What Does a Financial Analyst Do?
Leaders who approve budgets, prices and big projects need numbers they can act on. As a financial analyst you'll build forecasts, compare results with the plan and write up the case for or against major spending. This might involve capital projects, pricing, staffing models or investment reviews at a company, hospital or university.
Also known as: Principal Financial Analyst, Senior Financial Analyst
Financial Analyst Duties and Responsibilities
The primary responsibilities of a financial analyst include:
- Build and update financial models that link revenue, expenses, cash flow and the balance sheet.
- Compare monthly results with budget and forecast, and explain the main variances in plain terms.
- Prepare business cases for new programs, equipment or facilities, including payback and net present value.
- Analyze pricing, volume and cost data to find where margins are slipping.
- Create dashboards in Power BI, Tableau or Excel for department heads and executives.
- Pull data from the ERP and data warehouse using SQL or built-in report tools.
- Run scenarios on interest rates, enrollment or sales volume for the annual plan.
- Present findings to finance leadership and answer follow-up questions on assumptions.
- Review capital requests and track approved projects against their original budgets.
- Mentor junior analysts at senior and principal levels and check their models for errors.
Required Skills and Qualifications
To succeed as a financial analyst, you will need the following skills and qualifications:
- Advanced Excel modeling
- SQL and a BI tool such as Power BI or Tableau
- Corporate finance basics: NPV, IRR and cash flow
- Enough accounting to read and tie out financial statements
- CFA charter, useful mainly on investment-focused teams
- Clear slides and short memos
- Curiosity about why the numbers moved
- Bachelor's degree in finance, accounting or economics
Education and Training
Entry is open to graduates in finance, accounting, economics and even engineering, as employers are interested in candidates who can model numbers and explain them. A bachelor's degree is the typical entry level, according to BLS. Most learn the business side on the job. Senior and principal analysts often hold an MBA or the CFA charter.
Salary and Job Outlook
Typical pay: $79,290 - $133,340 per year, with a median of $102,740.
The range covers the middle half of earners nationwide. Source: U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics, May 2025, Financial and Investment Analysts.
According to BLS, employment of financial and investment analysts is projected to grow about 7 percent from 2025 to 2035, with roughly 24,700 openings a year. That group includes investment analysts at banks and funds as well as the planning analysts who work inside companies and universities. BLS put the group's median pay at about $103,000 in May 2025. Analysts who pair modeling with clear writing are more likely to move up to senior and principal titles.
Outlook source: U.S. Bureau of Labor Statistics, Employment Projections, 2025 to 2035, Financial and investment analysts.