Essential Skills
The top 3 skills needed to work as a financial analyst are:
- Knowledge of corporate finance
- Financial modeling
- Strong analytical skills
Financial analysts must also be proficient in various software to analyze trends, create portfolios, and make predictions. Excellent written and oral communication skills are critical, allowing analysts to explain complex financial terms in simple words. Leadership and mentoring skills are important for those taking on roles that lead teams of analysts, creating a collaborative atmosphere.
Communication and Mathematical Skills
Analysts who represent their firms need to confidently articulate their analyses and recommendations to clients. Effective communication, both oral and written, is essential. Analysts also need a robust understanding of mathematics, including the ability to apply differential equations and stochastic calculus, to solve complex financial problems and ensure accuracy in their work.
Hard Skills for Financial Analysis
Hard skills are specific, measurable abilities that individuals can possess and demonstrate in a professional capacity. To understand day-to-day responsibilities of a financial analyst, it is helpful to know the typical duties and responsibilities of the role.
When applying for a financial analyst position, ensure your resume highlights relevant hard skills such as:
- Financial Modeling
- Financial Reporting
- Finance
- Internal Controls
- Financial Analysis
- Forecasting
Additionally, financial analysts should have a strong knowledge of:
- Statistical and financial modeling software
- Business intelligence software
- Financial management systems
- Automation software tools
- Advanced mathematics
- Presentation skills