A financial analyst evaluates financial data and provides insights for business decisions. Their primary focus is typically on investments, budgeting and strategy. With the growing demand for data-driven financial decision-making, a career in financial analysis opens opportunities for increased earnings and influence within organizations. This growth is due to businesses’ consistent need to gain a competitive advantage, improve efficiency and respond to rapidly changing market landscapes across sectors.
Education and skill development are vital to a financial analyst’s career path, providing the technical expertise, critical thinking and communication skills professionals need to succeed. Thanks to the highly competitive nature of this data-driven field, continuous learning and professional development are essential for professionals looking to build confidence and skills in adapting to new technologies, regulations and market conditions. The online Bachelor of Science in Business Administration (BSBA) in Accounting program from Youngstown State University (YSU) prepares students for this advancement, and YSU’s online Master of Business Administration (MBA) programs equip them for more advanced roles in the field, turning driven students into confident financial leaders in any field.
What Does a Financial Analyst Do?
A financial analyst’s daily responsibilities can vary based on their industry, but typically involve analyzing financial data, evaluating company performance and market trends, creating financial models, providing forecasts, and advising businesses and clients on financial planning and budgeting.
Core functions include developing budgets and financial projections, preparing reports and presentations for stakeholders to support investment or management decisions, performing statement and market analysis and collaborating with many departments to ensure strategic alignment. These core functions help financial analysts identify risks and opportunities, ultimately enhancing an organization’s internal strength and capacity for growth.
An example of a weekly task list for a financial analyst might look something like this:
- Analyze monthly financial results against the budget to understand performance drivers and key performance indicators (KPIs).
- Gather data and prepare an investor presentation on the company’s quarterly financial performance.
- Develop a financial model for a potential new business initiative to present to senior management for discussion.
- Review industry reports and economic news to stay informed about market trends and potential competition.
- Meet with other departments to discuss budget variances or forecast updates.
- Perform ad-hoc analysis requests from senior management.
What Are Essential Skills for Financial Analysts?
Essential skills for strong financial analysts can be categorized into two areas: technical skills and soft skills. A successful financial analyst possesses a mix of these skills, along with strong mathematical knowledge and sound judgment.
Technical Skills
- Accounting: Solid understanding of accounting principles, including a fundamental knowledge of current accounting practices and regulations
- Excel: High proficiency in Microsoft Excel, crucial for manipulating and analyzing financial data in real time
- Financial modeling: Creating models to forecast financial performance and evaluate investments
- Forecasting and budgeting: The capacity to predict future financial performance and create and manage budgets that reflect those projections
- Research: Strong analytical and quantitative reasoning skills, including the ability to use statistical techniques and software to interpret large datasets
Soft Skills
- Analytical thinking: The ability to address complex financial issues within business, ethical and regulatory frameworks
- Communication: Strong written and verbal communication skills to present financial insights and work with various departments and stakeholders
- Ethics: A strong understanding of ethical responsibilities and a commitment to lifelong learning in an ever-evolving business environment
- Networking: The ability to build a professional network, using internships, student organizations and events that connect you to industry professionals
- Organizational skills: Effective management of resources and workloads to stay organized
What Are the Education Requirements for Financial Analysts?
A bachelor’s degree in a relevant field, including finance, accounting, economics or business, is the entry-level standard for financial analysis. A specialized degree, such as the online BSBA in Accounting from YSU, provides graduates with a high-level understanding of corporate finance and reporting. A solid academic program for financial analysis should include exposure to economics, statistics and investment principles.
Higher education enhances a financial analyst’s credibility and employment opportunities by providing a foundational knowledge base, fostering crucial technical skills and creating valuable professional networks. After completing the BSBA in Accounting online degree at YSU, an advanced degree, such as an MBA, or certifications can further build on this foundation, demonstrating specialized expertise and a passion for the profession.
Certificates and Professional Development
Higher education is often the prerequisite for pursuing some credentials, which can lead to career advancement. MBA graduates may require additional education to qualify for exams. The most common certifications sought out by financial analysts who have completed their higher education include:
- Chartered financial analyst (CFA): A CFA is a globally recognized professional who has demonstrated a high level of expertise in investment analysis and portfolio management. To become a CFA, you need a bachelor’s degree, 4,000 hours of relevant work experience and to pass all three levels of the Certified Financial Analyst (CFA) Exam.
- Certified public accountant (CPA): A CPA typically provides services, such as tax preparation, auditing and financial consulting services. To become a CPA, individuals must meet educational requirements, pass the comprehensive CPA Exam and gain relevant work experience.
- Certified financial manager (CFM): A professional designation for individuals with expertise in financial planning, analysis and control. A CFM certification requires passing three levels of the CFA Exam.
These specialized credentials unlock increased career opportunities for financial analysts, leading to higher earning potential, professional credibility and a competitive advantage in the job market. For individuals aspiring to leadership positions or the C-suite, certifications can accelerate career progression.
Financial Analyst Salary and Job Outlook
According to the U.S. Bureau of Labor Statistics (BLS), the median annual wage for financial analysts was $101,910 in 2024. Entry-level education requirements are typically a bachelor’s degree in a related field. The strongest factors that affect pay include location, education and certification.
Experienced financial analysts have a high earning potential, with many senior roles exceeding $180,000 annually and top executives, including the chief financial officer (CFO), earning millions. Expanding the view to include corporate finance, investment and consulting sectors, the job growth outlook for this field averages a 6% increase projection by 2034.
How Does an MBA Pathway Support Career Growth?
The online MBA pathways from YSU offer a diverse range of specialized courses depending on your career focus. For example, the online MBA with a Specialization in Organizational Leadership degree includes courses like Industrial Economics and Corporate Financial Management, coupled with leadership-focused courses like Managing Organization Talent and Essentials of Leadership Coaching. This combination instills a sense of leadership skills, effective communication and strategic planning abilities, making graduates assets to organizations across sectors.
Higher education allows professionals to expand their networking and professional development opportunities, preparing financial analysts for management, director and executive-level roles. By earning a solid foundation in business and specialized accounting skills, professionals gain access to increased earning potential, job stability and advancement opportunities. YSU graduates with an MBA are well-prepared for a financial analyst career, benefiting from a strong foundation in core economic principles, valuable analytical skills and vital leadership abilities.
Take the Next Step to Become a Financial Analyst
An MBA from YSU provides a flexible and affordable pathway to various roles across different industries, equipping graduates with transferable skills that high-performing organizations value. The program’s rigorous curriculum equips students with the knowledge they need to analyze, assess and understand business finances, providing a solid base for advanced roles.
With rolling start dates, an easy admissions process and a fully online learning platform, students don’t have to put their professional or personal life on hold to advance their career. Explore details for YSU’s online BSBA – Accounting program and online MBA programs, and apply today to jumpstart your career in financial analysis.
