4 Additional Skills You Need to Become a Financial Analyst With an Accounting Degree

Accounting is a profession where you can make your investment pay off. Too often, students graduate from school without knowing whether or not their degrees will be worth the time and effort invested in them, but that’s not the case with an accounting degree.


The prospects open up as soon as a candidate decides to pursue a Master’s in Accounting. It focuses on financial reporting and legal guidelines. The coursework includes taxation, business IT, statistics, and more to prepare students for their future in this profession—unlike the Bachelor’s program, which primarily teaches about academic research related work ethics while also introducing you to various tools needed within your professional life outside of classroom time


The possible career pathways for accountants include Financial Controller, Internal Control Analyst, Financial Analyst, Mortgage Underwriter, Financial Planning/Budget Coordinator, Credit (Risk) Analyst, Sales Analyst, and many more.


One of the most demanding careers paths includes becoming a financial analyst for a firm. Financial analysts are often found in senior positions at companies and corporations. As a financial analyst, you’re responsible for financial planning, analysis, and projection that help determine future company revenue streams as well as expenditures. However, you are expected to excel in many areas of finance that require specific skill sets. You can set yourself apart from other professionals by becoming proficient in additional skills that go beyond your primary duties as an accountant.


In this blog post, we are going to explore four additional skills you need to master to become a successful financial analyst:

Capital Structural Analysis

Whether you have attained an online MACC degree or on-campus, it does not matter. Financial analysts are expected to know about the financial structure of their firm.


The concept of structural analysis is related to business enterprise. It provides a simple notion for users who want to engage with different entities in their company from many angles, such as how employees are organized and what they do. A better understanding can be gained through this type of approach because there’s no need to go back and forth between sheets or charts when using traditional databases, which would take too long instead of giving someone all information at once.


The analysis of a company’s finances is essential in maintaining its stability, especially when changes—such as an increase in interest rates and decrease in sales caused by competition from other companies—happen within or from outside that could negatively impact the organization. This process should be done frequently to remain prepared for what may come next regarding your own business and any external investments.

Financial Research Skills

The financial research analysis is the process of evaluating businesses, projects, budgets, and other finance-related transactions to determine their performance. Typically this will involve analyzing whether an entity such as a company or individual has enough financial stability for investment in terms of its solvency (being able to provide money), liquidity (having access at any point), and profitability (so it can be judged worthy).


This skill set allows the analysts to develop financial statements, a crucial tool for investors and entrepreneurs when analyzing company finances. One of the most common ways that analysts do their job is by calculating ratios from these reports and comparing them against those found in other organizations or historical performances within your organization. This process allows them to determine how financially healthy a company is at the present as well as future projections.




Risk Analysis

Risk analysis is the process of assessing a company’s likelihood of adverse events. It refers to uncertainty in forecasted cash flow streams, portfolio or stock returns, and possible future economic states for projects under study within corporations as well as governments’ sectors. Financial analysts are expected to inform the stakeholders regarding the updates of the risks involved in the financial decisions of the firms.


The analysis usually starts by identifying what could potentially go wrong. Those negatives must be weighed against a probability metric that measures the likelihood of an event occurring and then estimated to determine how much impact it would make if this did happen. Some risks, such as market or credit hazard, can only be reduced through hedging, while others, like currency fluctuations depend on purchasing insurance (or otherwise protecting yourself).


Financial analysts are also expected to study the market and perform quantitative and qualitative researches based upon the targeted firms. In addition to understanding the risks of an investment, a risk model is built using simulation or deterministic statistics. Assumptions and random variables from input data are fed into this equation which assigns numerical values for each type of potential outcome based on how likely it will happen in a particular situation.

Business Intelligence

Financial analysts are essential to the success of any company. To make sound and informed decisions, they need access to accurate information about inventory levels, sales trends, labor hours allocated per week for each product line – all sorts of things that can be gleaned from enterprise resource planning software (ERP). ERPs like Oracle or SAP help you manage your supplies better than ever before. These tools and softwares are a part of business intelligence so that tasks are performed within a few seconds.


Also, business analytics software like Tableau is extremely useful for understanding the data and providing insights. It should be used by individuals who can convey information effectively, which will help explain what they are talking about to others in your company.

Final Thoughts

Becoming a financial analyst with an accounting degree is not easy. You need to have the right skills and expertise in order to make it happen. The four fundamental skills you need are Capital Structural Analysis, Financial Research Skills, Risk Analysis, and Business Intelligence. These will help you move up along the corporate ladder and allow more opportunities for growth within your company. If you want to become successful in this industry, it takes time, hard work, and dedication, but the rewards will make it worth every second.




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