It’s obvious that carving out an incredible career in finance rests on good grades, but that’s not all you’ll need. To become a financial analyst or business analyst, a decent amount of soft skills are also necessary, and these skills will look different depending on the career you choose.
What is a Finance Analyst?
Financial analysts are in charge of examining financial data and using these findings to help companies make business decisions. Their analysis helps inform investment decisions for larger companies or enterprises, such as whether to buy or sell stock based on business performance.
What is a Business Analyst?
Business analysts also pore over company data and use it to help management make better business decisions. However, this data involves the day-to-day operations of a business. They are called upon to spot inefficiencies, set financial goals, and streamline company operations.
What’s the Difference Between a Finance and Business Analyst?
On the surface, both careers look similar. Finance analysts and business analysts work 40 to 50 hours a week, make between $50,000 to $60,000 a year starting, and have a favorable job market. These professionals spend a lot of time around data, statistics, and business finances.
These career paths separate at their main business focus. A finance analyst deals more with investments, whereas a business analyst takes care of business operations and management.
Business analysts and finance analysts also require different certifications. The CBAP or CCBA certification certifies business analysts, while the CFA designation certifies finance analysts. You’ll also find separate mock exams, practice courses, quizzes, and study guides for each test.
What Skills Do Finance Analysts Need?
A finance analyst requires a certain set of hard and soft skills to be successful. While the following skills may overlap with business analysts, they’re more applicable to finance analysts.
Financial Planning
Finance analysts can determine the most appropriate investing and financing activities for a business after evaluating all possible options. With planning skills, finance analysts can figure out how to achieve the objectives and strategic goals of any enterprise that hires them.
Financial Literacy
Financial literacy refers to a person’s ability to understand complicated financial terms, phrases, and practices. Finance analysts should be well-versed in everything related to investments and financing while also having the skills to communicate these topics to clients quickly and clearly.
Accurate Budgeting
To ensure their clients don’t over or under-invest, finance analysts will establish budgets and prioritize spending activities. While knowledge of budgets isn’t always required, learning this skill is essential if you want to contribute to the creation of realistic budgets for business clients.
Financial Regulation Proficiency
All financial careers require a large amount of financial regulation proficiency. Clients won’t want to hire someone who makes illegal financial decisions, as that increases their risk of audit, fees, or jail time. For these reasons, finance analysts must stay up-to-date with all financial laws.
What Skills Do Business Analysts Need?
Similarly, business analysts need a fair number of hard and soft skills in their careers. While the following skills may overlap with finance analysts, they’re more applicable to business analysts.
Presentation Skills
Business analysts should be comfortable engaging with an audience. Excellent public speaking capabilities are required to present proposals and outcomes to a boardroom. While they may speak in private more often, negotiation skills are necessary to convince business leaders.
Interpersonal Communication
Interpersonal communication is when someone can adjust their verbal communication and language to connect with different types of people. Business analysts must speak to the entire workforce about business finances, whether they’re an employee or senior representatives.
Attention to Detail
If you can notice small details, you’ll be a better problem-solver. Business analysts need a keen eye when looking over business documents and data to spot inconsistencies. They must analyze a company’s finances and use all available data to provide accurate business reports.
Market Research
Market research skills come in handy when a business analyst has to pivot to keep companies competitive. Since their ultimate goal is to help clients achieve success with their business, a business analyst must pay close attention to industry trends, user behavior, and the economy.
What Skills Do Both Financial Careers Need?
Financial analysts and business analysts have many similarities, so multiple hard and soft skills will apply to either profession. Here are a few skills that benefit both financial career options.
Problem-Solving Skills
It isn’t enough to have a solid knowledge of financial systems and processes. Analysts also have to tackle complex problems at a moment’s notice. Whether they’re addressing financial implications or initiating a personalized solution, strong problem-solving skills will be an asset.
Management Experience
Analysts are essentially managers. They take a leadership position in the company and handle some of its most vital assets. If you have management experience, you’ll excel in either role, even if you aren’t in charge of hiring new staff, supervising a team, or heading a department.
Capacity for Innovation
Financial careers are associated with routine and strict systems, but innovation can be found anywhere, even in the most streamlined systems. Creativity and curiosity is a great thing to have as an analyst, as it encourages you to build off of traditional methods and protocols.
Computer Skills
Being tech-savvy is a plus in most industries, but analysts need computer skills now more than ever. Most of their tasks can be completed or improved by financial software and tools. If you know how to code spreadsheets in SQL or NoSQL, that’s a plus but not at all necessary.
