounting, valuation and recent market events.
FAQ
Is financial analyst a good career?
Yes for people who like numbers and problem-solving. It pays well, is growing and opens many doors.
Do financial analysts work long hours?
Corporate analysts usually work regular hours with busier month-ends; investment banking analysts work much longer hours.
Can I become a financial analyst without a finance degree?
Yes, if you can show accounting and modelling skills through courses, projects or qualifications.
