While there are basic financial analyst skills, successful financial analysts possess essential qualities that put them ahead of the pack. If you want to provide value to your company and to excel in your career, you should strive to develop these unique abilities. Here are 5 of those qualities for successful financial analysts.
Exceptional Leadership
Those who succeed in financial analysis are those who are self-driven and who can motivate others to move forward. Although you may not be applying to be a manager, even entry-level jobs in the finance sector demand a high level of leadership abilities. Leadership is the foundation on which effective communication, teamwork, project management and other daily tasks are built upon. Including your leadership experience in your resume may give you an edge over many other candidates. Leaders have the ability to transform.
Analysis Using Spreadsheets and Databases
To be a good analyst, you will need to learn how to use the tools in spreadsheets and databases. These tools will assist you to combine disparate data, tackle problems and make presentations to the management. Although it is important for you to have experience in using all the tools, knowing their existence and the appropriate time to use them is what matters most. Be that as it may, understanding pivot tables and query design will be an added advantage. It is also important for you to know the style and preferences of your employer. Different managers will prefer different modes of data representation. Some prefer graphs while others may like financial tables.
Technological Experience
There have been many technological advancements in business, and the financial services industry has not been spared. These developments have played a huge role in streamlining processes in this industry. This skill is increasingly becoming a necessity for all candidates. For example, most companies now want to hire candidates who are conversant with Structured Query Language. If you can acquire more than the minimum tech knowledge required, you will have an added advantage. Do you have anything else to offer apart from having the basic requirements necessary for the position you are applying for?
Understanding the Concept of Materiality
A good analyst will still be able to come up with valid conclusions even when they don’t have all the information. You should be able to have an educated gut feeling that tells you whether some information is relevant or not. Some may refer to this as the concept of cost vs. benefit. It is being able to identify instances where continuing with the analysis will not help the process. It is the reason why most accountants and programmers may have a hard time becoming financial analysts; they are so hung up on order and numbers.
Confident Decision-Making
Confident decision-making is an important financial analyst skill. As an analyst, you must understand the risks and consequences that would result from any decision you make. Most of the decisions you make will have a great impact on the company. This impact can be positive or negative. You should do proper research to ensure you have all the relevant information beforehand. It will make sure that the decision you make is the best for the firm or client.
Conclusion
Due to increased global competition and rapid changes in the industry, companies need to have stronger analytical abilities and to make better predictions to improve their financial results. Good analysts will be required to take up this responsibility. It is no wonder that it is one of the jobs with the highest starting salary . The competition will be high no doubt. You can stand out by acquiring the necessary financial analyst skills.
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