For early- to mid-career professionals with a passion for numbers, becoming a Financial Analyst can be a rewarding path. Financial Analysts play a key role in guiding business decisions by crunching data and forecasting outcomes. This article will cover what a financial analyst is, the skills you’ll need, the demand for this role, typical salaries, and the main paths to becoming a financial analyst. Whether you’re aiming for a remote position or an in-office role, read on for a guide to launching your Financial Analyst career.
What is a Financial Analyst?
A financial analyst is an entry- to mid-level finance professional responsible for examining financial data and trends to help organizations make informed business decisions. In practice, financial analysts handle tasks like budgeting, forecasting, and financial modeling. They analyze financial statements (income statements, balance sheets, cash flow statements) and market trends to evaluate a company’s performance or an investment’s potential. By interpreting the numbers, they provide insights and recommendations—such as whether to invest in a project, cut costs in certain areas, or adjust strategy based on financial projections.
Financial analysts can work in a variety of settings. Many are employed in corporate finance departments (often called Financial Planning & Analysis, or FP&A), where they help manage a company’s budget, evaluate new initiatives, and create reports for senior management. Others work in the financial services industry (for example, at banks, investment firms, or insurance companies) analyzing stocks, bonds, or other investments. In a SaaS company, for instance, a financial analyst might focus on subscription revenue trends and customer acquisition costs to advise on growth strategy. Despite the different contexts, the core of the role is similar: using financial data to guide decision-making. Financial analysts typically report to a finance manager or director and collaborate with various teams (like accounting, sales, or operations) to gather information and present their findings. It’s a role that builds a strong foundation in understanding how money moves and grows within a business.
Financial Analyst Skills
To succeed as a financial analyst, you’ll need a mix of technical expertise and soft skills. Here are some of the most important skills for the role:
- Financial Modeling & Analysis: The ability to build and work with financial models (often in spreadsheets) is fundamental. This means projecting revenues, expenses, and cash flows, and running “what-if” scenarios. Strong quantitative analysis skills help you interpret data and make forecasts about future performance.
- Accounting & Financial Reporting Knowledge: A solid understanding of financial statements and accounting principles (such as GAAP or IFRS) is essential. Financial analysts must know how balance sheets, income statements, and cash flow statements work so they can analyze them and spot trends or red flags.
- Proficiency with Excel and Financial Software: Excel is a financial analyst’s best friend. You should be comfortable with advanced Excel functions, pivot tables, and charts. Many analysts also use tools like financial databases (Bloomberg, SQL databases) or business intelligence software (Tableau, Power BI) to gather and visualize data. Being tech-savvy with these tools makes analysis more efficient and insightful.
- Analytical & Critical Thinking: Financial analysts need to interpret data, identify patterns, and solve problems. You’ll often be tasked with answering complex questions (e.g., “Why are profits down this quarter?” or “What happens if we increase the marketing budget by 10%?”). An analytical mindset helps you break down problems and find data-driven answers.
- Attention to Detail: Working with financial data requires accuracy. Small errors can lead to incorrect conclusions or costly mistakes. Diligence in checking numbers, reconciling data, and ensuring calculations are correct is crucial. A keen eye for detail also helps in spotting anomalies or inconsistencies in financial reports.
- Communication & Presentation: An analyst must communicate their findings clearly. This includes writing reports and creating presentations with charts and summaries that non-financial stakeholders can understand. Good verbal communication is also important for meetings or calls where you explain financial concepts or persuade decision-makers based on your analysis.
- Business Acumen & Industry Knowledge: Great financial analysts don’t just know the numbers—they understand what the numbers mean for the business. Having general business acumen and, ideally, knowledge of the industry you’re working in (be it SaaS, banking, healthcare, etc.) allows you to put financial data in context. This means knowing how a company makes money, what factors drive success in the sector, and staying aware of economic or industry trends that could impact the finances.
Financial Analyst Employer Demand
There is steady demand for financial analysts across many industries. Every medium to large organization needs professionals to analyze finances and guide strategic decisions, so analyst roles remain plentiful. In fact, the U.S. Bureau of Labor Statistics projects employment of financial analysts to grow at about an average pace (and slightly above average for some specialties) over the next decade. This means consistent opportunities in the field as companies large and small require experts to handle budgeting, forecasting, and investment analysis. Businesses rely on financial analysts to help allocate resources wisely and improve financial performance, which makes these roles continually important even as markets change.
SaaS companies (Software as a Service) and tech firms are no exception—if anything, they are driving strong demand for financial analysts. Tech startups and established SaaS enterprises hire financial analysts to track subscription revenue, monitor key SaaS metrics (like monthly recurring revenue and customer churn), and ensure the company’s growth is sustainable. These companies often offer competitive salaries and benefits to attract talent, since skilled financial analysis is vital for their expansion. Moreover, many employers today offer financial analyst positions with remote or hybrid work options, especially in tech-savvy sectors. This means you might find roles that let you work from home, analyzing data and collaborating with teams virtually. If you’re aiming to work in the tech industry, using a niche job board such as The SaaS Jobs can be valuable. Specialist job boards like this focus on SaaS-related roles, helping you discover financial analyst positions (including remote-friendly jobs) at software companies that you might not see on general job sites.
Financial Analyst Salary
Salary expectations for financial analysts depend on several factors, including your experience level, the industry you work in, and your geographic location. Generally, an entry-level financial analyst will earn a solid starting salary that grows substantially with experience and performance. For example, in the United States the average financial analyst earns around $80,000 per year, while in the United Kingdom the average is about £40,000 annually. However, these figures can vary widely. A financial analyst working in a high cost-of-living city or in a lucrative sector (such as technology or investment banking) may earn toward the higher end of the range, especially as they gain experience. Those in smaller cities or in less high-paying industries might be toward the lower end. Below is an approximate annual salary range for financial analysts in a few major countries:
| Country | Average Salary Range (Annual) |
|---|---|
| United States (USD) | $60,000 to $85,000 |
| United Kingdom (GBP) | £30,000 to £50,000 |
| Canada (CAD) | C$55,000 to C$75,000 |
| Australia (AUD) | A$65,000 to A$90,000 |
Note: These salary ranges are rough estimates based on current market data (as of 2025). Actual salaries can vary depending on your qualifications, the demand in your region, and the specific industry. Financial analysts in high-paying sectors like tech or finance, or those who receive bonuses and stock options (common in public companies and startups), might see total compensation above these ranges. Likewise, an early-career analyst may start below the average but can quickly increase their earnings with a few years of experience and strong performance.
Ways to Become a Financial Analyst
Becoming a financial analyst typically involves a combination of education, practical experience, and professional development. Here are the main paths and steps to launch your career as a financial analyst:
- Earn a relevant degree: Most financial analysts hold at least a bachelor’s degree in a field like finance, accounting, economics, or business. This formal education provides a foundation in financial principles, economics, and often some accounting and statistics. In many cases, a bachelor’s degree is required for entry-level analyst roles. During your studies, you’ll learn about financial markets, corporate finance, and how to analyze financial statements—knowledge that is essential for the job. Some analysts later pursue a master’s degree or MBA to advance to higher roles, but for starting out, an undergraduate degree is typically enough.
- Gain practical experience (internships or entry-level roles): Hands-on experience is invaluable. Many aspiring financial analysts complete internships during college or shortly after graduation. Interning at a bank, investment firm, or a company’s finance department lets you apply what you learned in school to real-world scenarios. You might assist with tasks like updating financial models, preparing reports, or doing research on market conditions. If an internship isn’t available, entry-level roles such as a junior analyst, finance assistant, or even a related position like an accounting or data analyst role can provide relevant experience. The goal is to get exposure to financial analysis work—this builds your skills and strengthens your résumé for future Financial Analyst positions.
- Consider professional certifications: While not always required for a financial analyst position, earning a certification can boost your credentials and knowledge. One of the most respected credentials in this field is the CFA (Chartered Financial Analyst) designation, which is especially useful if you’re interested in investment analysis or portfolio management. The CFA is a rigorous program with three levels of exams, and it demonstrates expertise in investment analysis, economics, and ethics. For those more focused on corporate finance or management accounting, certifications like the CMA (Certified Management Accountant) or CIMA (Chartered Institute of Management Accountants, common in the UK) can be beneficial. These certifications typically require passing exams and sometimes a certain amount of work experience. Obtaining a relevant certification can set you apart from other candidates and may open up more opportunities or higher earning potential in the long run.
- Apply for financial analyst positions (leverage job boards and networking): With your education and initial experience in hand, start applying to open financial analyst jobs. Prepare a strong résumé that highlights your finance coursework, any internship or work experience, and relevant skills like Excel or financial modeling. It’s often effective to search on general job sites and LinkedIn, but also make use of specialized resources. Networking is powerful in the finance world—connect with alumni, mentors, or professionals at networking events (even virtual ones) to learn about job openings. Additionally, don’t overlook niche job boards. If you’re interested in tech or SaaS companies, a site like [1†The SaaS Jobs†www.thesaasjobs.com] is a great place to discover financial analyst roles at software companies. These specialist boards let you find roles (including remote opportunities) in specific industries. Be open to both in-office and remote positions when job hunting; many companies now hire analysts who work remotely, so you can broaden your search beyond just your local area. By applying through targeted platforms, leveraging your network, and casting a wide net, you’ll increase your chances of landing a financial analyst role.
In summary, becoming a financial analyst involves building your finance knowledge through education, gaining real-world experience to apply that knowledge, and possibly obtaining certifications to enhance your expertise. It’s also important to stay curious and keep learning—markets and industries evolve, so a great analyst is always updating their skills. With determination and the right resources (such as internships, networking, and specialized job boards), you can secure a financial analyst position and grow your career in the world of finance. Early in your journey you might start in an office setting or remotely, but either path can lead to a successful career analyzing and influencing financial decisions for businesses. Good luck on your path to becoming a financial analyst!
