How to Become a Financial Analyst in 2025

Hey everyone! In today's video, we'll explore the promising path of a financial analyst for those eyeing a finance career. We'll clarify the role, responsibilities, salary expectations, necessary skills, and educational requirements for a financial analyst. Drawing from an analysis of 1,000 job postings, we're eager to present our report's findings for an accurate overview. But before proceeding, kindly support us by liking this video and subscribing to our channel for more insightful career content. Very well, let's get started. What does a financial analyst do in practice? Depending on the company they work for, financial analysts have different degrees of specialization. In small firms, a financial analyst will have a 360-degree visibility on revenue growth rate, product sales, profitability margins, top clients, and will possibly study the financial impact of different business lines the company has. They will also work with various balance sheet items and prepare budgeting projections. This isn't the case in big firms where financial analysts specialize and are responsible for reporting and analysis of specific P&L and balance sheet items. For example, when I worked at Coca-Cola in the UK, for a significant portion of my time, I worked on analyzing the performance of the Monster brand and studied sales, cost of goods sold, and OPEX for that brand only. No visibility of the firm's balance sheet and anything below EBITDA. I also didn't work on the company's other brands, such as Coca-Cola, Fanta, and so on. But despite their different levels of specialization, financial analysts aim to create value for a business by supporting decisions and analyzing financial data, forecasting future financial performance, and evaluating investment opportunities. A financial analyst's work helps management understand which operations are profitable and how business activities impact the firm's financial performance. This is impressive, but how does this translate to salary? How much does a financial analyst earn? Glassdoor and Payscale are kind enough to share their insights. Embarking on a financial analyst career, you can anticipate starting with an average salary of $73,000. As your career progresses, expect to earn a higher wage, with analysts having four to six years of experience making over $90,000 annually. Pursuing a career as a financial analyst is an excellent starting point, potentially leading to such roles as financial controller, finance manager, and even CFO. Many aspiring financial analysts wonder, is a university degree necessary for employment? Our analysis of 1,000 job postings reveals that 38% require a bachelor's degree, 29% a master's, and 32% do not specify a university degree as a prerequisite. So, while lacking a university degree does not preclude you from securing a financial analyst position, it does reduce the available opportunities. But let's tackle the key issue, the skills required for a financial analyst role. Number one on the list is Excel proficiency, a requirement for solid Excel skills in 60% of job postings. It's important to note that in the corporate sphere, Microsoft Excel is akin to Google and other spreadsheet software to Bing. Our study shows that 99.6% of companies prefer Microsoft Excel. The most sought-after skills for financial analysis, forecasting, budgeting, client cost, and revenue analysis are all covered in our 365 Financial Analyst Program. If you're committed to securing a financial analyst position, click the link in the description for an invaluable resource in your job hunt. Many candidates often wonder if a professional finance certification is necessary for employment. Our findings indicate that the CPA certification is the most commonly sought after, appearing in job listings, followed by ERP at 10.3% and CFA at 3%. Other commonly cited office productivity tools include PowerPoint, 14%, Access, 13%, and Word, 12%, alongside Microsoft Excel. In larger companies, financial analysts are often required to work with a sophisticated enterprise resource planning system. Therefore, it comes as no surprise that numerous job listings, particularly from big companies, highlight the demand for robust ERP expertise, particularly in SAP, 12%, and Oracle, 6%. I hope this short overview of the key skills you must feature on your resume to land a financial analyst job in 2024 will prove invaluable. Discover where to develop them by visiting our website at 365financialanalyst.com. A link is provided in the description of this video. Okay, this will do for today. Thanks so much everyone and see you in our next video.