By 2030, the international financial analysis market is projected to be valued at $ 19.8 billion growing at a compound annual growth rate of 10.3% from 2021 to 2030. As the demand for a niche function like financial analysis grows, so will the number of job opportunities.
This is a role that demands specialised skills. Hence, aspiring financial analysts should invest in strategic training. In this blog, I delve into the role of financial statement analysis in the financial services industry. I also recommend nine ways in which professionals can break into this field.
What is financial statement analysis?
Financial statement analysis is considered to be a valuable skill in the financial services industry because of its importance in helping businesses make key decisions. The financial statements of any organization tell a story about the business - its success, risks, failures, and liabilities. A financial analyst's role is to understand financial statements in depth. They have superior capabilities to can see through loopholes and missing or fraudulent information. They may need to sift through the annual financial reports of a business, review key financial statements of a company, to vet a potential merger, or acquisition, investment in a startup, or approving a business loan. The stakes are often high because there are billions of dollars at stake.
9 Tips for aspiring financial analysts
Financial analysis is a lucrative job in today's financial services industry. Here are nine proactive steps that aspiring financial analysts can take to edge closer to their dream.
Build core skills
Today, there is a high premium placed on skills in the job market. Financial analysts must have exposure to subjects like accounting and ratios, financial valuation, finance services, and treasury, risk management, and compliance. It is equally important to cultivate skills like communication, presentation, and negotiation. One also needs to be savvy with the tools and technology needed to bring accuracy, speed and efficiency to the process.
Go back to school
The key to building skills is to invest in training. There are several approaches to building skills. These range from pursuing free online courses, joining a company as an intern, or going back to school and learning through a structured programme. The latter is most advisable since this is a niche skill that comes with a lot of job responsibilities.
Pursue a certification programme
When going back to school, I recommend pursuing a Financial Modelling Certification Course, other than a generic MBA. Such a programme is compact. It focuses on enabling learners to build skills for the financial analyst role. It is also advisable to make sure that the program partners with a recognised industry name.
Do it online
Those professionals with a day job may not wish to give them up. If this is the case, they can consider going for Financial Analyst Online Training, which creates flexible learning opportunities. Continue to work during the week and pursue training over weekends. However, I must warn aspiring professionals that this training is still quite intense and requires a dedicated effort.
Build hands-on skills
An important aspect of training for one's future financial analyst job is to build hands-on skills. Ensure that the training programme comes with live simulation projects. These are opportunities to test one's knowledge and skill set, and also collaborate with others on projects.
Take advantage of placement support
Landing a job with adequate compensation and growth potential is crucial post the programme. To achieve this, I recommend taking full support of the programme's placement support framework. Such a framework offers mock job interviews, resume-building support, and opportunities to interview with the top names in the industry.
Build a culture of self-learning
Today, there are a large number of high-quality online learning resources available. I recommend taking full advantage of them and investing extra effort in the process of self-learning. The best part is that they are accessible anytime from anywhere. This quality will also come in handy on the job, where there may be no time to seek the support of others.
Keep growing the network
I recommend that learners keep building their networks by engaging closely with classmates, alumni, faculty, and mentors. Investing in building relationships can prove extremely handy at various stages of one's career. This includes navigating job shifts and collaborating for projects.
Stay abreast of market developments
Financial awareness must always be extremely savvy about market developments. I recommend subscribing to all the top sources of financial news, As well as keeping an eye on changing regulations.
Pursuing short-term advanced programmes such as financial modeling certification courses can help build the necessary skills needed to differentiate one's self in the job market. It is an investment in one's future career path.
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