Why Every CEO Needs a Financial Analyst?

Over the years, people have learned it is not a joke to start and run a business. With markets fluctuating, technology advancing at lightning speed, and stakeholders demanding results, CEOs face a constant challenge: responsible use of resources, one of the prudent financial behaviours. 

Here comes the financial analyst—that valuable specialist who plays a crucial role in contemporary business interacting with swiftly changing environments. 

But why is it necessary to have a financial analyst on a team? 

Let’s look at the specifics of their importance and why any CEO should not underestimate the importance of these roles.

What does a financial analyst do?

A financial analyst is a professional who conducts financial analysis for external or internal clients as a fundamental aspect of their role. A financial analyst serves as your guide, providing precise information that leads you in the right direction.

Take a moment to consider this:

Would you invest in a new product line without understanding its financial feasibility? 

or

Would you expand into an international market without assessing potential risks and returns? 

Without a financial analyst, these decisions can feel like shooting in the dark.

The financial analyst job description isn’t just about crunching numbers; it’s about translating raw data into insights that empower decision-making. They assess performance, identify opportunities and foresee challenges. 

Financial analysts create models to assist businesses in identifying:

• Key drivers of their operations
• Core key performance indicators (KPIs)
• Customer lifetime value (LTV)
• Budgets

The Role of a Financial Analyst in Corporate Growth

A financial analyst job description includes various tasks, from evaluating financial performance to forecasting future outcomes. 

But what does this mean for CEOs?

1. Identifying Revenue Opportunities

Financial analysts uncover hidden revenue streams by dissecting financial statements. They also spot underperforming areas that need improvement.

2. Ensuring Cost Efficiency

By analysing expenditures and ROI, they recommend cost-cutting measures without compromising quality.

3. Enhancing Investor Relations

Investors want numbers and narratives. A financial analyst helps CEOs present the company’s financial health convincingly, securing investor confidence.

Financial Analysts vs Traditional Accountants

While accountants are vital for compliance, financial analysts provide CEOs with the strategic edge needed to stay competitive.

How to become a financial analyst?

Here is your roadmap on how to become a financial analyst:

1. Education: A person interested in finance should earn a degree in finance, economics, or accounting.
2. Certifications: Seek academic certification by taking a financial analysis course that holds a recognised standing, like the CFA or similar educational programmes.
3. Skills Development: Build expertise in risk management and data analysis.
4. Experience: Gain hands-on experience through internships or entry-level roles.

One must obtain employment before a FINRA licence application becomes possible. Obtaining an employer's recommendation is required for you to function as an application candidate. Many employers use the licence completion requirement as one of the fundamental conditions for maintaining long-term positions.

Financial professionals who aim to qualify further for their profession need to earn professional certifications according to employer requirements. Among all certifications in this field, the Chartered Financial Analyst (CFA) degree stands as the most recognised certification because it originates from the CFA Institute.

To qualify for the CFA exams, candidates must meet the following requirements:

• Applicants need to show their graduation credentials, or they should be completing their final academic year at an approved undergraduate institution.
• Meet 4,000 hours to provide appropriate professional experience or education at the workplace.

• Possess a valid passport.
• Be a resident of any of the countries covered by the programme.
• Have a fair understanding of English since all of the tests are in English.
• Gaining the CFA certification proves competency and passion, making it a globally recognised credible certification.

Key Financial Analyst Skills CEOs Should Value

When hiring a financial analyst, CEOs should prioritise the following skills:

• Analytical Thinking: To understand the complex data and extract actionable insights from it.
• Communication: Make sure that the findings are clear to stakeholders.
• Attention to Detail: Trends, anomalies in financial data spotting.
• Technological Proficiency: Knowledge of Excel, Tableau, or Power BI.

A combination of these skills ensures the analyst can drive the organisation’s financial goals effectively.

Financial Analysts Skills

Future Trends: Why CEOs Must Invest in Financial Analysts

Finance as a field of business is rapidly changing; automation, big data, and AI are the driving forces. CEOs require financial analysts who can work with these trends and have mastery of these advanced tools to keep up with the competition.

Emerging Skills for Financial Analysts:

• AI and machine learning expertise to make effective forecasts about the company’s finances.
• Compliance with global sustainability goals through the integration of knowledge in ESG factors: environmental, social, and governance factors.
• CEOs hiring financial analysts with such skills are preparing their organisations for any future changes or trends in the market.

Transform Your Career with the Postgraduate Financial Analysis Programme

A CEO journey is often filled with obstacles: starting with budget management and ending with the search for a new idea. If you have a financial analyst by your side, you know you have the necessary knowledge to make bold decisions with more certainty.

To become a financial analyst or to get the right financial analyst for your company, ensure that you work towards or seek the right financial analyst skills and training. Enter the world of finance by enrolling in a well-established financial analysis course.

The 200-hour Postgraduate Financial Analysis Programme offered by Imarticus Learning is for graduates who have worked in finance roles with under three years of experience. Successfully transitioning over 45,000 learners to new careers, this top-financial analysis course provides essential knowledge aligned with CFA Level 1 positions and more. 

Acquire specific technical proficiencies such as the ability to analyse financial statements, prepare and build financial models, appraise securities, conduct research on equities, and execute transactions. Exemplary knowledge of Excel and PowerPoint will be beneficial for the finance professional.

Employ modern equipment, such as simulation tools and exercises, to enable participants to solve situations that may arise in their workplaces in a more practical way. Imarticus Learning guarantees that you get practical knowledge about financial planning and analysis.Get ahead in your future financial world by enrolling in the Postgraduate Financial Analysis Programme at Imarticus Learning.