Key Financial Analyst Skills to Get Hired

Summary

This video outlines key skills for aspiring financial analysts, including theoretical knowledge like accounting and financial math, technical abilities in Excel and ERP software, and soft skills such as error-free reporting and effective communication. It emphasizes the importance of blending theory with practical work and mastering tools like pivot tables for career success.

Takeaways

• 💼 Becoming a financial analyst is a highly-paid career with many development opportunities.
• 📚 A solid foundation in accounting is crucial for financial analysts, including understanding debits, credits, and financial statements like the P&L, Balance Sheet, and Cash Flow.
• 🔢 Financial mathematics and corporate finance are essential theoretical skills, especially understanding the time value of money and how to evaluate projects using Discounted Cash Flow models.
• 📊 Proficiency in Excel is vital for financial analysts, as it's used to build 3-Statement Models, calculate margins, and analyze data.
• 📈 Excel skills like Lookup functions, Pivot tables, and data formatting are important for organizing financial data effectively.
• 💻 ERP software proficiency is desirable, but companies often customize systems, so pre-job ERP knowledge is not critical.
• 🖥️ Mastering PowerPoint to create visually appealing presentations can enhance your professional image once hired.
• ✔️ Error-free submissions are crucial for financial analysts to build trust with business partners, and proofreading is a key soft skill.
• 🗣️ Effective communication with business partners and colleagues is essential for successful collaboration and task completion.
• 🎓 The 365 Financial Analyst program offers comprehensive training in both theoretical and practical skills needed to succeed as a financial analyst.

Q & A

What are the key skills required to become a financial analyst according to the video?

The key skills required to become a financial analyst include a solid theoretical foundation in accounting, financial mathematics, and corporate finance, as well as strong technical skills in Excel, ERP software, and PowerPoint. Additionally, soft skills like accuracy, proofreading, and effective communication are essential.

Why is accounting important for a financial analyst?

Accounting is important for a financial analyst because it provides a fundamental understanding of how to record debits and credits, prepare financial statements, and compute P&L, Balance Sheet, and Cash Flow, which are crucial for financial analysis.

How does the video suggest learning accounting concepts?

The video suggests learning accounting concepts by combining theory with practical work on assignments, such as understanding the meaning of each line item on financial statements and recording accounting transactions in case studies.

What is the significance of financial mathematics for a financial analyst?

Financial mathematics is significant because it teaches the time value of money, which is a fundamental concept in finance. It enables analysts to calculate future values of current cash flows and discount future cash flows to their present value.

How does corporate finance help in evaluating projects?

Corporate finance helps in evaluating projects by teaching how to assess their feasibility and profitability. It also provides principles for building Discounted Cash Flow models to value a firm.

Why is Excel proficiency crucial for a financial analyst?

Excel proficiency is crucial for a financial analyst because it is used to transform raw data into 3-Statement Models and present financial analysis in a well-organized manner, including calculating margins, year-on-year growth, creating charts, and grouping data.

What are some of the Excel skills covered in the 365 Financial Analyst program mentioned in the video?

The 365 Financial Analyst program covers essential Excel skills such as Lookup functions, shortcuts, data preprocessing, spreadsheet formatting, Pivot tables, and other skills necessary for financial analysis.

Why might ERP software proficiency be less emphasized in the video?

ERP software proficiency might be less emphasized because most companies customize their ERP systems differently, making it challenging to acquire ERP skills before securing a job. The video suggests that one can still receive an offer without listing ERP proficiency on their resume.

How does the video address the challenge of ERP system differences?

The video addresses the challenge of ERP system differences by creating case studies and practical projects in the 365 Financial Analyst program, where students handle raw data from ERP systems in Excel, teaching essential data organization and analysis principles.

Why is PowerPoint proficiency considered an overlooked skill for financial analysts?

PowerPoint proficiency is considered an overlooked skill because while it is not always a primary requirement, the ability to create visually appealing and coherent slides can significantly enhance a financial analyst's professional image once hired.

What is the importance of soft skills for a financial analyst as highlighted in the video?

Soft skills are important for a financial analyst because they involve providing accurate figures to business partners, which helps build confidence in their expertise. Skills like error-free submissions, proofreading, and effective communication are crucial for interacting with colleagues and ensuring trust in the analyst's work.