However, knowing which financial moves to make and when to make them is far from obvious, which is why enterprises in both the public and private sectors rely on financial analysts. As it is among the fastest growing and highest paying jobs in finance, many people are interested in learning more about how to become a financial analyst. Exploring the financial analyst job description, degree requirements and job outlook along with the steps to take to become one can help individuals decide if it’s the right path for them.  

Financial Analyst Job Description 

Financial analysts advise organizations on financial decisions in an effort to increase their profits. They focus on balancing risk and return, and regularly assess the performance of bonds, stocks and other types of investments. Individual financial analysts’ job descriptions can vary based on their employer’s unique needs, but they typically include the following tasks: 

• Analyzing financial statements, market trends and economic data to produce reports and forecasts 

• Evaluating investment opportunities in equities, fixed income and alternative assets 

• Developing financial models to support budgeting, forecasting and strategic planning 

• Monitoring portfolio performance and recommending adjustments to meet client objectives 

• Preparing presentations and proposals for internal stakeholders or external clients 

• Collaborating with portfolio managers, accountants and risk management teams 

Because organizations in all sectors require sound financial guidance, financial analysts work in a wide variety of settings. Typical work environments for financial analysts include the following: 

• Investment banks, asset management firms and hedge funds 

• Corporate finance departments of large companies 

• Brokerage firms and mutual fund companies 

• Consulting firms and financial advisory services companies 

• Government agencies and regulatory bodies 

How to Become a Financial Analyst in 7 Steps 

Becoming a financial analyst involves a combination of education, practical experience and credentialing.  

1. Earn a Bachelor’s Degree 

Aspiring financial analysts should begin by earning a bachelor’s degree in a field such as finance, economics, accounting or business administration. Their coursework should cover financial accounting, corporate finance, statistics and economics.  

2. Develop Technical and Analytical Skills 

Prospective financial analysts should master industry-relevant tools such as Microsoft Excel, Bloomberg Terminal and financial modeling software. Cultivating strong quantitative abilities, attention to detail and critical thinking skills early lays the foundation for successful job interviews and a shorter learning curve when working in a live environment.  

3. Pursue Internships 

A degree backed by relevant experience can be a winning combination on a resume. Future financial analysts should look for internships in banking, consulting or corporate finance during their college years. These experiences allow individuals to apply their classroom learning, build credentials and create industry connections.  

4. Obtain a Professional Certification 

Many employers value confirmation that a candidate for a financial analyst position possesses specific industry knowledge and skills. Although they are usually not required, obtaining a professional certification demonstrates to employers that a candidate’s financial skills have been tested and verified.    

Individuals can consider pursuing the chartered financial analyst (CFA) designation, a gold standard in the industry. Another certification such as the certified financial planner (CFP) or financial risk manager (FRM) credential can also improve a candidate’s opportunities.  

Some employers may require candidates to gain Financial Industry Regulatory Authority (FINRA) licensure after they are hired. 

5. Build a Professional Network   

Aspiring financial analysts can make useful connections by joining a finance club, attending industry conferences or participating in alumni events. Networking can facilitate an individual’s job search and sometimes even lead to mentorship opportunities.  

6. Apply for Financial Analyst Positions   

Entry-level roles such as junior financial analyst, research assistant or credit analyst are an excellent first step for those beginning a career in finance. Candidates should tailor their resume for these positions to emphasize their quantitative projects and achievements.  

7. Commit to Continuous Learning   

To succeed as a financial analyst, professionals need to remain current with market developments, regulatory changes and emerging analytical techniques. Earning an advanced degree such as a Master of Business Administration (MBA) can further enhance an individual’s finance career trajectory. Some employers may prefer that financial analyst candidates hold a master’s degree. 

Financial Analyst Salary and Job Outlook 

Financial analysts enjoy competitive compensation and solid growth prospects, according to the U.S. Bureau of Labor Statistics (BLS). As of May 2024, the median annual wage for financial analysts was $101,350, with the top 10 percent of earners making more than $180,000 per year. 

The long-term job outlook for these professionals is also positive. The BLS projects that positions for financial analysts will increase by 6 percent between 2024 and 2034, much faster than the predicted 3 percent growth for all occupations. 

Earn a Degree That Supports Your Journey Into Finance 

After identifying how to become a financial analyst, the first step is gaining an educational foundation that aligns with your professional goals. SEMO Online’s Bachelor of Science in Business Administration (BSBA) in Accounting program offers students the tools and skills they need to succeed in a finance career. 

Consisting of a business administration core curriculum supported by accounting-specific coursework, this 120-credit hour program helps students develop the knowledge base and skills required to qualify for financial analyst roles as well as a variety of other careers in business administration.  

SEMO Online also offers an MBA in Accounting, among other business degree programs. 

Find out how SEMO’s 100 percent online accounting programs can support your goal of becoming a financial analyst. 

Recommended Readings 
Leading by Example: Justin Jansen’s MBA Journey 
What Is a BSBA Degree? 
What Should I Major in If I Want to Start My Own Business? 
 
Sources: 
CFA Institute, CFA Program 
CFA Institute, “What Is a Financial Analyst?” 
CFP Board, The Standard of Excellence 
Financial Industry Regulatory Authority, Registration  
Global Association of Risk Professionals, Financial Risk Manager 
Indeed, “How to Become a Financial Analyst With No Experience in 8 Steps” 
Investopedia, “How to Become a Financial Analyst” 
U.S. Bureau of Labor Statistics, Financial Analysts