Posted on December 1st, 2025 in Blog, Business

What Does a Financial Analyst Do?

In terms of finances, it’s crucial to have a solid strategy. Without a clear plan for long-term profitability or personal financial security, businesses and individuals risk making reactive decisions that can undermine short-term priorities and create ongoing uncertainty. A financial analyst can help prevent these issues by grounding decisions in data rather than assumptions.

By offering sound advice based on analytical evidence, those in the financial analyst role can help their clients make smart decisions that can yield the type of future dividends that assures a combination of profitability, stability, and security. They do this by evaluating financial data, assessing market trends, and aligning recommendations with a client’s goals. Entering this role can be an exceptional professional goal for those working toward a degree in accounting — or students pursuing studies in finance, economics, or business administration.

However, individuals considering the role should first explore what a financial analyst does.

Financial Analyst Role at a Glance

Financial analysts advise businesses and individuals on key decisions and strategies involving money management. Those in the role scrutinize a client’s financial data as well as economic trends and use their findings to devise plans to optimize long-term performance and economic stability. They also prepare written reports that explain their findings and outline recommendations that can guide a client’s financial decision-making.

Providing a detailed answer to the question, “What does a financial analyst do?” requires distinguishing the typical tasks they complete for a business versus an individual. For organizations, they may study corporate financial statements to determine valuations, evaluate the effectiveness of management, and meet with C-suite executives. They may also assess market conditions, budget forecasts, and risk factors that could affect long-term performance.

For individuals, they may learn about the client’s investment goals as they relate to long-term aspects of their life, such as retirement. Then, financial analysts apply this information to develop strategies to help them make informed decisions about saving, investing, and preparing for the future.

Because financial analysts strive to help businesses and individuals achieve specific financial goals, they can work in a wide range of industries. They can also work independently or as part of a business. Regardless of where they work, their role centers on analyzing financial information and offering data-driven insights that support financial stability and long-term planning.

How to Become a Financial Analyst

A financial analyst’s work carries significant implications for organizational or individual success. Because their recommendations can influence budgeting, investing, and long-term planning, aspiring analysts should understand the core steps that typically prepare them for the profession. These steps usually involve completing the right education, gaining any required licensure, and developing specialized expertise that aligns with the role they hope to pursue.

Here’s how to become a financial analyst.

Education Requirements

Financial analysts typically need an undergraduate degree related to finance, such as accounting or business administration. The duration of a bachelor’s degree program can vary. While full-time students can earn the degree in four years, it may take five or six years for a part-time student.

Some employers may also prefer candidates who have completed internships or advanced coursework — such as through a master’s degree program — in topics such as financial modeling, statistics, or corporate finance, as this practical experience can strengthen their job readiness.

Licensing Requirements

Licensure isn’t required for all financial analysts. However, analysts who buy or sell securities, make investment recommendations, or interact directly with certain financial products must obtain appropriate regulatory credentials.

A license can be obtained through a third-party organization, such as the Financial Industry Regulatory Authority (FINRA). Most licensure programs require sponsorship from an employer; because of this, it’s common for an employer to onboard a prospective financial analyst before licensure is officially completed. As a result, many candidates start their roles under supervision and complete the required licensing exams during the early stages of employment.

Certification Requirements

While certifications aren’t required for most financial analyst roles, they’re often recommended for those seeking to deepen their expertise or advance in the field. Earning a credential can signal strong analytical skills, a commitment to professional development, and deeper knowledge of areas such as investment analysis or portfolio management. Common options include the Chartered Financial Analyst (CFA), which is widely recognized within the industry.

Determining a Specialization

Several types of specializations are available for financial analysts to pursue. Common options include:

Portfolio managers: Financial analysts who oversee a client’s investments, including making decisions on how to invest funds
Fund managers: Financial analysts who primarily work for mutual and hedge funds
Rating analysts: Financial analysts specializing in assessing a client’s ability to repay debts
Financial risk specialists: Financial analysts who focus on detecting potential economic threats that can disrupt long-term strategies

Because of the wide range of career paths within the field, individuals should consider not only what financial analysts do but also the type of financial analyst they want to be. Choosing the right specialty can help professionals build deeper expertise and create a more meaningful career experience.

Financial Analyst Salary and Job Growth

A financial analyst’s work can be critical to an organization’s or an individual’s economic stability. The compensation associated with the profession reflects this level of responsibility, with the U.S. Bureau of Labor Statistics (BLS) reporting a 2024 median annual salary of $101,910. Several factors can influence an individual’s earnings in this role, including level of education, years of experience, area of specialization, type of employer, and geographic location.

The BLS also projects 6% job growth for the role between 2024 and 2034. This steady growth reflects ongoing demand for professionals who can analyze financial information, guide decision-making, and help organizations and individuals navigate increasingly complex economic environments.

Take the First Step Toward a Vital Career

What does a financial analyst do? The answer can vary depending on the specialization, but the various roles are all bound by the same goal: helping clients build a strong, stable financial future. Regardless of the specialization, financial analysts gather and interpret data, evaluate risks and opportunities, and help clients make informed financial decisions.

The Bachelor of Arts (BA) in Accounting degree program from Warner Pacific University Online can help you take the first step toward a steady, stable career. The program is designed to help you build a fundamental understanding of the most essential elements of accounting and financial management. This foundation prepares students to analyze, interpret, and communicate key financial information in various professional settings. WPU Online also offers business programs that can set students up for success in financial roles.

WPU’s faith-based approach to education will also allow you to approach finances from an ethical perspective. Learn how WPU Online can help you develop the skills needed to serve as a trusted economic ally.

Sources:
Financial Industry Regulatory Authority, About FINRA
Indeed, How to Become a Financial Analyst
Investopedia, “Financial Analysis: Definition, Importance, Types, and Examples”
Investopedia, “How to Become a Financial Analyst”
Investopedia, “Strategic Financial Management: Definition, Benefits, and Example”
U.S. Bureau of Labor Statistics, Financial Analysts