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What kinds of decisions do you make as a Financial analyst?

What kinds of decisions do you make as a Financial analyst? #business #finance #business-analysis #corporate-finance #financial-analysis

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Troy’s Answer

A Financial Analyst plays a critical role in helping their organization make business decisions by serving as a trusted advisor to their business partners. Depending on which facet of Financial Planning and Analysis (FP&A) you work on, the type of decisions you influence will vary widely. From my experience in various roles as a Financial Analyst, I have been involved in decisions with vendor selection, capital budgeting and expense forecasting submissions, resource allocation to various projects, the headcount allocation process, and even which types of discounts the company should offer its customers.

As you can see, there are a wide range of opportunities to make an impact on the organization as a Financial Analyst, and it is a great way to become familiar with a businesses operations in preparation for future roles.
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Jian’s Answer

I am a corporate financial analyst. I provided a lot of analytics to management to highlight issues and opportunities, to help management to make right decision.
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Stephanie’s Answer

http://talentegg.ca/incubator/2012/10/04/financial-analyst/


http://www.investopedia.com/articles/professionals/090815/career-advice-financial-analyst-vs-accountant.asp?lgl=bnull-baseline-below-content


As a financial analyst you use data to make all kinds of decisions. You can decide between different scenarios for a business case with financial modeling, you can run profitability analysis and projection statements to decide on price point on a product or service, and you can run calculations to understand the current and long term impacts on a capital investment, like a real estate purchase.


Analysts can run various reports on sales, units, profits, customer retention rates, etc to assess the current state of the business, to understand the different driver affecting the profitability of the business, and to make decisions about where the company can invest money. It can be a lot of fun using data to back up decisions you can feel confident in, and a strong financial analyst can find a job anywhere as it's such an important strength for any business to have!

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Scott’s Answer

A Financial Analyst typically performs work to contribute to the larger decision-making process of the Finance team at large. The Financial Analyst role is typically relatively entry-level, so the role itself doesn't make final decisions often directly.

The work is still incredibly important and exciting - it collects data from across the company and from comparable companies and industries, prepares analysis and models to "make sense of the data", and cooperates in the team's processing of that information to reach the optimal decision.
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Nikki’s Answer

Hi Abdulwahab - Great question! A financial analyst's role is to arm decision makers with actionable information and provide insight into the financial impact of key initiatives.

Here are some of the questions I have come across as a financial analyst:

- What is the revenue benefit and /or cost impact of the initiative?

- What are the options/alternatives available and what is the revenue/cost for each option? Ex. what is the revenue/cost impact if we sell X units, Y units, Z units, etc.

- If we want to achieve a certain level of revenue increase or cost reduction, what needs to be true?

- What are the financial risks of the initiative? If certain assumptions are incorrect, what is the impact in dollars?

Hope this helps and good luck in your career journey!

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Andy’s Answer

As a financial analyst you will asked to provide analysis and explanations related to performance to budget, outlook and forecast. In addition there will be other ad hoc issues that will need to be researched and explained. When providing explanations to leadership and upper management, you will want to summarize the issue and communicate in a clear and concise manner. In doing so, you will need to make decisions around what is causing the issue and decide what reporting, visuals, graphs and/or charts best support your explanations.
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Andrew’s Answer

As a financial analyst you'll become the subject matter export for the part of the business you're supporting. Teams will seek your input on actual performance to date vs budget as well as where you expect to finish by the end of the year (via estimates, trends, forecasts, etc.) While you might not be the ultimate decision maker on the go forward strategy, you can provide historical information, guidance on risks and opportunities and sensitivity analysis for different scenarios to help make the most optimal decision.
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Sarada’s Answer

As a financial analyst you enable decision making for the business and hence you play a key role in making financial decision.

As a financial analyst you will also be involved in reporting and analysis. Communication is also equally important as you need to present your view......
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Naren’s Answer

Financial Analyst are mainly service/support roles designed to support different areas of the business (Sales, IT, Product, etc.) The role of the financial analyst is to help the business make decisions that maximize the value of the business. For example, the company may be losing money and wants to decide which product is dragging profits down the most. A financial analyst would then analyze historical data to determine which product lines are losing the most money and why. This analysis will be used to support decisions that management makes.
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