5 skills of a successful financial analyst February 7, 2019

5 skills of a successful financial analyst

Being a financial analyst is one of the most popular career paths in finance. This is largely because analysts can work in a range of industries and also because the field has some great benefits, including a high earning potential. They make business recommendations for an organisation based on analyses they carry out on factors like market trends, the financial status of a company (or companies) and the predicted outcomes of a certain type of deal.

There are, however, definitely key traits and skills a successful financial analyst must have.

Thinks like an entrepreneur.

Great financial analysts look at their company's key financial and performance measures and think about ways to increase profitability and grow market share. They are driven by a desire to find opportunities and threats and to locate innovative ways to answer key questions. They actively offer their thoughts to key decision makers and enjoy discussions about the business with management and their peers. Colleagues solicit ideas about how to solve problems, and they are often included on cross-functional teams.

Interpersonal skills

There once was a time when finance professionals were bound to cubicles, but that era is long gone. These days, any perception that a career in finance involves simply crunching numbers has been replaced by the reality that positions require workers to deal with clients every day.

For accounting and finance professionals, the ability to build successful relationships with customers is critical if you want to excel. When looking at two equally qualified hires, interpersonal skills are often the point of difference.

Analysis using spreadsheets and databases

To be a good analyst, you will need to learn how to use the tools in spreadsheets and databases. These tools will assist you to combine disparate data, tackle problems and make presentations to the management. Although it is important for you to have experience in using all the tools, knowing their existence and the appropriate time to use them is what matters most. Be that as it may, understanding pivot tables and query design will be an added advantage. It is also important for you to know the style and preferences of your employer. Different managers will prefer different modes of data representation. Some prefer graphs while others may like financial tables.

Problem-solving skills

These days, it isn’t enough to have watertight knowledge of systems and processes – it’s also essential to be able to tackle complex problems as they arise. Whether it’s addressing the financial implications of a complicated business structure or coming up with a personalised solution for a client’s tax dilemma, a record of solving problems will see your career grow in leaps and bounds.

Knowledge of IT software

The increased focus on digitisation and automation has encouraged more hiring managers to look toward financial professionals with the right IT skills to leverage new financial systems. Candidates who can demonstrate knowledge and proficiency in predictive analytics, accounts payable automation, SAP accounting software or Oracle will find themselves in-demand.

Looking for finance training to have the skills of a successful financial analysis? Contact us to find out more about the financial accounting courses we can offer you at London TFE and learn more about financial accounting techniques.