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How to Kickstart Your Career in Financial Analyst Roles After BCom

Posted on by Imarticus Learning

So, you’ve completed your BCom, and now you’re wondering what’s next? If you’re good with numbers and have a keen eye for analysing financial trends, then a career as a financial analyst might be perfect for you.

But what does a financial analyst actually do? How do you get started in this field? That’s exactly what we’re going to cover in this guide.

Before we dive deeper, if you’re serious about this career path, you should consider enrolling in the CFA course. It’s one of the best ways to strengthen your skills and land high-paying roles in finance.

Now, let’s explore your career options!

What Does a Financial Analyst Do?

A financial analyst plays a crucial role in helping businesses and investors make informed financial decisions. This job isn’t just about crunching numbers, it’s about understanding trends, evaluating risks, and providing valuable insights to drive profitability.

Key Responsibilities:

  • Analysing financial statements and market trends
  • Assessing risks and investment opportunities
  • Preparing financial reports and forecasts
  • Assisting in business decision-making
  • Working with management to develop financial strategies

A good financial analyst helps companies make smart financial moves that boost growth and reduce risks.

How to Build a Career in Financial Analyst Roles After BCom

If you’re planning to enter a career in financial roles, here’s a step-by-step guide to help you get started:

1. Gain the Right Education

A BCom degree gives you a strong foundation in accounting, finance, and economics. But to stand out, you might need additional qualifications.

Some of the top certifications that can boost your profile include:

  • Chartered Financial Analyst (CFA)
  • Financial Risk Manager (FRM)
  • Certified Public Accountant (CPA)

2. Develop Financial Analyst Skills

To become a successful financial analyst, you need a mix of technical and analytical skills.

Some key skills include:

  • Financial modelling & valuation
  • Excel & data analysis
  • Risk assessment
  • Investment research
  • Problem-solving abilities

3. Get Hands-on Experience

Practical experience is crucial. Consider:

  • Internships at investment firms or banks
  • Working with a financial consultant
  • Handling real-world financial projects

4. Build a Strong Network

Networking is key in finance. Attend industry seminars, connect with professionals on LinkedIn, and seek mentorship from experienced analysts.

5. Apply for Financial Analyst Jobs

Once you have the right skills and experience, start applying for financial analyst jobs in banks, investment firms, and corporate finance departments.

Types of Financial Analyst Jobs

There are different types of roles within financial analysis. Let’s explore a few key ones:

1. Investment Analyst

  • Researches stocks, bonds, and other investment opportunities.
  • Works in asset management and investment firms.

2. Risk Analyst

  • Identifies and minimises financial risks in businesses.
  • Works in banks, insurance companies, and hedge funds.

3. Credit Analyst

  • Evaluates loan applications and assesses borrowers’ financial health.
  • Works in banks and lending institutions.

4. Corporate Financial Analyst

  • Manages a company’s financial planning and budgeting.
  • Works in corporate finance teams.

Here’s a comparison table for different types of financial analyst jobs:

Job Role Key Responsibilities
Investment Analyst Analysing stocks, bonds, and investments
Risk Analyst Identifying financial risks and mitigation strategies
Credit Analyst Assessing loan applications and creditworthiness
Corporate Financial Analyst Budgeting, forecasting, and financial strategy

Financial Analyst Salary and Career Growth

Financial analysts enjoy good career growth opportunities. Although a financial analyst salary can vary based on experience, industry, and location, let’s look at a general career progression:

Experience Level Job Title Potential Salary Range
Entry-Level (0-2 yrs) Junior Financial Analyst Competitive Market Salary
Mid-Level (3-7 yrs) Senior Financial Analyst Competitive Market Salary
Senior-Level (8+ yrs) Finance Manager / Director High-End Salary

For more details on salary expectations, refer to this Investopedia career guide.

Here are four additional sections you can include in your article:

Top Companies Hiring Financial Analysts

If you’re looking to land a job as a financial analyst, targeting top firms can give your career a strong start. Some of the leading companies that hire financial analysts include:

1. Investment Banks

2. Consulting Firms

3. Multinational Corporations (MNCs)

  • Google
  • Amazon
  • Microsoft

4. Financial Services & Insurance Companies

Applying to these companies can significantly boost your career prospects in finance.

Certifications to Boost Your Financial Analyst Career

While a BCom degree is a great start, additional certifications can help you stand out. Here are some of the most recognised ones:

  • CFA (Chartered Financial Analyst): Best for investment banking and asset management.
  • FRM (Financial Risk Manager): Ideal for careers in risk management.
  • CPA (Certified Public Accountant): Focuses on accounting and auditing roles.
  • FMVA (Financial Modelling & Valuation Analyst): Great for mastering financial modelling.

These certifications can significantly enhance your job opportunities and earning potential.

Common Challenges Faced by Financial Analysts

A financial analyst’s job can be demanding. Here are some common challenges you may face:

1. Handling Large Data Sets

Analysing massive amounts of financial data requires strong Excel and data analytics skills.

2. Meeting Tight Deadlines

Financial reporting and investment decisions often have strict timelines. Time management is crucial.

3. Staying Updated on Market Trends

Financial markets change constantly. Analysts must stay updated with economic trends, company earnings, and geopolitical events.

4. High Pressure & Workload

The role of a financial analyst often involves long hours and high-pressure decision-making.

Overcoming these challenges requires strong analytical, problem-solving, and time-management skills.

Tools & Software Every Financial Analyst Should Know

Technology plays a crucial role in financial analysis. Here are some essential tools used in the industry:

  • Microsoft Excel: Essential for financial modelling and data analysis.
  • Bloomberg Terminal: Used for market research and trading analysis.
  • Tableau & Power BI: Data visualisation tools for financial reporting.
  • Python & R: Useful for quantitative analysis and automation.

Mastering these tools can give you an edge in your career as a financial analyst.

Conclusion

If you want a strong career in finance, becoming a financial analyst is a great choice. With the right skills, qualifications, and experience, you can land some of the best roles in the industry.

To fast-track your career, consider enrolling in the Chartered Financial Analyst (CFA) Certification Program. It’s one of the most respected certifications in finance and can significantly boost your job prospects.

FAQs

  1. What are the key financial analyst skills needed for success?
    A strong financial analyst must have skills like financial modelling, data analysis, investment research, and risk assessment.
  2. Can I start a career in financial analyst roles after BCom?
    Yes! A BCom degree is a great starting point. Additional certifications like CFA can enhance your chances.
  3. What are the different types of financial analyst jobs?
    You can work as an investment analyst, risk analyst, credit analyst, or corporate financial analyst.
  4. Do I need an MBA to become a financial analyst?
    No, an MBA is not mandatory. A CFA or other finance certification is often enough.
  5. Where can I find financial analyst jobs?
    Check online job portals like LinkedIn, Indeed, and Glassdoor for opportunities.
  6. What industries hire financial analysts?
    Financial analysts are hired in banking, investment firms, insurance, corporate finance, and consulting.
  7. Is CFA better than MBA for financial analysts?
    It depends. CFA is more finance-focused, while an MBA covers broader business topics.

What Are the Benefits of Being a Financial Analyst?

Posted on by Imarticus Learning

A financial analyst is one of the most prestigious career options in the financial services industry. Given the growing importance of data and the need to analyze it for obtaining valuable information, there is an unprecedented need for professionals who can deal with data. The role of a financial analyst is diverse and requires high analytical skills along with good quantitative acumen.

The job entails gathering data, organizing it, conducting a thorough analysis, making predictions based on the analysis and developing recommendations. There is a high demand for financial analyst courses given the value it adds in terms of providing relevant industry-specific knowledge and practical exposure to the work. The role of a financial analyst is held in high regard given the value it adds to the organization.

A financial analyst is responsible for gathering vital information about the industry and creating strategies to grow the business, they have a huge role to play in an organization’s decision-making process. They are also responsible for talking with various stakeholders to the company and make the required analysis. Let’s delve deeper into some of the most exciting benefits of being a financial analyst.

Benefits of being a Financial analyst

People working in the capacity of a financial analyst are responsible for unleashing actual insights about the company’s financial performance and overall outlook; they help to find out the driving factors that are helping with the growth of an organisation. This helps them obtain in-depth industry knowledge and can open new opportunities for them.
The role of a financial analyst is very dynamic and multi-faceted. It also involves meeting with various stakeholders to the business. This can help you expand your professional network and also help you develop personal connections that can be leveraged later if you might need any assistance in the future.

The financial analyst job is considered among the most rewarding career opportunities. The remuneration offered to a financial analyst is usually higher than what other professionals might get at the same level. In addition to the fixed remuneration, financial analysts are also entitled to a decent bonus and commission.

The demand for financial analyst professionals is growing in double digits and has a plethora of opportunities for people who want to pursue a career in finance. In addition to the finance sector, financial analysts are also needed in other industries that rely on using data science to grow their businesses.

Financial analysts have a steep learning curve and require being up to date with new information. This helps you build your knowledge base and makes you better prepared for future job roles. It also keeps you updated with the new economic activities and technological changes in the domain.

Given the nature of the job of financial analysts, job security is an added advantage. Financial analysts are highly skilled professionals who have access to crucial company information. The sophisticated nature of this role makes analysts less-prone to job loss in uncertain times. It is also difficult and expensive for the company to hire a new professional in a short period.
One of the best things about being a financial analyst is the work-life balance that you get. People in the finance industry often complain about the absence of work-life balance. Investment bankers earn more but at a much higher personal cost, they work at least 70-80 hours per week. However, the role of a financial analyst only demands normal business hours.

Working in the capacity of a financial analyst for an organization has numerous benefits. From work-life balance to crucial company information it has a whole lot to offer that other jobs normally do not. It is also among the most rewarding career opportunities.

Also Read: Future of Financial Analyst In India

How Much Does A Financial Analyst Make?

Posted on by Imarticus Learning

The job of a financial analyst is one of the most sought-after jobs in the field of financial services. The crux of the job as a financial analyst is to study data, find out the various opportunities and analyse the outcomes of the various decisions taken and investments recommended and made.

The job of a financial analyst has both a senior as well as a junior position to offer in any firm. The position of a financial analyst opens doors to various other career opportunities. The field of financial analysis is highly competitive and aspirants may find it harder to fit into the field.

Taking up a financial analyst course online would make the nitty-gritty of the position a lot clearer to aspirants white also equipping them with the necessary tools required to succeed in the field. Thus taking a financial analyst course is considered beneficial and is highly advised.

Let us dive in-depth into what a financial analyst is, what they are required to do and about financial analyst salary.

What Exactly is a Financial Analyst?

A financial analyst is responsible for analysing and looking into financial data thus using the findings to aid organisations to improve their business choices and decisions. Many a time, the analysis done by a person in this position is done to aid better investment decisions for the company.

Thus an analyst must research the economic conditions while also looking into the fundamentals of the organisation in order to make predictions. These predictions would be concerning various aspects of business and various industries. Based on this a course of action is also suggested.

Being aware of the various novel developments in their respective field while also coming up with financial models to foretell the future economic environment for a wide range of variables is the key part of this job.

What Does It Take To Be a Financial Analyst?

Even while being a high paying career as well as a career that gives way to a large number of opportunities, compared to other jobs with similar benefits, the pressure of having rigid and defined qualifications is much lesser. The specifications wholly depend on your specific employer and duties.

To qualify as a financial analyst, possessing a bachelor’s degree, ideally majoring in economics, finances and statistics, is crucial. Other majors that are also looked at are math, engineering and in some places even a major in biology, that is, if aspirants are interested in pursuing a career in analysis in those specific fields. As mentioned earlier, this field is highly competitive and undergraduate degrees don’t stand out very much, thus making it very difficult to be considered for the position with anything lesser than a bachelor’s degree.

Larger investment banks prefer employing people from elite institutions, thus paying their first-years with a very high financial analyst salary.

How Much Do Financial Analysts Make?

The yearly financial analyst salary for someone only starting out can come close to or go up a little more than a whopping 48,500 dollars.

The biggest reason for the popularity of this position is the average financial analyst salary. People in this field are paid very well and for good reason. Owing to the competitive nature of the field, employees need to work very hard. The job entails attending a large number of meetings and a lot of travelling.

Sometimes employees may need to stay for additional working hours. The job requires employees to remain up to date with novel changes in the economic climate while also thinking of ways to keep the organisation at the top of the financial race.

Also Read: What is Financial Analyst Course

What Does a Financial Analyst Do

Posted on by Imarticus Learning

In the contemporary landscape, data science is at the core of every progressive organization that relies on technology to carry out its operation. This is also true for players in the banking and finance industry. The banking and finance industry has undergone a massive transformation in the last two decades.

With the advent of the Fintech companies, the traditional banking systems have been forced to rethink how they serve their customers. Traditional banking has been replaced by digital banking and transactions using smart devices have gained the front seat. Data science is at the centre of this revolutionary technology. It has made it easier to analyze the financial stand of the organization and the market volatility.

Data has helped them customize their services as per the needs of an individual customer. It has helped to improve the services of all players in the finance industry by giving them insightful information as to what the customers want. The finance and technology amalgamation has leveraged the power of data and internet to make everything smarter. It has made it easier to predict future trends using historical data.

Now, how do they use data and who helps them obtain valuable insights from seemingly irrelevant data? A large part of this process is carried out by financial analysts who have a dynamic role to play in the success of a financial organization.

Let’s dig deeper into what financial analysts do and how do they help the companies with their expertise.

Role of a Financial Analyst

The role of a financial analyst is very diverse and entails a range of activities that need to be carried out. The role of a person working in the capacity of a financial analyst is multi-faceted. It requires a range of technical skills and good quantitative acumen to succeed in the role.

The wide range of chores in the purview of a financial analyst includes accumulation and organization of data, analyzing historical results, making future projections, preparing reports, making a recommendation. Let’s peep into the details.

Gathering and Organizing data

This is the most rudimentary task that a financial analyst needs to perform. Any analysis requires a collection of relevant data and organizing it as per their needs. These data generally includes accounting data, stock price information, macroeconomic data and other quantitative data that helps to make a detailed analysis.

These data sets are collected from the internal database of the company or third party research providers like Bloomberg. Once the relevant data is obtained it is organized and arranged using a spreadsheet or some other database. The organization process also includes categorizing data and applying formulas and functions.

Analyzing financial information

Once the data is gathered and organized into a database, the actual analysis process starts with the evaluation of past data records and results. The analysis process includes inspection of various financial ratios and metrics like gross profit, net margin, return on equity, earning per share, liquidity ratio, growth rate, inventory turnover ratio, etc.

Make future projections

Once the historical data and past results have been analyzed, the analyst is required to make future projections and predict general trends related to the company’s financial performance. Some of the mainstream projection methods that are applied to make predictions include regression analysis and year over year growth rates method. Other methods include bottom-up approach, bottom-down approach, etc.

Building recommendations
The process of predicting future trends and making projections is followed by building recommendations and providing suggestions on how to improve the operations of an organization. These suggestions might include ways to cut cost, identifying new investment avenues, methods to achieve operational efficiency, ways to improve customer satisfaction, etc.

Why Is Chartered Financial Analyst a Good Career Option?

Posted on by Imarticus Learning

In recent times, Chartered Finance Analyst (CFA) is a designation which is quite revered and regarded by most as a key certification for professionals in the areas of portfolio management and research.

The chartered financial analyst program is a certification from the CFA Institute. It is a globally regarded certification. It is essentially a self-study methodology, graduate level program for professionals who want to pursue a career in investment. A person coming out of any discipline or academics can pursue the CFA program.

Applications to the program are usually from students and undergraduates to an early professional who intent to get a boost to their career. Although it is important to note that just getting a certification will not guarantee the same.

Passing all the three exams of CFA in itself is a very daunting job when compared to the efforts and commitment of the time required as against other management programs like the MBA. In fact, there are many MBA pass outs and CA’s who join CFA to get into core investment banking jobs. CFA gives a great technical grounding and offers broad-based scopes suitable for investment banking, research analyst, equity research and portfolio management.

The CFA course focuses on ethics, portfolio management, accounting, corporate finance, fixed income and equity investments, so basically if one does not have a very specific choice but needs to build their career in the field of finance then they should opt for the CFA certification as it is broad-based, opening many career opportunities.

Passing a CFA exam shows that the person pursuing the same has the ability to show commitment, tenacity, comes across as a professional with resilience, and rigour. In addition to the learnings from the course, the charter holders are also considered internationally mobile as well due to their association with the global professional network.



Some of the most common jobs taken by the CFA professionals

Portfolio Management:
Since CFA focuses on essentially training you on portfolio management skills, this job becomes a no-brainer for most pass outs. Under this profile, you are responsible for making financial/investment-based decisions for people who have given the control of their money to you or to your company.

Research Analyst:
Here the profile is responsible for analysing the financial transactions and records of the firm for its clients. Here you need to prepare your observations and reports and primarily have an insight of what the client would want to know about the financial health of the organization in such a way that nothing essential is overlooked before making any strategic decisions.

There are many other nomenclatures for this role within the organization, such as investment analyst, rating analyst, financial analyst, equity analyst, to name a few.

Consultant:
Here the person needs to provide suggestions that will benefit the firm with professional advice. The CFA course covers corporate finance which will assist the professional to make alternative decisions and suggestions to the third party or the client satisfying their requirements.

Accountant/Auditor:
Here you are required to keep a track of all financial footprints and documents of the business or company that you are associated with.

Investment Banking Analyst:
Here a person needs to check all possible pit stops, analyse, evaluate, all possibilities before any investment is made. The person usually is responsible for directing and making the firm aware of mergers and acquisitions. The task can be efficiently performed by any CFA pass out as the course has a section on corporate investment, equity investment, economics and more which prepares them to handle such requirements.

These are just a few opportunities out of the many that you can take advantage of if you wish to pursue the CFA certification.

So to conclude, it is quite obvious that in recent times many organizations and individuals alike are getting highly interested in CFA. The fact that a CFA certification will benefit the organization and the individual in revenue growth and career growth, it is perhaps why most organizations are also considering sending employees usually from the start up a level for this certification as the long-term advantages cannot be ignored.

It is then true to say that the CFA designation does distinguish the charter holders from other counterparts in the eye of professionals and investors. As a successful CFA charter holder has already proved the test of time and their ability and intention of commitment to conducting their professional life according to high professional standards.

What are the Interview Questions for Financial Analyst?

Posted on by Imarticus Learning

Are you preparing for the financial planning and analysis (FP&A) job role? Then you should know the possible financial planning and analysis interview questions about the industry. So, it is also crucial to know about financial planning and analysis (FP&A) trends and their essential concepts. Therefore, prepare for the financial planning and analysis interview questions and present yourself professionally in front of the hiring manager.

We have clubbed financial planning and analysis interview questions based on our extensive financial planning and analysis (FP&A) research.

We have also included financial planning and analysis professional interview questions suggested by experts.

Let’s take a look at some of the most relevant financial planning and analysis interview questions

The aspirant should prepare for these before sitting in an interview for the financial planning and analysis (FP&A) job role.

What are the three financial statements?

The three financial statements are the balance sheet, cash flow statement and income statement. You can elaborate on it by stating the definitions of all three. A balance sheet shows a company’s assets, liabilities, and shareholder equity. Whereas an income statement shows the company’s expenses and sales revenue. Finally, the cash flow statement depicts the cash flows generated by operating, investing, and financing activities over time. 

What effect does an inventory write-down have on the three statements?

An inventory write-down affects the balance sheet and the income statement. A write-down is an expense that reduces net income and tax liability. A decrease in net income lessens a company’s retained earnings. And, that reduces shareholder equity on the balance sheet.

Why do you want to be financial planning and analysis (FP&A) professional?

Start with talking about the skills needed for the job. For example, financial planning and analysis (FP&A) professional requires a high level of skills. These are problem-solving, good data handling, and interpreting skills. In addition, you must have a good understanding of financial analysis, modeling, and forecasting. Phrase your answer rotating around these critical skills, and you will be able to impress the hiring manager.

What is the difference between budgeting and forecasting?

Budgeting depicts the expected revenues a company wants to achieve in the future. Whereas financial forecasting estimates the income or revenue generated in the future.

What is EPS and how to calculate it?

EPS stands for Earnings per Share. It is the amount of income generated for each share of the company. The preferred dividends paid are subtracted from the total net income to calculate earnings per share. The earnings would be divided by the balance sheet’s total number of outstanding shares.

What do you know about financial modeling?

It is a quantitative analysis tool that helps figure out asset pricing and assists with other general financial analyses. It helps to make future predictions based on the organisation’s historical and present financial records. Financial modeling also help in business valuation, budgeting, and strategic planning.

What are the main components of a cash flow statement?

A cash flow statement helps us understand the business’s cash flow position. It gives detailed information regarding the cash flowing in and out of business. Therefore the cash flow statement has three main components cash flow from operating activities, cash flow from investing activities, and cash flow from financing activities.

What does it take to be an outstanding financial planning and analysis (FP&A) analyst?

You can discuss the skills required to become the best financial planning and analysis analyst. The three essential qualities of becoming the best financial planning and analysis professional are as follows.

  1. Analytic Skills: Collection and organisation of data for analysis. Therefore, recommendations also come in this, and here is the chance for financial planning and analysis (FP&A) professionals to shine. 
  2. Art of presentation: Analysis, interpretation, and recommendations are not enough. Successful financial planning and analysis (FP&A) professionals should also present the required information well.
  3. Soft Skills: A world-class financial planning and analysis (FP&A) professional should have the best communication skills. This requires confidence while communicating, effectively articulating the thoughts, and being able to read the client’s mindset. Added advantages are being politically sound and marketing yourself.

Give us an example where a company has positive cash flow but is not financially sound.

It can be a tricky one. However, you can state that one such instance could be a company selling off inventory but delaying the number of payables.

What essential tools do technical analysts use to analyse a company’s stock?

While conducting technical analysis, analysts generally use charts. So, they typically use line charts, bar graphs, and point charts. They are required to assess the performance of a company’s stock.

What do you understand by cost accountancy?

Cost accountancy is the application of cost accounting principles and guidelines. These are used to calculate the cost of production by identifying the fixed and variable costs associated with manufacturing products. Therefore it is a branch of managerial accounting that helps in the decision-making process for the business.

Final Take Away

We hope these financial planning and analysis interview questions help you crack the interview. Regular preparations and updating your knowledge is a must. In addition, reviewing your performance is significant for appearing and getting selected for the financial planning and analyst role (FP&A). You can also check out our blog, Tips For Cracking Financial Analyst Interview, for interview prep. All the best.

Career Advice: Financial Planner or Wealth Manager!

Posted on by Imarticus Learning

Introduction

A financial planner and a wealth manager both come under financial advisory jobs. A financial planner helps in managing day to day finances of their clients whereas a wealth manager helps in preserving the current wealth and adopting sustainable development so that the financial resources may be preserved for the future.

There are a lot of differences in both these job roles and similarities too. It is up to one’s interests and capabilities that which one he/she chooses. Let us see both these careers in detail and compare them.

Job Roles

Financial planners are concerned with lifestyle planning. Their target audience is generally middle-class people or low-level companies. They help people in meeting the ends and give them advice on how to invest money in their lifestyle while saving too.

Wealth Management coursesTheir job duties include saving money for college, budgeting, retirement planning, insurance planning, etc. Their clients are normal people who want to use their income in a planned way so that they could achieve their life goals or some short-term goals.

A wealth manager on the other hand deals with HNI (High Networth Individuals) clients or Ultra HNI clients. A wealth manager helps rich businessmen/people to preserve their wealth and adopt a sustainable development process. A wealth manager analyses the market and advises his/her clients on investment opportunities. They are involved in chores like capital/revenue planning, estate planning, risk identification & management, etc. They help their clients in identifying the risks of investing in any new venture. They help in sustainably using financial resources & services.

Education & Skills Required

Wealth managers & financial planners tend to do a bachelor’s degree in economics, accounts, finance, or mathematics. However, the certification courses vary for them. A wealth manager generally does a CPA (Certified Public Accountant) course whereas a financial planner prefers a CFP (Certified Financial Planner).

Wealth Management coursesThere are a plethora of Wealth Management Courses available on the internet. However, any professional in the wealth management or financial planning sector can do both of these certification courses as there is no necessity for any one of them for getting a job. These certification courses boost your skills.

The skills needed are almost identical in both sectors. The major skills needed in the wealth management & financial planning sector are analytical skills, market analysis skills, communication skills, forecasting skills, networking skills, etc. As a wealth manager, you will need to have a large network of HNI or Ultra HNI clients in the market as compared to a financial planner.

What to choose?

If you have a natural market of HNI/Ultra HNI clients, then go for a Wealth Management Career otherwise you can opt for financial planning. Wealth management requires more networking skills than a financial planner. The salaries of wealth managers are also higher than those of financial planners.

The best criteria would be to aim for a wealth manager and if things don’t work out then go for financial planning because the skills & education required are almost identical in both fields. This was all about career advice related to wealth management & financial planning.

Which One Is a Good Career Option, Financial Analyst or Commercial Banking?

Posted on by Imarticus Learning

Understanding Commercial Banking

Commercial banks specialise in providing services such as accepting deposits, providing business loans and also offer basic investment products which don’t need much investment guidance. Commercial banking is often a division of a big bank and sometimes it is a stand-alone special unit. The main difference between commercial banks and retail banks is that it majorly deals with corporates, medium & large sized businesses in addition to the general individuals.

Both private sector and public sector banks are included in the commercial banking category. The commercial banking performs a wide range of functions including accepting deposits, providing loans and credit services, credit creation, agency functions, etc. While providing credit to customers the commercial banks do not advance cash rather they create a deposit account for the borrowing party to withdraw funds. It helps to better channel the limited funds available at a bank.

Commercial banking careers are considered one of the most sought-after career roles and invite a lot of competition. The most prominent roles and positions offered at commercial banks include account manager, loan officers, sales associates, trust officers, branch managers, etc. The remuneration for commercial banking careers varies greatly depending upon your position and experience. One can get an entry-level role by completing graduation in a relevant field such as commerce, economics, mathematics, etc. Managerial roles require post-graduate degrees such as an MBA.

Role of a Financial Analyst

One of the primary responsibilities of a financial analyst is to conduct a financial analysis of businesses to paint a comprehensive financial picture of the organization. Financial analysts use tons of relevant financial data including the historical and current records to assess outcomes for business decisions and find profitable investment avenues. It helps companies to assess the feasibility of a particular project by predicting the future revenue and expense from the operation.
Financial analysts are required to have good quantitative acumen and analytical skills. Financial analysts use relevant financial data to help companies make important financial decisions. Financial analyst job roles are considered as a prestigious one and it often has very well defined roles and responsibilities providing a good work-life balance. The requirements for the role of financial analysts vary depending on the organisation and the exact position that you are offered.

There are multiple job roles that you can opt for depending upon your interest including equity analyst, treasury analyst, investment banking analyst, etc. The best course of action to get entry-level jobs as a financial analyst is to complete your graduation in a relevant discipline such as commerce, statistics, economics, etc. If you are already working at a job and want to advance your career as financial analysts, you can opt for financial analyst course by reputed institutions like Imarticus Learning that also provides job assurance with the top-notch companies in the field.

Which One You Should Choose?

Now that we know what both the job roles entail, choosing between a commercial banking and financial analyst career will be easier. It is a very subjective matter and requires personal evaluation. The very first thing to keep in mind while choosing a particular career option is your interest. Do you like interacting with customers or do you like working behind the scenes churning numbers? If you prefer the former then you should opt for a commercial banking career and if you choose the latter then financial analyst is a good fit for you.

The second most important thing to keep in mind while choosing your career is the skills you have. Your hard and soft skills combination plays an important role in finding out the most suitable career option for you. In a commercial banking career, you need to have excellent communication and sales skills, you should have a problem-solving approach and you should be customer-oriented. For the role of a financial analyst you need to be good with numbers and have a knack to trends and patterns, you should possess good analytical and presentation skills too. You can use these guidelines as parameters to find the most suitable career option for yourself.

Also Read: Difference Between Business Analyst & Financial Analyst

What Is the Pay Progression for a Career in Financial Analysis?

Posted on by Imarticus Learning

Financial analysis is important to predict the financial impact of any business decision. Financial analysts use business data to forecast and to decide the impact of any financial decision. They provide periodic reports to their clients which helps in keeping business in profit.

There are senior as well as junior roles in the financial analysis sector. Often, financial analysts work on a junior level and open a lot of job roles for them by their performance.

Let us see the pay progression for a career in financial analysis.

What is a Pay Progression?

A pay progression is an increase in wages/salary because of the upliftment of the job role. For example, a junior financial analyst moves on to a senior role and is provided a hike in salary. It is different from salaries increased due to inflation or bonus given to the employees by any particular firm/company. Pay progression does depend on individual performance and career growth.

Pay Progression for a Career in Financial Analysis
If you have joined a firm as a junior financial analyst, you will be working under a senior analyst. One can directly become a senior analyst if he/she has an advanced degree in finance and analysis. Many junior analysts work on junior roles and then leave to gather advanced degrees after gaining a little work experience. According to payscale.com, a junior analyst in the USA earns around $50,000 per year and according to surveys conducted by indeed, a senior financial analyst earns around $72,000 per year in the USA.

There are a lot of job roles in the financial analysis sector like financial advisers, financial managers, budget analysts, junior and senior analysts, etc.

Business Analyst Online TrainingThe upward mobility is quite high in the field of financial analysis and one can build a good career with his/her performance and results. One can work hard and can rise to good positions like the fund manager, chartered financial analyst, etc. which have high salaries.

The financial analyst course must help your clients to make better financial decisions. A good financial analyst helps a company/firm in avoiding those business decisions which could result in financial instability. The more profit you provide to your clients, your reputation as a financial analyst will grow and you can move to senior job roles quickly.

Career Path in Financial Analysis
The major job roles in terms of hierarchy from junior to senior job roles in the financial analysis which will give you an idea of pay progression in this field are as follows:

• Junior Financial Analyst is the basic step in the field of financial analysis. A junior financial analyst forecasts possible investment opportunities & analyses the business decisions and produces detailed financial reports.

• Senior Financial Analysts are the ones who have an advanced degree in the field of finance and have some work experience. They review financial reports and make recommendations.

• A director is one who has massive work experience in the field of finance. He has a team to guide and coordinates audits.

• Chief Financial Officer (CFO) is responsible for managing debt, equity, and financial forecasting. According to Investopedia, the average salary of a CFO in the USA is around $371,548 per year which is massive.

Conclusion
One has to perform well in terms of advice, reports given to his/her clients to grow his/her financial analysis career. There is a lot of upward mobility in this sector thus opening the path for a hike in salaries. One can take up financial analysis courses available on the internet via elite sources to boost his/her knowledge and to apply it in their job. This article was all about pay progression and career opportunities in the financial analysis sector.

How Do You Become a Financial Controller?

Posted on by Imarticus Learning

Are you great with number crunching and have excellent organizational skills, then this job should be what you are aiming at! A financial controller makes the most important decisions in the business with regard to the finances of the company. A trustworthy job as you will be handed the financial reins of the control of inflow and outflow of cash, you will definitely see the positive impact that your hard work will make on the company’s turnover and growth.

Some previous experience as an accountant or in a similar role of managing finance is a prerequisite to be considered for the job of a financial controller. The job demands a high level of knowledge, skill, dexterity, confidence, responsibility, and accountability. If this sounds like the path, you want to take read on to find out more about the roles and responsibilities, prerequisites, salary, hours of work and more.

What does a Financial Controller’s job entail? Are you cut out to embark on a career in that domain. Well as a financial controller you will be responsible for the accounting operations of the company and reporting to the Finance Director. Preparing financial reports, documenting accounts, corporate accounting, budgeting, forecasting- you will be involved in every aspect of the organization that remotely requires money.

You will be managing the financial transactions of a company right from accounts payable to payroll. Irrespective of which industry you work in- every company needs a Mathematics wizard to manage their finances and with an interest and a financial analyst course you could be on the right path to becoming a Financial Controller.

You could complete a finance or accounting degree for e.g., Bachelors in Commerce or Bachelors in Business Management with a specialization in finance which would take you about years. You could also earn a Master’s degree to have an added advantage. If you do not want to take the university route, you can learn by enrolling in a Financial Analyst certification course offered online.

Your employer may fund this for you while you train to become an accountant, and then you can work your way up the ladder. Financial Analysis courses in Hyderabad offer great study options for those who want to move progressively towards becoming a Financial Controller.

There is good news for those aiming to be Financial Controllers- it is a typical 9-5 job with weekends and bank holidays to yourself depending on the organization. Qualified financial controllers can earn anywhere between Rs 15,00,000 – Rs 35,00,000. The range could be higher depending on the size of the company and the experience of the candidate.

Once you gain a degree or even experience in accounting or a financial position, it is important to leverage your expertise and build your supervisory skills to become a Financial Controller. Being in control of finance means solving complex issues, dealing with pressurizing situations with an analytical mind. It is important to be exceptionally organised to meet deadlines and comply with regulations. Your primary responsibility will be to see the “bigger picture” and the financial health of the organization rather than just day-to-day numbers.

If you have your sights set on this role, then just get yourself a role in accounting or finance, get certified with a qualification, work hard and learn the ropes to prove yourself worthy of single-handedly managing the funds of a company.