A financial analyst is a person who has to make decisions regarding the future of a business. You must make sure that the person you are hiring is knowledgeable, experienced, and intelligent. All these features will provide you a good financial analyst. The inexperienced one may ruin your business so be careful while hiring. Let us know about the duties of a financial analyst.
Duties of a financial analyst
The main duty of a financial analyst is to help the industries and companies in getting loans from the bank or making an investment. Budgeting, cost analysis, and accounting are some of the core duties that an analyst has to perform. Here are some of the aspects, which an employer has to test while hiring an analyst. He should know about the following aspects.
Financial modeling is a process in which an analyst has knowledge about utilizing the price of an asset or working on general corporate finance. He also has to determine the market and its impact on the organization. Along with this, he also has to judge and practice economic conditions and profitability of the company.
Knowledge about spreadsheets
The candidate should have knowledge about spreadsheets and he should also know the steps of making different types of charts as per the requirement. Along with the chart, he should also know the usage of various functions used in the calculation and preparing various types of reports. The candidate should also have the knowledge of Microsoft Excel as this is one of the best software for all these purposes.
Analyzing company stock using metrics
The candidate must have experience in using metrics for analyzing company stick. He has to explain the reason behind using such metrics as it is one of the important aspects of the existence of a company.
The interviewer should ask the candidate about managing the profitability and other aspects of finance.
Knowledge about forecasting
The candidate should have knowledge about predicting revenue and expenses on the basis of available information. This prediction is called forecasting. The prediction should also be made about the demand and supply of various products and services provided by the company.
Challenges of a financial analyst
Here the candidate as to tell the employer about the skills and knowledge that he should have for working as a financial analyst. He should tell about the challenges he has met with in his previous companies. Besides this, he can also let the interviewer know about his experience while dealing with financial information and making a prediction.
Difference between journal and ledger
Journal is an original entry, which has to be noted in the primal book. All the transactions are noted in this book. This boo can also be called as mother of the ledger book. All the accounts stored in this book are termed as debit and credit. The ledger includes a particular account taken from the journal.
These are a few things, which the candidates should know so that they can handle the position of a financial analyst. In order to become a successful financial Analyst you can also follow the pioneer of this field such as Ed Remple and others You can also check Ed Rempel review. Ed Rempel Brampton, all we can say is that he is a certified financial planner, and also blogs according to his experiences and shares meaningful insights.