What Is Financial Planning and Why Is It Important?

What is Financial Planning?

Financial planning is a very broad concept and applies to businesses in every industry, it also applies to individuals. Financial planning can be explained as a process of estimating the capital requirement for a project by assessing its requirements, feasibility and profitability.

It helps to determine how an organisation will meet its goals and objective. It helps to paint the overall picture of the financial stability of an organisation by evaluating their income and expenditure. It established the short and long term financial goals and helps to maintain financial prudence.

A financial plan is an important document that is created as a part of the financial planning and analysis course. In the case of individual financial planning, a financial plan contains a person’s current monetary stance and their short and long term financial goals. It also contains comprehensive strategies and the resources needed to meet the financial objectives stated in the plan. For companies, the financial planning process entails making financial policies that guide procurement, investment and administration of capital.

The Importance of Financial Planning

Financial planning is indispensable in the contemporary economic landscape; it applies to both businesses and individual. Financial planning is a growing industry and those aspiring to make a career in this sector can opt for a financial planning course to have an edge over the competition. Let’s delve deeper into why financial planning is so important and how does it help.

  • Tackle Inflation: One of the most important advantages of financial planning is that it helps to tackle inflation that is normally unaccounted for by individuals and businesses. Inflation is defined as the general increment in the price of goods and services in the nation’s economy. What this does is it drains you of your wealth without any specific trigger.Suppose that you bought a good X two years ago at 100 bucks and today it costs you 150, keeping your budget constant, you are spending 50 bucks more to avail the same quantity of goods, this has an impact over your total budget. So your 100 bucks today is not as valuable as it was two years back. Financial planning helps you keep up with the inflation rates.
  • Meeting Long Term Objectives: Financial planning allows you to meet your long term financial obligations without any worries. We all have important milestones to achieve in life that requires monetary support, it could be buying your favourite car, dream home, marriage, children’s college education, etc. All these responsibilities and needs require meticulous financial planning.The earlier you focus on financial planning, the better off you would be. Investing in any form of securities for a longer period will help you earn higher returns and give you more flexibility to meet your long term objectives.
  • Prepare You for Emergencies: Emergencies are a part of life; we can’t predict it and we sure can’t avoid it. In life, we often come across situations that demand a huge chunk of money to tackle the situation; it could be a medical emergency or any other. The unavoidable circumstances demand us to prepare better for our future so that we are not left helpless. Robust financial planning can help us tackle emergencies head-on and we are better prepared to manage it.
  • Improves Your Living Standards: Good financial planning helps you to improve your standard of living by optimising your expense and income. It can help you increase your savings and enjoy a better lifestyle using passive income. You can even customize your plan to make it more suitable for your lifestyle and income level. Financial planning also plays a key role when it comes to planning your retirement. It allows you to enjoy a happy and comfortable life after retirement by planning it. In addition to this, careful financial planning also helps you save a great deal of money on taxes that you can use to meet your requirements.

What Processes Do You Use To Create Financial Analysis Reports?

It is imperative for any financial professional to know the basics of effectively analyzing the financial statements of a company. This requires a thorough understanding of 3 important areas:

  1. The structure of the financial statements
  2. The characteristics, trends, and patterns of the economy of the industry which the firm belongs to
  3. Strategies of the company to differentiate itself from competitors.

A finance professional with financial analyst courses will be able to work his way through analyzing financial reports with effortless ease. However, the following six-step approach could help in developing an effective analysis of financial statements.

  1. Identify the economic traits of the industry

It is integral to undermine the value chain analysis of the industry- the chain of activities involved in creating, manufacturing and distribution of the products or services. Michael Porter’s Theory of Five Forces- Threat of New Entrants, Threat of substitutes, Bargaining power of Buyers, Bargaining power of suppliers, Competition could be used to analyze the economic climate of the industry.

  1. Identify and analyze the strategies of the company

It is important to look at the nature of the product/service being offered by the company. One should look at the uniqueness, exclusivity, level of profit margins, customer base, customer loyalty, and cost control measure. It is also important to look at the supply chain, logistics and geographic and industry diversification of the company.

  1. Measure and assess the quality of the firm’s financial statements

The financial statements of the company must be reviewed in accordance with the relevant accounting standards and the current economic climate of the country. Balance sheets must be assessed on the basis of valuation, classification, and recognition to get a proper evaluation. The balance sheet must represent the true and complete position of the company’s financial scenario. The income statement must be a complete representation of the company’s economic performance. The cash flow statements will reveal the impact of the firm’s liquidity position from the operation, investments and financial activities angle over a period of time. In a nutshell. The cash flow details where the funds came from, where they were spent and how the liquidity of the company was affected.  With a financial analyst certification, an experienced finance professional will be able to make a successful evaluation of these factors.

  1. Analyze the profitability and risk situation.

This is where a financial professional with a Financial Analyst certification can add value. With respect to profitability, two questions need to ask:

  • How profitable are the operations in relation to the assets
  • How profitable are the operations in relation to the equity shareholders?

It is important to identify potential risks, measure and assess their impact on profitability with the help of financial statement ratios relating to assets, debts, liquidity, etc. These ratios must be compared to earlier periods and also to the industry trends.

  1. Forecast financial statements

It is challenging, however, it is important to forecast with reasonable assumptions about the future of the firm. This should include the indicative figures of cash flows and income to the company in the coming financial year.

  1. Valuation of the company

The last step involves the valuation of the company. Although there are several methods, the discounted cash flow methodology is the most commonly used technique. Investments must be valued based on their future cash flows at a discounted rate. Methods such as relative valuation or accounting based measures could also be used. 

Once the analysis is complete and the financial statement made, there is one pertinent question to be answered- “Can these figures be trusted”. Several firms have faced accounting irregularities and it is up to a finance professional to understand these types of manipulation to perpetuate into the causes and find effective solutions. Financial Analysis courses train professionals who wish to specialize in analyzing financial reports to help companies make the right investments towards healthy growth. These courses will help Financial Controllers who are closely involved in the financial aspects of the organization.

For more information regarding this piece, you can also contact us on – info@imarticus.com or 1-800-267-7679 or can enquire us online through the Live Chat Support system or can visit our various training locations based in – Mumbai, Thane, Pune, Chennai, Bangalore, Hyderabad, Delhi, Gurgaon, and Ahmedabad

What Are the Responsibilities of a Financial Analyst?

Data science has been playing a revolutionary role in the evolution of the banking and finance industry. Business decisions and future projections are no longer based on wild guesses and ambiguous assumptions. In the 21st century, businesses decisions are backed by relevant data that provides valuable insights. Now, the big question here is how will companies leverage data?

Well, the data science industry is fairly new and growing. To harness the power of data companies employ analysts who specialise in making sense of data. Financial decision-making for companies is very crucial and requires expertise in the domain. Financial analysts are employed by companies to help save fortunes and develop a strategic growth plan.

The increase in demand for financial analyst professionals has made it a lucrative career prospect for individuals. Financial analyst certification helps to establish credibility and increase the job prospects for individuals looking to work as financial analysts. Let’s jump into some of the major roles and responsibilities of a financial analyst.

Responsibilities of a Financial Analyst

Financial analysts play a crucial role in the functioning of an organisation. They help to discover real and valuable insights after conducting a thorough analysis of the data obtained from various sources. They help to identify valuable investment opportunities for companies and help them grow their business in new avenues after doing an in-depth cost-benefit analysis.

They are responsible for working with the accounts department to ensure accurate financial reporting. They are also responsible for performing market research and conducting data mining. Creating financial models like Mergers and Acquisitions (M&A) model, Leveraged Buyout (LBO) model, Discounted Cash Flow (DCF) model, etc. is also the part of their job role.

The role of a financial analyst also varies a great deal depending on the type of organisations they work at. The degree and scope of work also vary to a large extent on the size of the organisation. Financial analysts are primarily employed by insurance firms, banks, investment firms and KPOs. Most financial analysts prefer to work with investment, either for a buy-side investment firm or sell-side investment firm. The major responsibilities of financial analysts are listed below.

Collection and organisation of information

The first step to conduct any research work is to gather valuable and relevant data that can be used to achieve the desired objective. Financial analysts are responsible for the collection of relevant information and organisation of the data into presentable formats that can be easily understood by the stakeholders. These data might include accounting related information finance metrics, economic data, general stats, etc. These data are collecting using company database or third party providers like Bloomberg.

Analysis and Projections

The collection and organisation process is followed by conducting a thorough analysis to obtain valuable information regarding the company’s financial positioning. The historical performances are analysed after collecting relevant variables to the analysis process. These might include financial data such as inventory turnover ratio, year on year growth rates, liquidity ratio, an asset to liability ratio, profit margins (gross and net), etc.

After the analysis is conducted, the projections and predictions regarding the company’s future performance are made. Various projection methods including regression analysis, bottom-up bottom-down approach are used to predict future movements and take desired actions.

Developing recommendations

Building recommendations is a crucial responsibility of financial analysts. Collecting data and conducting analysis helps to identify the problems. The projections are related to unveiling future scenarios. The recommendations process is all about providing suggestions and coming up with solutions to tackle those problems. This might include finding new growth trajectories, identifying profitable investment opportunities, cutting down losses, etc.

Top 10 Interview Questions And How To Tackle Them For A Financial Analyst Role

Financial analysts are responsible for assessing financial data, financial statement preparation, studying business trends, appraising a business’s financial statements, and potentially meeting with company management to determine the firm’s performance and evaluate the leadership team.

Interviews can be stressful, and preparation makes you confident. So here we’ve put together ten financial analyst interview questions along with potential answers that will help:

Financial Analyst CourseWhy do you want to be a financial analyst?

Recruiters want to know what attracts you into the job scope of a chartered financial analyst? Tell them elaborately about the real motivation this role puts in you. Avoid generic answers, preferably say you love working with numbers to understand the financial implications of decisions.

Where do you see yourself in five years?

If you’ve done a financial analyst course and are a fresher, saying “dreaming about CFO at Fortune 500 company” isn’t a realistic five-year goal. Instead, be realistic and say, “I would ultimately love to be a CFO, but for now, I want to spend time learning and making an impact.”

Why association with us?

Recruiters want to know what is about their company that attracts you? For example, say that you’ve researched many companies and yours is a perfect fit because you offer various roles for financial analysts.

How do you develop investment recommendations for senior management?

Take this as an opportunity to share how your mind works. Talk about how you get specific recommendations and less about tools and analytical specifics. Strike the perfect balance and talk about what you learned during financial modeling courses, SWOT analysis, ratio analysis, etc., and how it would help with ROI? 

Financial Analyst Courses

How are you meeting tight deadlines?

Recruiters want to know about your performance under pressurized circumstances. Describe an example, a problem you faced, and your role to resolve the challenge with efficiency.

How’ll you deal with a discrepancy in the details of a cash flow statement?

Here you are expected to identify problems and constructively address them. Be smart and say, “I’ll double-check the numbers to ensure the fact of discrepancy. Then, after thinking through the available ramifications and remedies, I would meet with my manager immediately to discuss.” This shows your attention to detail and the positive approach.

How do you suggest handling unhappy internal customers?

Know how financial analyst roles are gatekeeping and may require making unpopular decisions. Let managers know how you can keep the calm and diffuse situation positively. Tell you will listen carefully to concerns and find a real-time solution. Say, “I would also share the conflict with my managers to get their guidance.”

What will you do if the team challenges your opinion?

To answer this, take an opportunity to reflect on how well you play with others. Your description of the example and how you reacted will be necessary. Show your communication and intellectual skills here.

What’s an EBITDA, and what isn’t included in it?

Such questions test your technical knowledge and what you learned through financial modeling courses. So, be prepared for complex questions and establish the fact that you know your stuff!

What tools you’ll use to prepare illustrated reports with graphs, spreadsheets, or charts?

Plan, prepare, and practice! Show the employers that you have a working knowledge of the tools of the trade. The more examples you have ready, the better impression you have.

Lastly, to land into better employment roles, make sure you invest time in a financial analyst course.

Imarticus LearningFinancial Analyst Courses offers a range of courses that help you secure excellent employments. Check out their financial analytics course syllabus here, and enroll in one to gain momentum in new-age careers!

Related Article:

https://imarticus.org/what-is-a-financial-analyst-course/

Why is Financial Modelling Important?

As we move further in the 21st century our dependence on the use of modern technology to complete our tasks is increasing. Businesses are increasingly relying on the applications of progressive technology that uses data analysis to solve real-world problems. Data science has been the key driver of growth for businesses in the digital age.

The finance and banking sector is also leveraging the power of data science to study the market and predict future trends. It helps them provide accurate insights into the future that would’ve been impossible without data.

What is Financial Modelling?

Financial modelling can be simply explained as the process of creating an abstract picture of the real-world financial scenario. A lot goes into creating and perfecting a financial model, it is a mathematical model that can help to predict the financial performance of an asset, portfolio, project, business, organization, etc.

It helps to assess the overall financial performance of the business and make future predictions regarding the same.

So how does it work? What goes into creating a financial model that can accurately predict the performances of financial assets and projects?

Well, a lot goes into creating a financial model but the key ingredients in any financial model remain the same. The main elements of a financial model include historical data regarding the asset, project etc. and assumptions about the future that might have an impact on the overall performance.

To assess a company’s financial performance, the preparation of important financial statements including cash flow statement, balance sheet, profit and loss statement, etc. is required. Based on these financial statements, complex financial models are built to predict and forecast future performance. Some of the commonly used financial models include a Discounted Cash Flow (DCF) model, Leveraged-Buyout (LBO) model, and Mergers & Acquisitions (M&A) model.

The Importance of Financial Models

In today’s data-driven world, financial models help businesses to obtain valuable insights regarding the market and performance of a project, financial asset, portfolio, etc. This helps them make prudent investment decisions related to their business. Financial models are generally used for conducting complex financial analysis and business decision making.

It is used by both inside executives and outside parties who want to analyze the business. Financial modelling is a highly demanded skill by employers in the banking and finance sector. A financial modelling course can help you obtain a comprehensive understanding of the subject and impart you with practical knowledge and skills regarding the field.

In the financial modelling process, all important variables that might affect the financial outcome of a project or business are inserted into the model to create different future scenarios, this helps the organization by keeping them prepared for all uncertainties and have a contingency in place to tackle the situation.

Another important role of financial modelling can be seen in the case of capital budgeting. It helps to a great extent when it comes to evaluating the cost of capital and guiding on the perfect choice of capital for a business.

The main applications of financial modelling can be highlighted in the below-mentioned contexts.

  • Financial modelling plays a key role in raising capital through debt or equity securities
  • It helps businesses with mergers and acquisition by predicting the value of assets and liabilities and evaluating the returns from assets and other investments to give a fair picture
  • It helps businesses to grow organically by predicting the scope and suitability of operations in a particular market
  • It aids businesses in selling assets and business divisions, in turn, helps them provide more liquidity
  • Budgeting, forecasting and valuation are some of the most important uses of financial modelling for businesses in multiple industries
  • Capita allocation can be tricky when not much is known about a project, financial modelling helps to forecast the return on investment for various projects to find out the most profitable ones

Also Read: What is Financial Modelling Course

What is the Job of a Financial Analyst?

Financial Analysis is a broad field and one can find a plethora of job titles and career paths to choose from. While the role of an analyst is a demanding job, it is not quite easy to break into the financial industry services. Scroll on to know more about a Financial Analyst course.

So What Does a Financial Analyst Do?

A financial analyst is responsible for gathering data, analyzing results, recognizing financial opportunities for the business, and recommending suitable outcomes of how various business decisions will help the financial status of the organization.

Let us understand in detail what is the role of a financial analyst in the Finance Industry.

  • A Financial Analyst keeps a record of current and past financial data to draw conclusions and identify the various trends. They need to collect various data like historical financial reports, stock price information, statistics data, accounting data from the general ledger, or any other type of quantitative data.
  • After collecting the data, they generate reports based on the information collected and provide insights for the various business decisions. An analyst needs to be very good at working on Excel as well. They need to take care of organizing the data, cleaning it up, and presenting it in a sensible format.
  • Once the data is organized, it’s time for Analysts to analyze the various reports and draw conclusions from the information generated.
  • They need to constantly communicate with the management team to produce long-term commercial goals.
  • A good financial analyst is not only good with numbers but also has to regularly suggest budgets and improvements based on the financial information generated that will help in the successful running of the company. This may include cutting off excess costs, increasing market share, considering ways of improving customer satisfaction, etc.
  • Financial Analysts must always be on the lookout for new investment opportunities.
  • Along with preparing useful data, a financial analyst must also be good at presenting the data in an understandable format to the other teams.
  • Financial Analysts are responsible for developing financial models and forecasts that help the organization to identify the expected future results. Analysts use several forecasting methods that help the company to predict how their business will perform in the future.
  • Investment Banking Analyst, Equity Research Analyst, Financial Planning Analyst, Corporate Development Analyst, Private Equity Analyst, and Treasury Analyst are some of the most common types of Analyst Positions in the Finance Industry.

What to expect on the job as a Financial Analyst

You can be a successful Jr. Analyst if you can quickly adapt to making efficient use of spreadsheets, databases, precise PowerPoint presentations, and other essential tools and Softwares for analysis. Senior analysts, however, need to have much more skills to be successful in the field. They need to dedicate long working hours, be able to mentor the junior analysts, form strong interpersonal relations with their seniors and other teams, and also need to have good presentation skills.

Financial Job Analyst job outlook

A job as a Financial Analyst offers a plethora of job opportunities along with a promising career. As the overall economic activity in the country is growing, so is the need for financial analysts. With the increase in organizations and expansion of businesses, the need to recognize and evaluate new investment opportunities will also increase. The need for analysts experienced in identifying new markets with investment opportunities in various geographic locations is very much in demand.

Also Read: What is Financial Analyst Course

How Do I Get into Financial Analysis with an Accounting Background?

Financial analysis is a hot field right now. It has experienced a boom due to the rise of cyber technology and in startup culture. Existing organizations have become bigger while new startups and enterprises are mushrooming across India. All of this increases the demand in financial analysis. Which in turn makes it a sought-after field for aspiring students and current finance professionals.
The good thing about financial analysis is that anyone can transition to it from another field. This is even a more valid proposition for those already in the finance and accounting fields. You just need a bit of training and skill learning to enter the field. Here’s how.

Entering the Field of Financial Analysis

The first thing to do when you attempt this transition is to understand the differences between accounting and financial analysis.
Accounting deals with inspection and handling of financial records, bank statements, and balance sheets of an organization. As an accountant, you will need to go through files after files and check if the math fits right. If it doesn’t, you report it for further investigation. An accountant also takes care of taxes, filing returns, and other financial activities such as billing.
Financial analysis, on the other hand, is a bit more advanced concept. Here in addition to the inspection of financial records, you also provide advice on how the organization can make better decisions. Essentially, your role would be to assess all historical financial dealings of the company and provide them with counsel on ways they can improve their financial decisions in future.
Another aspect of the role – something you can learn more about in financial analysis courses – is that you will work with an additional set of skills and tools. You will work more with concepts like trend analysis, cash flow analysis, and working capital to name a few. The processes will be slightly different than the accountant role because here your main task is analysis.

How to Make the Switch to Financial Analysis?

If you are an accountancy student or are working as an accountant somewhere, the next step would be to start learning about financial analysis. There are three ways to do this:
• Take a financial analysis course. This is the most recommended way as you will both learn about concepts and earn a certificate that you can use to land job interviews. There are many online courses available that will give you a good peek into the field. You can also do this part-time while working at your existing job
• Learn individual skills. Start with the ones that are mentioned above plus others through online courses. The advantage of learning individual skills is that you can learn about them in more depth. All of this will prepare you better in future when you actually work as a financial analyst
• Get an internship. This may require you to leave your current job but the experience will do you good. An internship at a financial analysis firm under the tutelage of experienced professionals is another great way to learn more about the field
You can also do all three of them at once if you are focused and determined to get into financial analysis. But if you want to take it safely ahead while keeping your current job, enrol on a financial analysis course and start learning about it on the side. This will also help in the rare case that you lose interest in the field midway. This way you can still get back to your primary job. Start your learning today!

Also Read: How To Become Financial Analyst With No Experience

Financial analysis Software Market 2020

Financial analysis software is used by companies/firms to track their financial process. It is used to measure the Financial KPIs (Key Performance Indicator) which signifies the profit/revenue-generating capacity of any particular firm/company. These software help companies in planning their company’s future and business model. In this era, cloud-based or web-based software available for Financial analysis is in heavy demand. Companies ranging from large enterprises to SMEs (Small & Medium Enterprises) use the software available in the market. Let us see about the current market condition of Financial analysis software and the market trends.

Financial analysis Software Market Overview

The global financial analytics market will reach up to USD 15.21 billion by 2025. A lot of revenue is generated by the Financial analysis software developing companies like Oracle, IBM, Microsoft, etc. Companies shift toward software from the traditional Financial analysis approach to improve financial performance, to monitor risk, to improve the accuracy of financial decisions, for cost management, etc. While using traditional analysis approach or feeding your financial statements in excel/spreadsheet, any individual will find it tedious.
These days, companies/firms replace the traditional Financial analysis methods with software that helps in planning, budgeting, forecasting, risk analysis & management. Options like data recovery and automation processes are luring companies to use Financial analysis software. There is a lot of opportunity in the Financial analysis software market in the upcoming years as the globe is seeing technological advancements.

How Financial analysis software is in demand in 2020?

The plus points of Financial analysis software which increase its demand are as follows:

  • The era of AI (Artificial Intelligence) & Machine Learning have fuelled the growth of Financial analysis software. They help in automation and forecasting.
  • Using a dedicated software will help in increasing the accuracy in financial statements of any particular firm. It will also help in storing business information centrally.
  • Strong security measures are there in the Financial analysis software with features like fault tolerance and data recovery.
  • Help in monitoring the company’s performance in terms of generating revenue/profit. It also helps in seeing whether the firm is meeting its goal or not.
  • It helps in comparative analysis and building future strategies.
  • The loss generating assets/deals can be identified with the help of Financial analysis software. Risk analysis and management can be done easily.
  • Cloud-based solutions for Financial analysis can perform analytics on huge chunks of data. These solutions provide business agility and help in collaboration between partners/firms.

How to get into the Financial analysis Software Market?

One can create a Financial analysis software if he has sound programming skills. Famous Financial analysis software SAS is written in C, MATLAB is written in C, C++. One needs to have strong computation skills and a good problem-solving approach to develop financial models. Your software must have models that can predict the growth patterns and trends. Companies and firms are preferring the software because of its ability to various works like Business valuation, Financial performance monitoring, etc. simply and accurately. You have to be familiar with the basics of Financial analysis before joining this market. You can learn from the Financial analysis courses available on the internet. You should be good in economics, finance, numerology, etc. to make and understand financial models which can be used by companies to plan their business structure.

Why Is Financial Analysis Important?

Financial analysis refers to the detailed process of evaluating a business, reports, budgets, ideas etc. to assess the feasibility of investing in the same, buying it, making informed decisions that align with organisational goals etc. It usually evaluates the same on four parameters, namely- liquidity, profitability, solvency, and stability. Thus, as important as it is to account for financial analysis, it is also important to interpret it and understand the relationship between different business components for enhanced financial analysis. A financial analysis course extends the knowledge to perform an in-depth analysis using various techniques such as vertical analysis, horizontal analysis, ratio analysis, trend analysis, interpreting cash flow statements and balance sheets, etc. In today’s date, this practice has become all the more important as financial literacy, research and management are on the rise. To save money in a progressive trend, investment in assets, purchasing value investments, wealth creation, expansion of business, profitability with sustainability etc. a company needs to perform a financial analysis before making any decisions in this VUCA environment. Listed below are other reasons as to why taking a financial analysis course is paramount for the short term and long term interest of the firm:

● To assess the risk involved: No investment is rewarded without risk. No decision comes without impending peril. During a financial analysis, one can calculate the reward one reaps in proportion to the risk undertaken. It also helps companies in assessing their risk-taking capacity, calculate opportunity costs, and make choices accordingly.
● Comparative Analysis: Understanding and interpreting financial statements charts an easy path to compare between more than one avenues for investment, budgeting, forecasting and so on
● Health check of the financial performance of the firm: A microscopic view of the financial statements, annual reports, share prices, and market share of a firm can reveal it’s stability to pay dividends to shareholders, profit retention, resource optimisation etc. that helps in making an informed decision
● Productive Efficiency: An in-depth look into the financial statements and reports of an organisation puts them in a better place to control any discrepancies in the operational and managerial capacity of the firm and take feedbacks or measures to ensure the removal of the same
● Relationship with stakeholders: While the financial communique of companies provides an idea to the employees in terms of their pay, monetary and non-monetary benefits; it gives knowledge to the existing and potential shareholders of dividends paid. Similarly, it informs the suppliers about the credit-worthiness of the firm and to the investors an understanding of the company’s revenue-generating capacity and profit maximisation. Thus these statements provide an insight into the workings of the organisation to different stakeholders which determine a long-lasting relationship with various groups of stakeholders.
● Trend Spotting: By always staying informed about the inter-alia of a company through documentation of all its business decision via its annual reports, one is vigilant of the changes, trends, decision-making approaches of the company that helps in better financial planning and lucrative returns
● Macroeconomic and Microeconomic perspectives: The course of financial examinations of companies is such that it gives an extensive idea of not only what is happening within the company, but also a broad view of the competitors, the industry, and thus the economy. It amplifies the understanding of how everything is connected in the ecosystem due to which financial analysts and planners can vet decisions in terms of stable organisational finances and wealth management.
● Financial Planning: Due to the financial analysis course, companies are in a better place to decide, plan, and organise their wealth management portfolio, which aligns with short-term and long-term financial goals. It is a calculated prediction that brings stability, additional sources of revenue, and increased assets, and improved wealth creations.

Proper financial analysis, management, and planning benefits any organisation irrespective of their nature and size. It empowers them to make better management decisions, increase profitability, and achieve organisational goals in due course of time.

Will the Financial Analysis Course Be in Demand in 2020?

Will the financial analysis course be in demand? It’s a question worth pondering upon if you are planning to pursue a career in the most rewarding industry. We can go by some general facts to find out the relevancy. A course like Chartered Financial Analyst (CFA) has always been rewarding, but what if another financial analysis course is going to be as rewarding as the CFA program?

With the enhancement in technology and budding online financial institutions future seems pleasant for the aspirants who want to slip into a professional career in financial analysis sector. Trends govern the market. We all have heard that phrase but never tried to analyse the future trend. The trend is shifting toward increasing the reach of technology
to a more personal level. Every industry is making efforts to bring a technological change in their work culture by adopting latest data-based technology.

Let’s see how financial analysis courses are stepping stones for a career in the financial sector.

Building a career in finance with financial analysis courses

A financial analyst is hired to do financial analysis for the client; the client can be either internal or external. A financial analyst is supposed to perform duties such as generating reports as a part of fundamental analysis principles. The role of a financial analyst is very crucial as analyst advice can shape the future of client hence the course is quite demanding.

All major financial institutions are shifting toward online platform which will surely change the curriculum of the offered course and procedure of enrolment to renowned teaching institutions. Famous CFA institute of Virginia, USA is also shifting its enrolment exams to an online platform, which will be introduced in 2021. Which is a clear indication toward rising in demand of financial analysis course? A small change will open up a large number of opportunities in finance analysis.

What is the scope of employment?

Considering the present scenario of unemployment around the world, it is no surprise that people are ready to scavenge for new opportunities. The future 2020 is certainly not promising for many people who are facing loss daily and not certain about their future decisions. Jobs like Financial analyst have always been lucrative; people are going to try their luck in every field possible. It’s is liable to see some inclination in the demand graph of financial analysis course.

From another perspective, the job of a financial analyst is to make major future decisions for the client therefore every client will want the best service for its firm. As 2020 is not showing any good intentions, the job of a financial analyst becomes very crucial and it will require higher skills to manage the upcoming situation. Considering all the spare time and availability of online skill enhancement course in the financial analysis it is evident that people are going to take more courses related to financial analysis.

How is the international locus of financial analysis opportunities?

The impact of the outbreak of CoVid-19 is worldwide. Countries like USA, ITALY and
Spain, who was considered a good economy, is suffering. The careers for financial analyst has always been open internationally, there are no boundaries for hiring candidates. It’s a golden opportunity to apply for your dream job as there is no shortage of time right now.

Conclusion

There has been tremendous growth in the jobs related to the financial sector so that the management can be coordinated effectively. Major economies are facing a shortage of skilled labour in the financial sector which increases the demand for financial analysis courses. It is expected that the investment banking is going to expand which will require the services of a skilled financial analyst so that the funds can be distributed accordingly and in a sophisticated manner.