Top 15 Financial Analyst Skills to be best on the Job
Are you a financial analyst who wants to be the best in your industry? If so, this post shows you the skills you need to develop to be highly effective in carrying out your duties and responsibilities.
What does a financial analyst do?
A financial analyst performs various duties which include generating reports that summarize financial data used by managers and executives for business decisions.
The typical job duties for financial analysts include examination of financial reports such as balance sheets, statements of income and cash flow, and determining how a company’s finances will affect business operations.
Now, to be a good financial analyst, here are top 15 skills and qualities to have:
1. Management Skills: Managing a team can be quite tiresome, especially for financial analysts. But with management skills, financial analysts can do well if they eventually find themselves in a leadership role in the future. Most employers look for these skills when they want to hire a good financial analyst for a new position.
2. Interpersonal Skills: Interpersonal skills help financial analysts to build and maintain very successful relationships with customers, and this is capable of creating a room for excellence. As you meet different people everyday, your interaction with each of them matters. It could invite or scare away a customer.
3. Communication Skills: Possession of excellent communication skills is very essential for financial analysts to defend their analyses and recommendations. Your communication skills must be both oral and written, and should enable you to explain financial jargon in simple terms. The success of every financial analyst depends on his or her ability to communicate effectively with clients and make successful deals.
4. Math Skills: It is so expedient for financial analysts to include differential equations and stochastic calculus in their courses. This helps them in acquiring the knowledge required to use mathematics to solve problems. In order to always get accurate results, it is good for financial analysts to apply calculations and measurements to their daily job routines.
5. Active Listening Skills: To be best on the job, financial analysts should give full attention to what other people have to say. This will help them to first of all understand the points before asking any questions to avoid inappropriate interruptions. Interrupting clients and co-workers at wrong times will make others to see you as unprofessional in your job.
6. Independence: The financial analysis career requires that those involved should be able to develop their own ways of doing things. They should guide themselves with little or no supervision, and depend on themselves to get things done.
7. Critical Thinking Skills: Financial analysts should be able to evaluate multiple options before they can assist the team to find a solution. Critical thinking skills should involve using logic and reasoning to identify the strengths and weaknesses needed for discovering alternative solutions to problems.
8. Financial Knowledge: It is quite helpful for financial analysts to know accounting principles and investment terms in order to understand income statements, balance sheets, and other financial documents of companies they follow.
9. Computer Skills: According to the BLS, financial analysts need a great deal of computer skills in database programs, statistics, and spreadsheet software. These skills can grant them access to large financial data sets, ability to transform data into useful information to bring to notice the investment decisions of individuals, companies, and other organizations.
10. Economic Foresight: Financial analysts should be able to understand the economic nature of the companies they work for, just as they spend enough time studying the financial documents too. They ought to keep their ears open for latest news in the global economy.
11. Learning Strategies: The strategies by which financial analysts learn or teach new things matter a lot in this profession. They should try to select and use training and instructional methods and procedures suitable for the purpose. There are some materials that may be less profitable in learning but more in teaching. Therefore, they must apply the right strategies at the appropriate time.
12. Data Analytical Skills: There are online training and certification programs organized for those interested in acquiring data analytical skills. This creates the urge to go for analytics or informatics projects available at the company where you work as a financial analyst.
13. Detail Oriented: When financial analysts want to review investments, it is necessary that they pay attention to details. Little issues may have strong implications on how sound an investment is. Being detail oriented helps financial analysts to get the best results and gives them the ability to avoid making unnecessary errors.
14. Problem Solving Skills: There are some problems that can be too complicated that they require problem-solving skills to tackle. Financial analysts should be able to identify such complex problems, and review related information to enable exploration and implementation of solutions.
15. Multitasking Skills: With multitasking skills, financial analysts can work on several companies’ data at a time, providing the best accuracy that the work entails. They will be able to fully understand and handle the analyses and the investments of the company they provide services for.
Developing the skills and qualities presented above can significantly improve your job performance as a financial analyst and make you one of the best in the industry.
And if you are an employer trying to recruit the best person for the financial analyst job, the above skills should form a major part of your requirements that applicants must meet.
Did you find the above skills useful in being the best on the job as a financial analyst? Please leave a comment in the box below; you may also give other qualities you think would make a good financial analyst.