How to Become a Financial Analyst

Nicholas Schneider

FP&A Manager

Whether you’re passionate about the stock market, intrigued by corporate finance, or just love working with data, becoming a financial analyst can be a lucrative and intellectually rewarding career. Even if you have no prior experience in the finance industry and lack a formal degree in business or economics, becoming a financial analyst is still entirely within reach.

In this guide, you’ll get a clear, step-by-step roadmap to break into financial analysis. We’ll walk you through what the role actually involves, the technical and soft skills you’ll need to succeed, the certifications that can boost your credibility, and practical strategies to land your first job, even if your background isn’t in finance.

What Does a Financial Analyst Do?

Understanding the Role

At its core, a financial analyst helps businesses and individuals make better decisions with their money. That might mean forecasting company revenues, identifying investment opportunities, assessing risk, or building models that predict future performance.

Analysts work across industries, from banking and tech to healthcare and manufacturing, and the day-to-day can vary depending on the role. But the goal is always the same: use data and logic to help stakeholders make smarter choices.

Daily Responsibilities

The day-to-day responsibilities of a financial analyst are typically a blend of recurring, cyclical work and dynamic, ad-hoc projects. While tasks can vary by industry and specific role, most financial analysts follow a cadence tied to monthly accounting cycles, quarterly investor updates, and business performance reviews. In between these cycles, they also take on one-off projects that support strategic initiatives. Across all this work, financial analysts are responsible for interpreting data, generating insights, and informing decisions that help drive business outcomes. Some of the key responsibilities include:

Building and Maintaining Financial Models: Analysts create complex models in Excel or specialized software to simulate various business scenarios. These models help predict future revenues, expenses, cash flows, and other financial outcomes, allowing stakeholders to evaluate different strategies before making critical decisions.
Analyzing Financial Statements: A core responsibility of financial analysts is examining income statements, balance sheets, and cash flow statements to evaluate a company’s financial health. This requires not only identifying trends, anomalies, and key performance indicators, but also understanding how the statements interrelate. A solid grasp of basic accounting principles is helpful for making accurate assessments and informed recommendations.
Preparing Detailed Reports and Presentations: Financial analysts are responsible for taking unstructured or complex data and distilling it into clear, concise insights that support decision-making. This often involves identifying key messages or takeaways, then presenting them through reports, dashboards, or slide decks tailored to stakeholders such as internal teams, senior leadership, investors, or clients—often within tight deadlines.
Monitoring Market Trends and Economic Indicators: Staying informed about industry trends, market movements, competitor performance, and macroeconomic conditions is essential. This context allows analysts to interpret data more effectively and anticipate potential risks or opportunities.
Evaluating Investment Opportunities: For those in investment or asset management roles, this includes conducting in-depth research on stocks, bonds, real estate, or other financial instruments. Analysts assess risk, return potential, and alignment with broader portfolio strategies to support informed investment decisions.
Collaborating Across Teams: Financial analysts frequently work cross-functionally with departments such as accounting, operations, marketing, and sales to gather data, validate assumptions, and align financial insights with broader business goals. Building trust and a strong reputation across these teams is critical, as effective collaboration depends on credibility, clear communication, and a deep understanding of each team’s priorities.
Maintaining Data Integrity: A critical but often overlooked task is ensuring the accuracy and consistency of financial data. Analysts regularly clean, validate, and manage datasets to ensure the numbers tell a truthful and reliable story.

Financial analysts wear many hats: strategist, researcher, communicator, and number-cruncher. The role demands analytical rigor, attention to detail, and the ability to turn complex data into meaningful insight.

Different Types of Financial Analysts

The field of financial analysis is broad and diverse, offering a range of specializations to suit different interests, industries, and career goals. While all financial analysts work with data to inform decisions, the focus of their work can vary significantly depending on the role and the organization. Here are some of the most common types of financial analysts:

Corporate Financial Analysts: These analysts are embedded within a company’s finance department and play a key role in supporting internal decision-makers. In addition to budgeting, forecasting, performance tracking, and strategic financial planning, they help business leaders evaluate trade-offs and make informed decisions by leveraging available data and insights. Whether it’s allocating resources, assessing project feasibility, or guiding strategic initiatives like mergers or expansions, corporate financial analysts ensure decisions are grounded in financial reality and aligned with the company’s goals.
Investment Analysts: Investment analysts work in asset management firms, hedge funds, investment banks, or brokerage houses. Their primary focus is researching and evaluating stocks, bonds, mutual funds, and other investment vehicles. They assess the financial performance of companies, study industry trends, and build models to forecast asset performance. Their analysis helps portfolio managers and individual investors make informed decisions about where to allocate capital for maximum return and managed risk.
Credit Analysts: Credit analysts are responsible for evaluating the creditworthiness of individuals, companies, or securities. They typically work in banks, credit rating agencies, or lending institutions. By analyzing financial statements, credit reports, payment history, and market conditions, credit analysts determine the risk level associated with extending credit or loans. Their evaluations directly influence lending decisions and interest rates, making them critical to managing financial risk.
Risk Analysts (or Risk Management Analysts): These professionals specialize in identifying and evaluating potential risks that could negatively impact an organization’s financial standing. They assess both internal and external threats—from market volatility and regulatory changes to operational risks—and recommend mitigation strategies. Risk analysts are in high demand in industries like insurance, banking, and energy, where managing uncertainty is crucial.
Quantitative Analysts (Quants): Often employed by investment banks or hedge funds, quantitative analysts use mathematical models and statistical techniques to develop trading strategies, assess risk, and price financial instruments. This role requires strong programming and mathematical skills, and it often intersects with data science and machine learning.
Data or Business Analysts with a Financial Focus: As more companies embrace data-driven decision-making, some analysts work at the intersection of finance and data analytics. These professionals use tools like SQL, Python, and data visualization platforms (e.g., Tableau or Power BI) to extract insights from large financial datasets and help guide strategic decisions.

How to Get Into Finance

Breaking into the finance world might feel daunting, but it’s more achievable than you think. Employers are now placing increasing value on real-world skills, analytical thinking, and initiative over traditional credentials alone. With the right approach, dedication, and strategic learning, you can absolutely carve a successful path into finance. Here’s how to begin:

Educational Background

While a degree in finance, economics, or accounting can help, it’s not always a hard requirement. Many professionals enter the field through certifications or relevant online courses.

Certifications are a powerful alternative (or complement) to a traditional degree. They provide structured learning, boost your resume, and prove to employers that you’re serious about the field and have relevant skills. We’ll cover these more later on.

Online learning platforms like Udemy offer cost-effective courses that can help you prepare for exams like CFA Level 1 or FMVA, helping you build the expertise needed to pass.. These courses are self-paced, practical, and include exercises that simulate real-world finance problems.

Gain Practical Experience

If you don’t have formal experience in finance, one of the best ways to bridge the gap is through hands-on learning, projects, and programs that demonstrate your capabilities. Entry-level finance rotation programs are especially valuable, as they offer broad exposure to different functions—such as financial planning, accounting, and operations—while helping you build a well-rounded foundation. Here are a few ways to gain relevant experience:

Internships: Interning with a finance department, investment firm, or bank can offer a structured environment to build skills. Even short-term or part-time internships can make a big difference on your resume.
Job Shadowing: Reach out to professionals in your network (or cold message on LinkedIn) and ask if you can shadow them for a day. This gives you a behind-the-scenes look at the daily life of a financial analyst and helps build connections.
Freelance or Volunteer Projects: Offer to analyze financial data or create reports for small businesses, nonprofits, or student organizations. You could build a simple financial model for a local startup or analyze public company data as a case study.
Simulated Practice: Use stock simulator websites, or download real financial reports (10-Ks, earnings transcripts) and practice breaking them down. Document your analysis in a personal portfolio.

Networking Matters

Networking is a critical part of launching a career in finance, and there are more ways than ever to connect with professionals in the industry. Start by leveraging online platforms like LinkedIn. Optimize your profile to reflect your interests, certifications, or relevant coursework, and begin following companies, finance influencers, and job boards to stay up to date.

Join finance-related groups, participate in discussions, and send personalized connection requests to people whose careers you admire. A thoughtful message expressing your interest in their work can often lead to valuable conversations or even mentorship opportunities. Outside of LinkedIn, vibrant finance communities on Reddit, Twitter/X, Slack, and Discord offer a more casual space to ask questions, exchange resources, and learn from others on a similar path.

In-person networking also plays a valuable role in building lasting connections. Attending finance meetups, alumni events, seminars, and industry conferences gives you the chance to engage in meaningful, face-to-face conversations. Come prepared with a simple elevator pitch and genuine curiosity. And don’t forget: effective networking doesn’t end after the first conversation. Following up, expressing gratitude, and staying in touch over time can turn brief encounters into long-term professional relationships, job referrals, and mentorships that can shape your entire career.

Steps to Become a Financial Analyst

Breaking into the financial analysis field is very achievable with the right plan. Here’s a step-by-step roadmap to guide you from where you are now to landing your first role in financial analysis.

1. Master Essential Technical Skills

Technical proficiency is the foundation of any financial analyst role. The tools and platforms you use will vary by industry and company, but certain core skills are essential:

Excel: This is non-negotiable. Financial analysts use Excel for modeling, budgeting, forecasting, and analysis. Learn how to use formulas, pivot tables, VLOOKUP, and eventually, advanced tools like Power Query and macros.
SQL: Companies are always looking for analysts who can retrieve and manipulate large datasets. SQL helps you pull specific data from complex databases—an invaluable skill in data-driven environments.
Python or R: Programming languages like Python are becoming increasingly important for automating repetitive tasks, conducting advanced data analysis, and integrating AI tools into financial workflows.
Future-Proof Skill – AI: AI is becoming critical—analysts who can use AI to improve efficiency and decision-making will offer strong value in the next 5–10 years.

Mastering these tools doesn’t happen overnight, but consistent practice through online courses and hands-on projects will build your confidence and competence.

2. Pursue Professional Certifications

As mentioned, certifications are a powerful way to stand out in a competitive job market. They show employers that you’re committed, capable, and knowledgeable in your field.

Certifications to Consider:

Chartered Financial Analyst (CFA): The CFA designation is one of the most respected credentials in the investment and financial analysis world. It’s rigorous and time-consuming, but passing even Level 1 can significantly enhance your job prospects.
Financial Modeling & Valuation Analyst (FMVA): Offered by the Corporate Finance Institute (CFI), the FMVA program focuses on hands-on skills like Excel modeling, valuation techniques, and financial statement analysis. It’s a great option for those targeting roles in corporate finance, investment banking, or consulting.
Certified Public Accountant (CPA): While typically pursued by those in accounting roles, the CPA credential can also be valuable for analysts who want to understand financial reporting on a deeper level, especially in audit-heavy or regulatory environments.)

You can begin preparing for these certifications through affordable, self-paced courses on platforms like Udemy, which offer structured learning paths, mock exams, and real-world practice cases.

3. Build a Portfolio That Showcases Your Skills

A strong portfolio demonstrates your practical abilities and sets you apart from other applicants. Even if you haven’t held a financial role before, you can still create a portfolio that highlights your potential.

What to include:

Financial Models: Build models for public companies using their real financial statements. Include forecasts, sensitivity analyses, and valuation approaches like DCF or comparables.
Market Research Reports: Analyze a sector, company, or investment opportunity. Use data, charts, and clear explanations to demonstrate your thought process.
Data Dashboards: Use tools like Excel, Tableau, or Power BI to visualize trends, KPIs, or historical financial performance.

Host your work on a personal website, GitHub, or PDF portfolio to easily share with recruiters or during interviews.

4. Leverage Online Education

Formal education isn’t the only way to gain financial knowledge. High-quality courses taught by real-world experts can teach you everything from Excel modeling to investment analysis. Look for courses that combine theory with hands-on projects.

Udemy offers lifetime access, which means you can learn at your own pace and revisit materials anytime you need a refresher.

5. Apply for Entry-Level Roles

Once you’ve built foundational skills and developed a portfolio, it’s time to start applying for jobs. Don’t worry if you’re not yet an expert—most entry-level roles are designed to train and develop junior analysts.

Look for positions like:

Junior Financial Analyst
Finance Assistant
Business Analyst (Entry Level)
Data Analyst (Finance Focus)
Rotational Programs

Tailor your resume and cover letter to emphasize the skills you’ve acquired, relevant coursework or certifications, and any projects you’ve completed. Highlight your problem-solving mindset, attention to detail, and eagerness to learn.

6. Cultivate Crucial Soft Skills

While technical skills get your foot in the door, soft skills help you thrive in the role. Financial analysts are often expected to communicate findings to both technical and non-technical audiences, work cross-functionally, and think critically under pressure.

Key soft skills to develop include:

Communication: You’ll need strong presentation and public speaking skills to present complex financial data in a clear, concise, and compelling way—whether through written reports or live presentations.
Problem-Solving: Analysts often deal with incomplete data, unexpected outcomes, or rapidly changing market conditions. Being able to make educated assumptions about inputs or key drivers is essential.
Time Management: Many roles involve juggling multiple reports, projects, and deadlines—strong organizational skills will help you stay ahead.

By following these steps—building technical expertise, gaining certifications, creating a strong portfolio, learning continuously, applying for the right roles, and refining your soft skills—you’ll set yourself up for success as a financial analyst. The path may take time, but with consistent effort, it’s absolutely within reach.

Financial Analyst Career Path and Opportunities

A career in financial analysis offers not only strong earning potential but also a clear path for upward mobility and specialization. Whether you’re aiming to rise through the ranks of a large corporation, move into investment banking, or join a fast-paced startup, financial analysis provides a versatile foundation that opens doors across multiple industries and career trajectories.

Potential Career Progression

The financial analyst career path typically progresses through three main stages, though the timeline can vary depending on your industry, performance, and qualifications:

Entry-Level Roles (1–3 years)
Titles: Junior Financial Analyst, Finance Assistant, Business Analyst
Average Salary: $73,000 per year ^[1]

At this stage, your primary responsibilities involve collecting data, building basic financial models, assisting with budgeting and forecasting, and supporting senior analysts. You’ll gain hands-on experience working with financial statements, Excel models, and reporting tools. This is where you learn the foundational skills of the trade and begin to understand the financial mechanics of a business.

Goals:

Build technical skills (Excel, SQL, financial modeling)
Gain exposure to different departments and types of analysis
Start working toward a certification (e.g., CFA Level 1, FMVA)

Mid-Level Roles (3–7 years)
Titles: Financial Analyst, Senior Financial Analyst, Strategic Finance Associate
Average Salary: $80,000 per year ^[2]

With a few years of experience under your belt, you’ll take on more complex responsibilities such as developing forecasts, conducting profitability analysis, evaluating investment opportunities, and presenting findings to executives. You may begin mentoring junior analysts and participating in high-level strategic planning.

Goals:

Deepen your understanding of financial strategy and business operations
Expand your expertise in tools like Power BI, Python, or ERP systems
Consider pursuing more advanced certifications or an MBA if aiming for leadership

Advanced Roles (7+ years)
Titles: Finance Manager, Director of Financial Planning & Analysis (FP&A), Vice President of Finance, Chief Financial Officer (CFO)
Typical Salary: $100,000–$500,000+ per year ^[3-4]

At the senior level, financial analysts transition into leadership roles where strategic thinking, cross-functional collaboration, and decision-making carry more weight than technical modeling. You’ll be responsible for managing teams, setting financial goals, allocating budgets, and advising C-suite executives or boards.

Goals:

Lead teams and major financial projects
Drive company-wide financial strategies
Represent the finance function in executive decision-making

Industries That Actively Hire Financial Analysts

One of the greatest advantages of becoming a financial analyst is the flexibility to work across nearly any sector. Virtually every business, regardless of size or industry, relies on financial expertise to operate efficiently and grow sustainably.

Common industries hiring financial analysts include:

Banking and Financial Services: Commercial banks, investment banks, and asset management firms rely heavily on financial analysts for credit evaluation, portfolio analysis, and risk assessment.
Consulting Firms: Strategy and financial consultants analyze market conditions and business operations to advise clients on mergers, acquisitions, restructurings, and performance improvement.
Corporate Finance (Across All Industries): Every major corporation—from retail to manufacturing—has a finance department. Analysts here manage internal budgets, forecast cash flow, and optimize resource allocation.
Technology and Startups: Tech companies and startups hire analysts to monitor burn rates, model growth scenarios, and prepare for fundraising or IPOs. Roles in this space often blend finance with data science and business strategy.
Consumer Packaged Goods, Beverage and Food Companies: These industries rely on financial analysts to track costs, forecast demand, and optimize pricing and profitability across products, channels, and regions.
Healthcare, Real Estate, Energy, and More: Specialized industries rely on financial analysts who understand their unique cost structures, regulations, and revenue models.

Opportunities for Specialization and Advancement

As you grow in your career, you can specialize in areas that align with your strengths and interests:

Financial Planning & Analysis (FP&A): Focuses on budgeting, forecasting, and long-term strategic planning.
Investment Analysis: Deals with evaluating securities, building investment portfolios, and analyzing financial markets.
Risk Management: Involves identifying and mitigating financial risks—especially relevant in banking, insurance, and heavily regulated sectors.
Data Analytics and Automation: Combines finance with data science, using tools like Python and Power BI to automate workflows and drive insights.

Each of these paths offers long-term stability, high earning potential, and the chance to work on projects that directly influence business success.

With diverse options, upward mobility, and growing demand for analytical talent, a career in financial analysis is both financially rewarding and intellectually fulfilling. Whether you want to stay on the technical side or move into executive leadership, the possibilities are wide open.

Financial Analyst Skills to Master

To succeed and grow in the field of financial analysis, you’ll need to develop a well-rounded skill set that includes technical expertise, sharp analytical thinking, and strong interpersonal abilities. A great financial analyst is not only capable of crunching numbers but also of turning complex data into strategic recommendations that influence business decisions. Below are the essential skills you’ll want to master to stand out and thrive in this competitive field:

Technical Skills

Technical proficiency forms the foundation of a financial analyst’s daily work. These are the tools and methods you’ll use to perform analysis, create models, and present insights.

Advanced Spreadsheet (Excel, Google Sheets) Skills:
Excel remains one of the most widely used tools in finance. You’ll need to be fluent in functions like VLOOKUP, INDEX/MATCH, IF statements, and pivot tables, as well as more advanced tools like Power Query and macros. Excel is also key for building robust financial models and forecasts.
Financial Modeling and Valuation Techniques:
Building financial models from scratch is a core responsibility. This includes discounted cash flow (DCF) models, three-statement models (income statement, balance sheet, cash flow), sensitivity analysis, and comparable company analysis. Mastering valuation techniques is especially important for investment analysts and corporate finance professionals.
Data Visualization Tools:
Familiarity with platforms like Tableau, Power BI, or even Excel dashboards is increasingly valuable. These tools help you turn raw data into clear, digestible visuals that make it easier for stakeholders to understand your findings and make data-driven decisions.
Programming Languages and Data Tools:
As financial analysis becomes more data-driven, skills in Python, R, or SQL can set you apart. Python is especially useful for automating repetitive tasks, running simulations, and applying machine learning to large datasets. SQL is essential for querying databases and managing structured financial data efficiently.

Analytical Abilities

Analytical thinking is the heart of financial analysis. It’s not just about gathering data—it’s about making sense of it, finding patterns, and identifying what matters most.

Interpreting Financial Data:
You’ll need to extract insights from financial statements, KPI dashboards, and market reports, and provide summaries and reports to executives. Understanding what the numbers mean in context is key to providing useful and strategic analysis.
Risk Assessment:
Identifying financial, operational, or market risks and estimating their potential impact on a company or investment is a crucial part of the job. This involves scenario analysis, stress testing, and sensitivity analysis.
Trend Identification and Forecasting:
Spotting emerging trends—whether in company performance, industry shifts, or macroeconomic conditions—helps organizations stay ahead of the curve. Strong forecasting skills help you predict how these trends may affect future outcomes.
Quantitative and Qualitative Synthesis:
While financial analysts often work with numbers, being able to combine data with qualitative business knowledge (like management commentary or market sentiment) leads to better-rounded insights.

Soft Skills

In today’s collaborative business environments, soft skills are just as important as technical expertise. As a financial analyst, you’ll often be working across teams, explaining your findings to stakeholders, or advising decision-makers. Success as a financial analyst is largely dependent on the relationships and trust you have built across the organization.

Effective Communication:
Whether you’re writing reports, building presentations, or speaking in meetings, the ability to clearly explain complex data and financial concepts to non-financial stakeholders is essential. Strong communication skills also build credibility and trust.
Problem-Solving and Critical Thinking:
Financial analysts are often called on to solve ambiguous business problems. Being able to break down complex challenges, evaluate options, and propose data-driven solutions is one of the most valuable traits you can offer.
Attention to Detail:
Small errors in a model or forecast can lead to major consequences. Precision and consistency in your work are critical.
Collaboration and Adaptability:
Analysts rarely work in isolation. You’ll collaborate with teams in accounting, marketing, operations, and leadership. Being flexible and receptive to feedback helps you grow and integrate into cross-functional environments.

For a hands-on approach to mastering these skills, explore The Complete Financial Analyst Training Course.

How AI is Changing Financial Analysis

Artificial intelligence (AI) is reshaping nearly every corner of the financial industry—and financial analysis is no exception. Once reliant on spreadsheets and manual calculations, today’s financial analysts increasingly leverage AI-powered tools to work faster, smarter, and more strategically. While best practices for using AI are still undetermined in the financial world, those who are ahead of the curve on how to leverage AI technology to create value will position themselves ahead of others.

Automating Routine Tasks: One of the most significant impacts of AI in finance is the automation of time-consuming tasks. Processes like data collection, data cleansing, financial forecasting, and even some elements of report generation can now be handled by AI algorithms. For example, natural language processing (NLP) tools can scan and summarize earnings reports or market news, saving analysts hours of reading and interpretation.

Enhancing Predictive Accuracy: AI models are capable of analyzing vast datasets far beyond human capacity. These tools can detect patterns and trends across multiple data sources—historical financials, real-time market data, economic indicators, and more—to make highly accurate forecasts. Whether it’s projecting revenue growth or anticipating risk, AI improves both the speed and reliability of predictions.

Fraud Detection and Risk Management: AI also plays a growing role in identifying anomalies and flagging suspicious transactions. By continuously monitoring data in real time, machine learning algorithms can detect fraud, compliance violations, or unusual financial activity that may have gone unnoticed using traditional methods. This has made risk assessment and internal auditing more efficient and responsive.

Data Visualization and Storytelling: Advanced analytics tools powered by AI, such as Tableau with integrated machine learning features or Microsoft Power BI, help analysts turn complex datasets into compelling visual narratives. These dashboards not only make data easier to understand for non-financial stakeholders but also highlight insights that may otherwise be missed.

Changing the Analyst’s Role: As AI takes over repetitive and technical tasks, financial analysts are now expected to focus more on interpretation, communication, and strategy. This shift places a greater emphasis on critical thinking, business acumen, and storytelling—skills that can’t be easily replicated by machines.

How Udemy Can Help You Become a Financial Analyst

Udemy is a go-to platform for aspiring financial analysts. You’ll find:

Comprehensive Course Catalog: Covering financial modeling, CFA prep courses, and data analysis.
Flexibility: Learn at your own pace with lifetime access to materials.
Affordability: High-quality education without breaking the bank.

Explore Udemy’s CFA Topic Page and get started on your financial career today.