What Does a Financial Analyst Do: 10 Roles?


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One crucial role of a financial analyst is to conduct financial data analysis. This role involves providing insights into a client or organization’s financial performance, new changes, and what next to expect.

If you are looking to hire someone to take charge of your financial activities, then you might think of a professional.


Among all the financial experts you might think of hiring a financial analyst. After this the next thought that comes to mind would be; “what does a financial analyst do”?

If you embark on good research you will find out that the role of a financial analyst involves a wide range of activities. All the roles are important, each one points towards the direction of helping you manage risk, plan strategically, and proffer good decisions.

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What does a financial analyst do?

A financial analyst deals with clients and business organizations, The role can vary depending on the scope and sector.

Hence the professional might be performing for a client or for an organization. Whatever the case there are more general roles that befit both sectors when combined together. Below are the important roles a financial analyst may perform for an organization or client.

1. Performing financial data analysis

It is the role of the financial analyst to periodically access the performance of a client or organization’s financial health. The expert gives a report on market trends and situations that may affect the client’s financial or investment objectives.

On the whole, the expert analysis may comprise both ratio and trends analysis and comparison to competitors in the market.

2. Generate reports and present them to clients

At the end of each period, as agreed with clients, the expert will prepare reports and presentations. This report will contain the findings, investment proposals, and how clients’ financial activities are carried out.

At the same time, the report will also give a solution to any identified problem. The analyst will communicate these reports and presentations to the client or organization.

3. Examine financial reports

The analyst role includes investigating the financial result of a client or organization. For instance, accessing the organization’s metrics and ratios, and looking into changes, may happen periodically or at year-end.

The expert takes into account all information from the beginning and how this information impacts the organization’s performance. Then while doing this will also try to compare the organization’s performance with other competitive industries.

4. Keep up with suggestions and recommendations

When an individual is seeking to become a financial analyst, the process includes acquiring soft skills. It means the ability to make decisions and solve problems.

This is another role of the financial analyst, to proffer suggestions and recommendations based on what will establish progress for the organization.


Some certain areas of suggestion include means of acquiring more revenue and preparing budgets before expenditure. Furthermore, how to increase product visibility and efficiency and the most effective method of gaining customers’ patronage.

4. Build a cordial relationship

To gain maximum cooperation and achieve financial goals, the expert needs to build a good relationship. This is very important as building a cordial relationship is the best channel of communication.

With this, the expert will gain access to collaborate with clients, make decisions and suggest solutions, as well as gain their trust.  Through cordial relationships, clients will feel free to confide their investment objectives and hope for the best.

5. Compliance with rules and regulations

It is the role of the financial Analyst to comply with the laws that regulate various financial activities. The expert has to seek a way to receive information on regulatory trends. Furthermore, communicate such to clients and ensure that these rules are properly adhered to.

6. Budgeting and forecasting

The financial activities of every client or organization include income flow, expenses, and a means of earning future revenue. It is the role of the financial analyst to create a financial forecast showing how the organization or client will succeed. Help them to plan towards attaining this prediction by monitoring market trends, budgeting expenses, and providing insight on financial growth.

7. Conducting various investment research

By analyzing financial statements and conducting a valuation model a financial analyst conduct research and gather information on various assets.

The client or organization may be interested to invest in any financial assets. It is the role of the financial analyst to understand what direction to set up the investment.

It involves researching and finding out available investment opportunities.  Then relate back and make recommendations on what assets to collect and possibly build a portfolio to achieve success.

8. Risk management

In every financial setup, acknowledging risk becomes one major factor when mapping out investment strategies. Therefore, risk management becomes one significant role of a financial analyst.

Through findings, you will be able to understand what risk can hinder your clients or organization’s financial progress. This involves assessing your client’s risk tolerance level, understanding market conditions,s and what financial assets to invest in.  


The job of a financial analyst can be numerous, but when seeking information on what they do you need to be specific. This is because the role of any financial analyst depends on the industry or firm they engage in working for.

Some of the experts may be hired to work for a private individual while some are hired to work for big organizations. However, we have listed above some common roles they generally perform irrespective of their status and sector of engagement.

Finally, there are some important things to look out for when hiring an expert. They include the proficiency to gather financial data, generate a report and make a presentation of this information.

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