Financial Analyst: What is the cost of hiring?

Why hire a financial analyst?

Hiring an experienced financial analyst ensures tying up the loose ends of financial gaps within a company. Their daily activities include collecting data, analyzing the different aspects of it, making a report and presenting it to the senior management.

• Collect, consolidate and analyze the company’s financial data, keeping in mind the budgeted figures and coming up with innovative solutions to fill the budgetary gaps
• Develop robust financial and revenue models along with detailed reporting structures
• Identify, analyze and advise on critical strategic decisions based on results

Deciding between a full-time vs freelance financial analyst

Businesses and individuals can hire freelance financial analysts to help them assess and predict trends in the market to increase their revenue. A freelance analyst may be the ideal choice for a business that’s looking for one-time advice on where to invest rather than a full-time employee. 

Businesses consistently looking for promising investment opportunities should consider hiring a full-time financial analyst who can provide the business with frequent advice and improve upon the company’s ROI. Some businesses that may hire full-time financial analysts include commercial and investment banks, insurance providers and wealth management firms. 

What are the types of financial analysts?

There are various types of financial analysts that have different goals in the financial industry. Some of these types include:

• Financial quantitative analysts: Financial quantitative analysts keep an eye on market trends and stock performances to identify and suggest promising investments to the business they work for. They can delve into a company’s historical data and study its financial records to make a projection of future profits. 
• Ratings analyst: A ratings analyst gives investors an idea of what a company’s stock price will be in the near future. They work to help third parties plan when to buy and sell stock. 
• Security analyst: Security analysts research stock and provide reports about the performance of specific companies. They then make recommendations about whether to buy, sell or hold a stock.
• Investment analyst: Investment analysts use global information, such as economic trends, to make educated predictions about a stock’s future performance. Their advice is often used by brokers and bank agents selling a client’s investments. 

Where to find financial analysts

To find the right financial analyst for your business, consider trying out a few different recruiting strategies: 

• Search online. Many financial analysts advertise their services on the internet. Make contact with these individuals to see if they’re interested in working with you in either a freelance or full-time capacity. 
• Ask other businesses in the area. Communicate with other businesses in your city to find out if they have recommendations for financial analysts. Gather information about potential candidates and reach out to them to set up interviews. 
• Post help wanted signs. Hanging flyers is a time-proven method of encouraging members of the community to apply for the open position. 
• Post your job online. Try posting your financial analyst job on Indeed to find and attract quality financial analyst candidates.

Skills to look for in a great Financial Analyst

A Financial Analyst is an essential role in a company who uses their analytical and forecasting skill and help align the financial performance.

• Bachelor’s degree in Finance, Economics or related field, (Masters Degree, an asset)
• Over 10 years of experience in successfully handling the similar role in large companies
• Professional qualifications like CPA/ CFA is an added advantage
• Proficiency in Financial modeling software like SAP, Oracle Financial, JD Edwards
• Excellent team player and implementer of changes
• Outstanding data interpretation, reporting and presentation skill

Writing a financial analyst job description

An in-depth job description is vital to finding the right candidate for the financial analyst role. The job description should include a specified job role with an exhaustive list of job duties and required skills.

When writing your financial analyst job description, consider including some or all of the following keywords to improve the visibility of your job posting . These are the most popular search terms leading to clicks on financial analyst jobs, according to Indeed data:

• Financial analyst
• Finance
• Accounting 
• Analyst
• Finance analyst
• Finance & accounting 
• Budget analyst
• Investment analyst
• Business analyst
• Accounting finance

Interviewing financial analyst candidates

Hiring the right candidate as a financial analyst safeguards the company from bad financial outcomes. Using their strong analytical insight, the financial analyst interprets the financial results of a company and analyzes them to align with its financial goals. Candidates should be comfortable answering questions about:

• Financial forecasting using financial model software
• Implementing the Financial Reporting Matrix
• How they’ve used statistical analysis and suggested recommendations for the gaps found in the company’s financial performance

Need help coming up with interview questions? See our list of financial analyst interview questions for examples (with sample answers).