Career as a Financial Analyst in 2025: Ultimate Guide

Any major organization or business needs an expert to examine their financial data and make suggestions to improve their financial health. Different types of analysts specialize in handling different business needs. Since these analysts play a significant role in the decision-making process of an organization, there is an increasing demand for such professionals in the financial services industry. Here is everything you need to know about being a Financial Analyst.

Who is a Financial Analyst?

Financial Analysts are professionals responsible for gathering financial data and making suggestions to their employers. These analysts collect data from accounting reports, financial reports and market statistics for the company and study them to understand the current economic and business trends. Most of these organizations rely on such professionals to point out strengths and weaknesses in their financial framework. They further suggest ways to make improvements in the investment portfolio. A Financial Analyst in a typical setting is responsible for making presentations, building excel models, and making monetary forecasts for the company.

Importance of Financial Analysis in Today’s Business Environment

In today’s fast-paced and volatile business environment, financial analysis is crucial for the success and sustainability of an organization. Businesses rely on financial analysts to interpret data and provide insights that influence strategic decisions. Whether it’s identifying areas for cost reduction, assessing the profitability of new ventures, or evaluating investment opportunities, financial analysts play an indispensable role in ensuring businesses stay financially sound and competitive.

What are the Required Qualifications?

In order to be hired as an entry-level Financial Analyst, you are required to at least have a bachelor’s degree, preferably in economics, finance, or statistics. However, most companies these days prefer hiring someone with a master’s degree since these professionals have more exposure to the field.

You can also enrol for a CFA programme to enhance your resume and be eligible for senior positions in some organisations. In addition to these qualifications, it is considered an added advantage when a candidate has completed their MBA or holds a license from the Financial Industry Regulatory Authority (FINRA).

Other possible exams that can help you in your career are the Securities Industry Essentials (SIE), Series 7 – General Securities Representative Qualification Exam, and the Series 63 – Uniform Securities Agent State Law Exam.

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Steps for Becoming a Financial Analyst

Step 1: Earn a Bachelor’s Degree
A bachelor’s degree in finance, accounting, or economics is the foundation of becoming a Financial Analyst.

Step 2: Attain Licensing and Certifications
Obtaining certifications like CFA, CPA, or licenses such as FINRA Series 7 can set you apart and open doors to higher-level roles.

Step 3: Build On-the-Job Experience
Practical experience in financial roles or internships will provide exposure to real-world financial analysis and strategy.

Step 4: Earn a Master’s Degree in Accounting (Optional)
A Master’s in Finance or Accounting can be beneficial for more senior roles, offering deeper technical knowledge.

Compensation and Job Outlook

Salary Ranges and Trends

An entry-level Financial Analyst typically earns between INR 2 LPA to INR 5 LPA, with potential to reach up to INR 18 LPA or more with experience and advanced certifications. Salary growth is influenced by the company, location, and level of expertise.

Industry Demand and Growth Prospects

Financial Analysts are in demand across various industries, including banking, investment management, and corporate finance. The demand for skilled analysts is expected to grow as organizations increasingly rely on data-driven decision-making. The global financial services industry is projected to expand, which will further enhance job prospects for Financial Analysts in the coming years.

What Skills Do You Need to be a Financial Analyst?

Although the academic qualifications will make you eligible for being a Financial Analyst, you need to develop certain skills to be good at your job. Some helpful skills that employers look for when hiring Financial Analysts are as follows.

Technical Skills

Accounting 

Accounting is one of the most important tasks of a Financial Analyst’s everyday job responsibilities. A successful Financial Analyst must be able to interpret financial data from reports, balance sheets, and income statements, quickly and accurately. This includes developing your basic accounting skills, mathematical ability and your understanding of the general standards and accounting principles of your country.

Excel

Excel is a very important tool that is used by Financial Analysts regularly. It is used for creating financial models, statements and other financial spreadsheets. It is necessary to know all the basic shortcuts and formulae that are used in Excel to reduce your working time and improve efficiency.

Finance

When we say finance, we specifically mean corporate finance. The primary job of a Financial Analyst in any company is to help the management make financial decisions. To do this confidently, an analyst must be a strategic thinker and planner with extensive knowledge in capital structuring and investments. They should also be able to help make budgeting decisions for the company and stay actively involved in the company’s long-term and short-term financial plans. Financial modelling and planning are crucial parts of an analyst’s everyday job.

Financial Modeling and Analysis

When we say finance, we specifically mean corporate finance. The primary job of a Financial Analyst in any company is to help the management make financial decisions. To do this confidently, an analyst must be a strategic thinker and planner with extensive knowledge in capital structuring and investments. They should also be able to help make budgeting decisions for the company and stay actively involved in the company’s long-term and short-term financial plans. Financial modelling and planning are crucial parts of an analyst’s everyday job.

Soft Skills

Communication

Aside from these major financial skills, a Financial Analyst must also develop certain soft skills to be good at their job. They should be able to communicate their observations and financial decisions clearly and concisely to their team members or employers to get the desired outcome. For this purpose, they should work on improving their written and verbal presentations as well.

Attention to detail

As a Financial Analyst, you will be looking at numbers all day, every day. Analysts need to be vigilant about the data they analyse to be able to find small changes and discrepancies. A person with a good eye for detail can be better at finding such nuances in financial reports and is likely to be more valued by their employer.

Critical Thinking

Critical thinking allows Financial Analysts to assess data thoroughly, question assumptions, and come up with strategic recommendations. The ability to think logically and approach problems analytically is essential for providing valuable insights to the business.

Role and Responsibilities

Data Collection and Analysis: Collect financial data from various sources and analyze it to generate actionable insights.

Financial Reporting: Create and present reports that explain financial trends and offer solutions to business problems.

Budgeting and Forecasting: Assist in the preparation of budgets and long-term financial forecasts.

Investment Analysis: Assess investment opportunities and provide recommendations on portfolio management.

Risk Management: Identify potential financial risks and advise on risk reduction strategies.

What Kind of Financial Analyst Should You Be?

Financial Analysts can be of different types based on what they specialise in. Some of them are as follows. 

Investment Banking Analyst

These professionals are responsible for assessing the needs of the company and looking for potential investment opportunities. They are also supposed to look over any existing investments a company may have in their portfolio and determine if they are performing well or need to be replaced. 

Risk Analyst

Every business venture has certain risks that they need to be wary of. A Risk Analyst reviews financial plans and provides advice on how a company can limit their risks and increase its profits. They are required to research the financial market and advice the company on their decisions. 

Budget Analyst

Every organisation needs to have a concrete budget in place in order to function smoothly. A budget analyst is responsible for monitoring the finances of the company and making sure they are adhering to their financial limitations. A Budget Analyst is also required to collect and analyse data and come up with possible solutions or improvements for the existing financial system of any company.

Equity Research Analyst

An Equity Research Analyst is an elemental part of any securities firm, such as wealth management firms, pension funds, or banks. They oversee the investment portfolio of their client and also produce conclusive reports to make certain recommendations.

Treasury Analyst

A Treasury Analyst typically works in bigger companies and government agencies. They create reports for the finances of the organization and manage their investment income, liability and future expenses.

Career Advancement Tips and Recommendations

1. Pursue Advanced Certifications: Completing certifications like CFA, CPA, or MBA can open doors to senior roles and higher compensation.
2. Network with Industry Professionals: Building a professional network through conferences, seminars, and online platforms can help with job referrals and career growth.
3. Stay Current with Industry Trends: Keep up to date with the latest financial news, tools, and technologies to stay competitive in the job market.
4. Develop Strong Communication Skills: Effective communication of financial analysis and recommendations is crucial in this role.
5. Seek Mentorship: Find a mentor in the industry who can guide you in navigating complex financial challenges and advancing in your career.

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Conclusion

The Chartered Financial Analyst is a globally recognised qualification in the field of finance and investment. If you have recently completed your graduation or are appearing for your final semester, you may be eligible to become a CFA. Interested? We highly recommend checking out our Chartered Financial Analyst (CFA) course. To advance your portfolio and build professional skills, try Zell Education’s interactive courses that offer flexible training timings. Get in touch at +91 7208885600 or email us at [email protected].

FAQs on Financial Analyst Career

Which course can be done to become a Financial Analyst?

An individual who is interested in becoming a Financial Analyst can give the CPA Examination after graduation. Although it isn’t necessary, a degree in accounting, finance, or statistics is ideal to have.

What is the average salary/income?

An entry-level Financial Analyst can expect a base salary of anywhere from INR 2 LPA to INR 5 LPA. The salary can go as high as INR 18 LPA for exceptionally qualified professionals.

What companies in India hire Financial Analysts?

Top accounting firms and companies like Deloitte, EY, Wells Fargo and J.P. Morgan tends to hire a lot of Financial Analysts.

Partham Barot is an ACCA-certified professional. showcasing his expertise in finance and accountancy. he’s revolutionising education by focusing on practical, real-world skills. Partham’s achievements underscore his commitment to elevating educational standards and empowering the next generation of professionals.