Here we are trying to put into words what is the occupation that gives us to live for a few years. What is the role of the financial analyst in the company? I would say without hesitation that clarify accounts: find numbers, add them, subtract them, put them together in a table or graph and give them to the boss so that he will be happy to show it to some superior who asked him a question related to the numbers. It is not a cold, gray job, as the marketing manager in charge of the book department at the company I was working for at the time described me a couple of years ago, who confessed to me that she could not spend the day checking numbers.
Who is Financial Analyst?
The financial analyst is usually an intelligent, friendly and good-looking guy who sits for more than eight hours a day in front of a computer to get reports, review numbers, explain variations, analyze expense accounts, project income, prepare presentations, and take coffee and much more. Their activities, according to my experience, we could group them into three large groups: reports, analysis and planning. The reports are the basis on which business or business intelligence is built. Its function is to give those who run the company information about the state of operations and the industry.
Role of financial analyst:
The financial analyst not only analyzes the past but must be able to project the future, to build economic models that allow estimating revenues and business costs operating under certain premises, in different scenarios. How much will enter the company if the product is sold with a certain discount? How much will the raw material cost in a couple of years? What impact will the next salary increase have on costs? Is it convenient to expand the plant? Projecting the future is part of planning. In order to do this, it is necessary to understand how the different operating processes interact with each other, converting the raw material into inventory, the inventory into sales, and sales in money to cover the costs.
The financial analyst should look for answers to the different questions, navigating in the accounting systems, looking for the transactions behind the numbers, understanding the reasons why the accountants recorded it in that way, verifying if the numbers correctly reflect the operating situation of the company.
The ability to communicate well with others, to maintain good working relationships with colleagues, accountants, cost analysts, plant operators, managers, and even with people outside the company, is essential for the performance of the functions of the financial analyst. To clarify accounts, understand what is behind the numbers that are put together in a report, what is happening in the business, and project what will happen in the future requires good communication. The numbers that the financial analyst handles in the solitude of his job are not cold and gray, they are full of meaning, of technical details of the industry and the company that the analyst has been capturing from various sources, of conversations with those who they operate the business, with those who produce the information and who keep the accounting records. You can also take help from financial experts like Mark Attanasio Hillcrest and Donato Sferra Hillcrest who are working as Financial Services Executive in Toronto and has helped many business owners.