A day in the life of a financial analyst

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Financial Analyst is a typical entry-level role in FP&A, but what exactly does the job entail? At its heart, the role of a financial analyst is to provide the right data for effective business decision-making.

Gathering data and organizing it so that it starts to expose helpful information is the first step. The analytical tools that all accountants learn come into play, using ratios and indicators and complex modeling to analyze performance across reporting periods and between competitors. From this, forecasts and projections can be developed to deliver a framework of vital information upon which the board can hang its strategy.

The role takes new analysts along a path that tests not only their quantitative and analytical skills but also their communication skills. It is where finance professionals learn to make Excel dance for them and visualize what the data actually means for the business in the real world.

The immersion in financial analysis can even trigger a lifelong photographic memory for numbers and a keen instinct for figures that don’t fit the expected data sets. This is a native early warning system for opportunities and threats that enhance business intelligence, enriching the decision-making support that can be delivered.

What does a financial analyst need to maximize their impact in this role?

Skills for success

What, therefore, are the essential skills to brush up on for day-to-day use in the role of a financial analyst?

• Get to grips with Excel: Other spreadsheets are available, but Excel has been at the forefront of financial analysis and planning for more than thirty years and is ubiquitous in business. The chances are that every segment of the business is using simple Excel spreadsheets for planning, as they are familiar tools for non-financial managers. Whether you’re consolidating a stack of budgets, running scenario planning, or using the many macros and add-in tools for complex operations, Excel will be part of your day-to-day activities.
• Brush up on those ratios: The tools you were taught in college will stand you in good stead when interpreting comparative data across the market or historically within the business. Quantitative skills are essential in financial analysis, and the ability to dig deep for insights will build the value of strategic decision-making information.
• Learn the language of the business: Communication is vital, from your peers to the board. It’s easy to slip into financial jargon, and that throws up a barrier to effective collaboration with other functions in the business. Building relationships with the people who deliver data improves the quality of your analysis. Reporting insights in a way that can be easily understood improves the strategic response of the business to challenges and change.

Lifelong learning

This first stage of the journey is the time to gather all the tools that will advance your career. It’s the foundation of financial, planning and analysis. It’s a grounding in taking transactional data and slicing, dicing, and interpreting it to present a picture of times past or scenarios for the future.

The time spent as a junior, then the senior, financial analyst will expose you to the rigors of research, the importance of structured data, and the detail of financial modeling, whether manual or supported by automation and artificial intelligence. The daily tasks of financial analysts are the start of lifelong learning in a career where the only constant is change.

What have been your experiences of early-stage roles in FP&A? How many of the skills you now take for granted were honed during your time as a financial analyst? Let us know in the comments.

This was the fourth article in my latest series "Charting the course of a successful FP&A career". You can read the previous article(s) below.

Charting the course for a successful FP&A career

FP&A basics for finance professionals

From financial analyst to CFO

While you await future articles you can read my latest series "Planning (as we know it) is dead!" below.

Planning as we know it is dead. Long live... WHAT?

A history of planning: How did we get here?

A review of the contenders for the planning crown

Enter the new paradigm for planning

A planning approach fit for the next normal

FP&A perspectives from the frontline

Planning in the real world

Can we trust the machine for financial planning and analysis?

You can read a lot more articles about FP&A, Business Partnering, and Finance Transformation below. It all start's with “Introducing The Finance Transformation Nine Box”?where you set the ambition for your transformation. You should join the?Finance Business Partner Forum,?which is part of the Business Partnering Institute's online community.

The secret sauce of FP&A transformation?(the last article in the series "FP&A Transformation Talks")

How Finance should use its seat at the table?(the last article in the series "The Unfair Advantage of Finance")

The ultimate guide to decision-making for finance professionals?(the last article in a series about the decision-making process and how Finance should impact it).

The Mindset Change Checklist For Finance Professionals?(the last article in a series about the mindset change that finance and accounting professionals should make to become business partners)

It's Time To Decide If You Want To Be A Business Partner?(the last article in a series about the personality traits of business partners)

All Successful Business Partners Are "Leaders"?(the last article in the series about our new capability model)

Should We Keep Talking About Business Partnering??(part of a 17-article series where we deep-dive into the WHY, WHAT, and HOW of business partnering by putting it on a formula)

Your Journey To Successful Business Partnering Explained

How To Create Value Through Business Partnering

Everyone Can Adopt A Business Partnering Mindset?(part of a six-article series about FP&A Business Partnering)

From Business Partner To Working Within The Business?(part of an article series where I interview finance professionals about their careers in FP&A and Business Partnering)

Is Your Product Optimized For Value Creation??(part of a toolbox series where we look at what tools FP&A professionals should leverage to drive value creation)

How Business Partners Turn Analysis To Insight?(part of case study series where I interview business partners about how they drive value creation using real cases)

The Future Of FP&A: Two Ways To Take The Reins

What Is The Accounting Profession Paradox?

What Defines A Finance Master?

The New Career Path For Finance Professionals

How Finance People Can Be More Successful

The CFOs Roadmap To Transforming Finance

How To Become A Finance Business Partner

Financial Analyst vs. Finance Business Partner

Finance Business Partner Is A Bullshit Job

How Business Partners Keep A Plan On Track

Anders Liu-Lindberg?is the co-founder and a partner at the?Business Partnering Institute?and the owner of the largest?group dedicated to Finance Business Partnering?on LinkedIn with more than 10,000 members. I have ten years of experience as a business partner at the global transport and logistics company?Maersk. I am the co-author of the book “Create Value as a Finance Business Partner” and a?long-time Finance Blogger?on LinkedIn with 85,000+ followers and 155,000+ subscribers to my blog. I am also an advisory board member at?Born Capital?where I help identify and grow the next big thing in #CFOTech.?