How to Become a Financial Analyst in 2025

Summary

In this video, we explore the promising career path of a financial analyst, covering the role, responsibilities, salary expectations, and key skills required. Through an analysis of over 1,000 job postings, we provide insights into the educational requirements and certifications needed for the role. The video emphasizes the importance of Excel proficiency, forecasting, budgeting, and ERP expertise, with recommendations on how to develop these skills. It also touches on salary progression and career growth opportunities. Whether you're just starting or looking to advance in finance, this video offers valuable guidance for aspiring financial analysts.

Takeaways

• 😀 Financial analysts' roles vary by company size—smaller firms require broader responsibilities, while larger firms focus on specific P&L or balance sheet items.
• 😀 Starting salary for financial analysts is around $73,000, with experienced professionals earning upwards of $90,000 annually after 4-6 years in the field.
• 😀 A university degree is not always required for financial analyst roles—38% of job listings require a bachelor's, 29% require a master's, and 32% don’t specify a degree.
• 😀 Excel proficiency is crucial for financial analysts, with 60% of job postings emphasizing the need for strong Excel skills.
• 😀 Financial analysts are expected to be skilled in forecasting, budgeting, and cost/revenue analysis—skills covered in the 365 Financial Analyst program.
• 😀 The most common certifications required for financial analysts are the CPA (12% of job listings) and CFA (3%).
• 😀 Other important skills include proficiency in Microsoft Office tools like PowerPoint (14%), Access (13%), and Word (12%).
• 😀 Larger companies require knowledge of ERP systems, especially SAP (12%) and Oracle (6%), in addition to financial analysis skills.
• 😀 Financial analysts help businesses make informed decisions by analyzing financial data, forecasting performance, and identifying profitable operations.
• 😀 Financial analysis is a great starting point in a finance career, with potential to move up to roles such as financial controller, finance manager, or even CFO.
• 😀 To enhance your job prospects, consider developing key financial skills and earning certifications—resources like the 365 Financial Analyst program can help guide you.

Q & A

What is the role of a financial analyst in small firms?

In small firms, a financial analyst typically has a broad scope of responsibilities. They are involved in analyzing revenue growth rates, product sales, profitability margins, and the financial impact of different business lines. Additionally, they work on balance sheet items and prepare budgeting projections.

How does the role of a financial analyst differ in large firms?

In larger firms, financial analysts are more specialized. They usually focus on specific Profit and Loss (P&L) and balance sheet items. For instance, they might only analyze the performance of one product line or brand, without involvement in other brands or broader financial statements.

What is the expected starting salary for a financial analyst?

The starting salary for a financial analyst is typically around $73,000 annually. However, with more experience (4-6 years), this can increase to over $90,000 per year.

Can you become a financial analyst without a university degree?

Yes, it is possible to become a financial analyst without a university degree. According to an analysis of 1,000 job postings, 38% require a bachelor’s degree, 29% require a master’s, and 32% do not specify any degree requirement. However, not having a degree may limit available job opportunities.

What percentage of financial analyst job postings require proficiency in Excel?

About 60% of job postings for financial analysts require proficiency in Microsoft Excel. Excel is considered the standard tool for financial analysis in the corporate world.

Is certification required to become a financial analyst?

While certification is not mandatory, having professional certifications such as CPA (Certified Public Accountant) or CFA (Chartered Financial Analyst) can enhance your job prospects. The CPA certification appears in 12% of job listings for financial analysts, while the CFA appears in 3%.

What ERP systems are commonly requested for financial analyst positions?

Enterprise Resource Planning (ERP) systems like SAP and Oracle are highly sought after, especially by larger companies. Approximately 12% of job listings mention SAP, and 6% mention Oracle as preferred ERP expertise.

What other skills, aside from Excel, are important for financial analysts?

Other important skills for financial analysts include proficiency in PowerPoint (14%), Access (13%), and Word (12%). Additionally, skills in forecasting, budgeting, cost analysis, and revenue analysis are crucial for the role.

How can someone improve their skills to land a financial analyst job?

Aspiring financial analysts can improve their skills by pursuing specialized training programs like the 365 Financial Analyst program. This program covers essential skills such as forecasting, budgeting, and client cost and revenue analysis.

What career progression can someone expect after starting as a financial analyst?

After starting as a financial analyst, individuals can progress to roles like financial controller, finance manager, or even Chief Financial Officer (CFO) as they gain more experience and expertise.