To those outside the finance industry, ‘financial analyst’ sounds like one of those job titles that’s intentionally ambiguous. Something that doesn’t give much away about what the person actually does on a day-to-day basis. It’s not quite up there with ‘Chief Happiness Officer’ or ‘rockstar programmer’, but to those outside this sector, it may as well be.
The truth is, it’s broad for a reason. Financial analysts do an incredibly wide range of work that basically boils down to looking at financial data to identify opportunities or measure outcomes. Financial analysis spans dozens of subspecialties, across countless different industries and organisations, from banking to healthcare.
Within the finance industry, there are two main kinds of analysts; buy side, and sell side. ‘Buy side’ means the analyst works for a firm that buys securities, like a hedge fund or a super fund. Their work includes things like evaluating potential investments and see whether they align with the fund or client’s strategy. ‘Sell side’ means the analyst works for a firm that facilitates selling securities, like an investment bank or equity research platform. Their work includes responsibilities such as helping clients market and sell securities, using advanced financial modelling to predict what the market will think they’re worth.
Outside the finance industry, there are tons of different pathways to take. For example, analysts working in fintech (financial technology) team up with product managers and UI/UX experts to help build and maintain banking apps, transaction platforms, and more. In the compliance and legal fields, financial analysts work with forensic accountants and law enforcement to help investigate and prosecute crimes, ranging from money laundering to human trafficking.
This huge variety of work is just part of the reason that becoming a financial analyst is such a popular career path.
- Average salary of $111,086
- Attractive graduate programs, and over 1,000 entry-level vacancies across Australia (at time of writing)
- Positive job outlook, in line with growing demand for data analysis skills
If you’re considering a total career change, or just a shift away from a related path, read on. In this article, you’ll learn more about what it takes to get qualified and secure your first gig.
The Daily Duties of a Financial Analyst
So what’s the day-today like for the average analyst? Notwithstanding specialisations, there are a few tasks and responsibilities that are relatively consistent.
Reviewing data and trends
One of the key daily duties is reviewing data and trends. This means diving into various transaction data sets, financial reports, sales figures, and market research to find answers to critical questions. Analysts look for patterns, such as rising costs or increasing sales, to help identify potential problems or opportunities. This part of the job requires critical thinking and can lead to significant insights that influence the rest of the organisation.
Preparing reports and presentations
Another important responsibility is preparing reports and presentations. Analysts take the information gathered from their data review and organise it into clear, concise reports that highlight key findings. These reports often include graphs and charts to make the data more understandable.
Presentations are also a big part of the role, where analysts share their insights with colleagues and management. It’s important for analysts to be able to communicate the importance and urgency of their discoveries during these presentations; this is one of the main soft skills of the job (more on that later).
Meetings and travel
Meetings and travel are also regular aspects of a financial analyst’s job. For example, analysts often meet with different departments to discuss financial performance and strategy. These meetings can be engaging, as they involve collaboration and brainstorming with team members. Occasionally, analysts may need to travel for conferences, or to meet with clients and stakeholders. Travelling provides opportunities to network, learn from industry experts, and gain new perspectives that can enhance their work.
What it’s really like to be a financial analyst?
Industry stats and literal job descriptions can only tell you so much. The overall experience of the job is what’s going to help you work out whether it’s right for you.
Over on Reddit , anonymous analysts have given their (unfiltered) opinions on what it’s like to work as an analyst.
“Totally depends on the company. The smaller the org the more closely this will look like an accounting position (…). The larger the org the more likely you’ll be doing things like executing on standard reporting, variance analyses, forecasting, and a variety of ad hoc analyses likely to evaluate investments in resources or assets.” (1)
“I’m a Senior Financial Analyst for a startup Franchisor in the beauty industry. (…) Start ups are an extremely great place to cut your teeth, in my opinion, because you get huge exposure to anything and everything (like it or not!) I work with the founders, venture capital partners, CEO, CFO, CMO, CIO, legal, ops, and supply chain. This is the best way to discover your hidden talents!” (2)
“I’m a pricing analyst (…) I solve things like “how much rate should we change customers?”, “how much should it cost to service the accounts?”, and “where can we grow profitably?”. (3)
“My day-to-day includes updating financial models/dashboards I’ve built from scratch, sending out reports, controlling budgets & accounting entries, and provide insights to the management or the commercial team. Mostly data crunching.” (4)
How to Become a Financial Analyst in Australia
Becoming a financial analyst in Australia typically involves a structured career pathway that includes education, certification, networking, and relevant work experience.
Education
To start, aspiring financial analysts usually pursue a Bachelor’s degree in fields such as Finance, Accounting, Business, or Economics. These programs provide foundational knowledge in financial principles, investment strategies, and economic theory. Some universities also offer specialised degrees in Financial Analysis or similar disciplines (though usually at graduate level, like a Master of Financial Analysis), which can be particularly beneficial.
If you’re looking for a way to work out whether finance is for you, and you don’t want to waste time or commit to a three- or four-year program, a Diploma of Accounting could be a good head start for you.
- Certification
After completing a degree, many analysts consider obtaining professional certifications to enhance their qualifications. In Australia, the Chartered Financial Analyst (CFA[EM6] ) designation is highly regarded. The CFA program focuses on investment management and financial analysis, requiring candidates to pass three levels of exams. Another option is the Certified Practicing Accountant (CPA) designation, which emphasises accounting skills relevant to financial analysis. Both certifications require a combination of education, work experience, and passing rigorous exams, but they can significantly boost an analyst’s credibility and career prospects. - Networking
Networking plays a crucial role in advancing a career as a financial analyst. Joining professional organisations such as the Financial Services Institute of Australasia (FINSIA) or the CFA Society Australia can provide valuable networking opportunities. These organisations often host events, seminars, and workshops where analysts can connect with industry professionals, share insights, and learn about job openings. - Internship/experience
Gaining practical experience through internships or entry-level positions is essential for aspiring financial analysts. While it’s less common in Australia than other places around the world (like the US), many universities offer internship programs, allowing students to apply their classroom knowledge in real-world settings. Internships at banks, investment firms, or corporate finance departments can provide hands-on experience and help build a professional network.
Graduate programs at large banks, financial firms and government departments are a common way for finance and accounting graduates to gain experience in a variety of financial analysis functions. Additionally, seeking part-time roles or work experience in finance-related positions while studying can be beneficial, as it demonstrates commitment and provides practical skills that employers value. This is also a great way to pick up skills in specific software packages (more on that next).
Essential Skills and Experience
To succeed as a financial analyst, a combination of technical skills, soft skills, and technology skills is essential.
Generally, on the technical side, a strong understanding of financial analysis is crucial, including the ability to interpret financial statements, ratios, and metrics to assess a company’s financial health. Analysts need great quantitative skills, as they often engage in complex calculations and financial modelling. Familiarity with market trends and economic indicators is also vital for making informed recommendations. Skills in reporting and forecasting help with clear communication of findings to stakeholders.
In terms of soft skills, critical thinking is key. Analysts need to examine and reframe information, evaluate options, and solve complex problems. Effective communication skills are equally important; analysts must be able to present financial insights clearly to both technical and non-technical audiences through written reports and presentations. Attention to detail is another must-have. Strong time management skills help analysts juggle multiple projects and meet deadlines; despite the stereotypes, it’s not always about just putting in the long hours!
Technology skills play a big part too. Proficiency in Microsoft Excel is a must. Advanced skills in functions, pivot tables, and macros being particularly valuable for data analysis and financial modelling. Familiarity with financial analysis software like Bloomberg and FactSet, commonly used in the Australian market, enhances an analyst’s ability to gather and analyse data efficiently.
On the communication and presentation side, knowledge of data visualisation tools such as Tableau or Power BI allows analysts to present complex information in a visually appealing way, making it easier for stakeholders to understand. Basic knowledge of database management and SQL is also helpful for retrieving and manipulating large datasets.
Altogether, these skills empower financial analysts to make informed recommendations, and contribute to their team’s success – no matter the mission.
Looking Ahead
Embarking on a career as a financial analyst is an exciting journey filled with opportunities for growth and success. If you’re ready to take the next step and equip yourself with the skills and knowledge needed in this dynamic field, consider enrolling in a financial services course with Monarch Institute.
Moanrch’s courses are designed to provide practical, industry-relevant training that prepares you for the real world. Visit our financial services courses to explore our course options and kick-start your financial career today!
