How To Become A Financial Analyst for 2025

Co-Founder and Chief Data Scientist

Entrepreneurs and businesses rely on financial analysts to gain insights on their financial health and performance. Given their extensive knowledge about finance, these professionals can offer recommendations, helping their clients earn more profits and resolve financial concerns. Although they have a projection accuracy rate of around 53% to 57%, they can use software solutions to considerably boost their accuracy.

This article features a step-by-step process on how to become a financial analyst and navigates the role's different forms and general responsibilities. It also shines a light on details that aspirants might want to take note of, like ideal certifications, potential career paths, the job outlook in the United States, and salary projections.

Key Things You Should Know About Becoming a Financial Analyst

A financial analyst analyzes financial data, creates financial models, and prepares reports to help businesses make informed decisions.
The path to becoming a financial analyst typically takes four to eight years, or more, depending on education and experience.
The most common skills on the resumes of financial analysts in the United States are financial analysis (9.4%), financial models (4.6%), financial data (4.6%), strong analytical skills (4.1%), variance analysis (3.8%), hyperion (3.4%), and customer service (3.3%).
The employment of financial analysts is set to increase by 9% from 2023 to 2033.
The average annual salary of financial analysts is $112,950, while their median annual salary is $99,010.
The industries that offer the highest average annual salaries are web search portals and other information services ($154,850), other investment pools and funds ($146,640), securities, other financial investment, and related activities ($139,750), pipeline transportation of crude oil ($130,520), and accounting, tax preparation, bookkeeping, and payroll services ($129,790).

What does a financial analyst do?
How to Become a Financial Analyst
What are the different types of financial analysts?
How long does it take to become a financial analyst?
What are the best certifications for financial analysts?
What skills make a financial analyst successful?
What are the biggest challenges financial analysts face?
Is pursuing an advanced degree beneficial for financial analysts?
Can a top online MBA Accelerate Career Advancement in Financial Analysis?
How crucial is continuous learning for career success in financial analysis?
How do financial analysts address regulatory challenges?
How does an online business administration degree enhance career prospects for financial analysts?
How can mentorship and networking accelerate career advancement?
Can a cheap executive MBA online accelerate career progression for financial analysts?
How can an entrepreneurial mindset enhance financial analysis?
What are the potential career paths of aspiring financial analysts?
What is the job outlook for financial analysts?
What is the average salary of financial analysts?
What types of software do financial analysts use?
Other Things You Should Know About Becoming a Financial Analyst

What does a financial analyst do?

A financial analyst analyzes financial data, creates financial models, and prepares reports to help businesses make informed decisions. They are often tasked to evaluate past and current financial reports, provide financial forecasting, develop financial strategies, prepare presentations detailing a company's operations, and make projections. Financial analysts research industry-specific financial developments and broad economic trends to evaluate investment opportunities and maximize financial performance. They also translate financial data into detailed reports and communicate with company executives to understand company needs.

Their key responsibilities include the following:

Financial Data Analysis: Financial analysts meticulously examine past and present financial reports, such as balance sheets and income statements, to gain a deep understanding of an organization's financial health.
Financial Modeling: Analysts construct sophisticated financial models, employing benchmarking and process analysis techniques, to forecast future performance, assess potential investment opportunities, and inform strategic decision-making.
Financial Forecasting: By leveraging current market conditions and competitive landscapes, financial analysts develop robust financial forecasts, utilizing historical and real-time data to create adaptable financial plans that guide companies through evolving economic climates.
Report & Presentation Development: Financial analysts transform complex data into clear, concise reports and presentations, communicating key financial insights, status updates, and risk assessments to stakeholders at all levels.
Investment Opportunity Research & Evaluation: These professionals conduct in-depth research into industry-specific developments and broader economic trends to identify and evaluate promising investment opportunities, considering factors like capital expenditures and depreciation.
Investment Recommendations: Based on their comprehensive analysis, financial analysts provide informed recommendations on individual investments and diversified portfolios, aligning with client objectives and risk tolerance.
Continuous Learning & Trend Monitoring: Financial analysts proactively stay abreast of evolving industry trends, emerging technologies, and shifting market conditions through continuous professional development, ensuring they provide cutting-edge insights and maintain a competitive edge.

The chart below shows the US states that employ the most financial analysts.

How to Become a Financial Analyst

The journey how to become a financial analyst involves obtaining a degree, gaining practical experience, and developing key skills. Aspirants can earn key certifications and licenses to boost their credentials. To illustrate a clearer picture, here are general steps one can follow:

Education: A bachelor’s degree is the first step toward becoming a financial analyst. While a Bachelor of Science in Finance is ideal, degrees in economics, accounting, statistics, or business are also highly relevant. Some employers may value degrees in mathematics, engineering, or biology, especially for analysts working in industry-specific finance roles. A strong foundation in financial principles, data analysis, and market research is essential for success in this field. Those who want to fast-track the education process can take accelerated finance degree online programs.
Licensing and Certifications: Professional certifications demonstrate specialized expertise and commitment. The Chartered Financial Analyst (CFA) certification is highly regarded, requiring a degree, experience, and exams, showcasing advanced analytical and investment management skills. The FRM is essential for risk management roles, validating expertise in risk assessment and mitigation. Financial Industry Regulatory Authority (FINRA) licenses may be required for specific positions, demonstrating regulatory knowledge and compliance.
Gain Experience: Practical experience is paramount for developing real-world skills. Experience in finance, economics, or accounting is highly valued, showing practical application of knowledge. Internships provide valuable training and networking opportunities, building professional connections and skills. Entry-level roles allow for skill development and building a professional track record, demonstrating competence and experience.
Independent Skill Development: Continuous skill development is essential for staying competitive. Independent projects, such as a finance blog or personal investment research, showcase initiative and expertise, demonstrating a proactive approach to learning. Staying informed about industry trends enhances professional qualifications and ensures up-to-date knowledge.
Prepare Resume: A strong resume highlights key qualifications: education, internships, certifications, experience, and skills. Emphasize transferable skills (analytical thinking, communication) and technical skills (financial modeling, data visualization, Python/SQL), showcasing a well-rounded skill set.

What are the different types of financial analysts?

Financial analysts specialize in various areas within the finance industry, with roles generally divided into buy-side, sell-side, and independent analysts. These diverse roles cater to different needs within the financial ecosystem, from managing investments to providing strategic financial advice. These types come as specializations or at least major courses of some of the most affordable online finance degrees.

Here are some specific types of financial analysts:

Investment Analyst: These analysts assist companies in developing and maintaining effective investment strategies, assessing company needs, identifying investment opportunities, performing valuation analysis, creating financial models, and preparing presentations.
Equity Research Analyst: Equity research analysts work for both buy-side and sell-side firms, creating research reports, recommendations, and projections about stocks and companies, often specializing in a specific industry or country.
Financial Planning & Analysis (FP&A) Analyst: These analysts focus on optimizing business processes, improving revenue, assessing finances and operations, and developing recommendations for expanding into new customer segments.
Risk Analyst: Risk analysts help companies assess financial risks associated with investments or expansion into new markets, providing advice to increase profits and limit risks.
Ratings Analyst: Ratings analysts evaluate the ability of companies or government agencies to repay their debts, assigning ratings to bonds to help investors determine risk.
Financial Qualitative Analyst: These analysts evaluate investment opportunities, make investment decisions, assess the performance of investments, and advise individuals and companies on whether to buy, sell, or hold securities.
Budget Analyst: Budget analysts help organizations monitor their finances by maintaining a balanced budget, preparing financial reports, and making recommendations for spending and planning.
Treasury Analyst: Treasury analysts manage a company's financial activities, including cash flow, assets, liabilities, and financial risk, to maintain financial stability and liquidity. They monitor and forecast cash flows, manage investments, optimize banking relationships, and ensure compliance with financial regulations.
Credit Analyst: Credit analysts assess credit risk by examining financial statements and related data to evaluate lending risks.
Accounting Analysts: Accounting analysts collect industry data, standardize company data, and provide financial ratios to facilitate peer group analysis.

How long does it take to become a financial analyst?

The path how to become a financial analyst typically takes four to eight years, or more, depending on education and experience. A bachelor's degree in a related field like finance or accounting is usually required, taking about four years.

Pursuing a master's degree, while not always mandatory, can be beneficial and adds one to two years. Gaining practical experience through internships and entry-level finance roles is a vital component and requires several years of work.

Furthermore, certifications like the CFA can significantly boost career prospects, but they also entail considerable time investment. Therefore, the timeframe for becoming a financial analyst is influenced by the chosen educational path, the pursuit of certifications, and the rate of career advancement.

What are the best certifications for financial analysts?

Professional certifications are vital for financial analysts looking to advance their careers. While a bachelor's degree often meets the baseline requirements for entry-level positions, earning specialized designations significantly boosts an analyst's expertise, credibility, and overall job prospects. These certifications allow analysts to deepen their knowledge in critical areas like accounting, corporate finance, investment management, and risk assessment.

Here's a look at some key certifications to consider:

Chartered Financial Analyst (CFA): A widely recognized designation in financial services, the CFA certification denotes expertise in securities and financial investments. It is suitable for professionals in portfolio management, capital market research and analysis, and investing. Requirements include a bachelor's degree, 4,000 hours of work experience, and passing three exams. Completing all three levels typically takes about four years.
Certified Public Accountant (CPA): Tax accountants, tax preparers, and financial analysts can benefit from the CPA designation 1. Prerequisites vary by state but typically include 150 semester/credit hours of accounting coursework and passing a four-part exam.
Financial Risk Manager (FRM): Offered by the Global Association of Risk Professionals (GARP), the FRM is a globally recognized credential for risk management in financial organizations. Requirements include two years of professional experience in financial risk management and passing a two-part exam.
Certified Management Accountant (CMA): This certification is suitable for those working in corporate accounting and demonstrates expertise in accounting and financial management. Requirements include a bachelor's degree or professional accounting certification, two years of work experience, and passing both parts of the CMA certification exam.
Certified Financial Planner (CFP): The Certified Financial Planner certification is for professional financial planners. It demonstrates an individual's competence, integrity, honesty, and diligence regarding financial matters. Prerequisites and requirements include 6,000 hours of professional experience or 4,000 hours of apprenticeship experience, a bachelor's degree, and passing a background check.
Certified Investment Management Analyst (CIMA): The Investments and Wealth Institute offers the CIMA certification for financial analysts, investment consultants, wealth management experts and financial planners. Prerequisites and requirements include at least three years of experience in the domain of financial services or a related field, completing the CIMA education program, and passing a background check

What skills make a financial analyst successful?

A financial analyst must develop a strong blend of technical expertise, analytical thinking, and soft skills to interpret financial data, make strategic recommendations, and communicate insights effectively. Below are the most critical skills for success in this role:

Financial Analysis & Modeling: Financial analysts must be experts in analyzing financial statements, cash flow reports, and key performance indicators to assess financial health. They should be proficient in building financial models and using valuation techniques such as DCF, CCA, and precedent transactions.
Data Analysis & Interpretation: The ability to analyze large datasets, identify trends, and derive actionable insights is essential for financial analysts. They must be proficient in using data visualization tools like Excel, Power BI, and Tableau.
Accounting & Financial Reporting: A solid understanding of accounting principles, including GAAP and IFRS, is crucial for financial analysts. They must be skilled in interpreting financial reports and conducting variance analyses. Aspirants who prefer accounting more than financial analysis can take the best and cheapest online accounting masters degree programs.
Business & Industry Knowledge: Financial analysts need a strong understanding of economic trends, market dynamics, and industry-specific drivers. They must be able to assess competitors and understand regulatory impacts on the industry.
Technical Skills: Proficiency in Excel, including advanced functions and VBA, is essential for financial modeling. Familiarity with financial software like Bloomberg and FactSet is also crucial.
Communication & Presentation Skills: Financial analysts must effectively communicate complex financial information to diverse audiences through strong presentation and writing skills.
Attention to Detail & Accuracy: Accuracy is paramount in financial analysis. Analysts must be detail-oriented and committed to ensuring the correctness of their work.
Problem-Solving & Decision-Making: Financial analysts must be able to evaluate risks and opportunities, and make data-driven recommendations.
Time Management & Multitasking: The ability to manage multiple projects and meet tight deadlines is crucial for financial analysts.
Networking & Relationship Management: Building and maintaining strong relationships with stakeholders is essential for career success.

According to Zippia, the most common skills on the resumes of financial analysts in the United States are financial analysis (9.4%), financial models (4.6%), financial data (4.6%), strong analytical skills (4.1%), variance analysis (3.8%), hyperion (3.4%), and customer service (3.3%).

What are the biggest challenges financial analysts face?

Financial analysts face challenges from evolving markets to the integration of AI, requiring a strategic approach to education, skill development, and career planning. They need to adapt to the ever-changing market standards and client preferences. Here are some of the major concerns they encounter:

Market Complexity: The explosion of new financial products and instruments presents a significant challenge for analysts trying to stay informed and make sound investment decisions. Keeping pace with these developments is no longer optional; it is essential for survival.
The Rise of Artificial Intelligence: AI and machine learning are rapidly changing the financial industry, automating tasks and developing new investment strategies. This puts pressure on financial analysts to upskill and find new ways to add value. Investment analysts must learn to harness this technology without losing their human judgment. Aspirants who wish to shift their focus to AI can pursue online masters in artificial intelligence programs.
Transparency and Accountability: Financial analysts are under increasing pressure to be transparent and accountable to their clients, requiring them to explain their investment decisions clearly. Some can take an accelerated accounting degree to boost their knowledge of the effects of financial laws, terms, and transactions.
Regulatory Landscape: Compliance is paramount for financial analysts, requiring them to stay informed about the ever-changing regulatory landscape. This includes a deep understanding of increasingly complex and dynamic frameworks, especially those related to data privacy, ESG regulations, and reporting standards.
Risk Management: Strong risk management skills are essential. Analysts must be able to identify, assess, and mitigate potential risks, particularly in today's volatile markets.
Market Volatility and Geopolitical Uncertainty: Global markets are experiencing increased volatility due to fluctuating economic growth and geopolitical tensions. Analysts must be prepared to navigate this uncertainty and manage its impact on investment strategies.
Evolving Investor Expectations: Investor expectations are changing, requiring analysts to adapt their communication and investment approaches to meet these new demands.

Is pursuing an advanced degree beneficial for financial analysts?

Advanced degrees can provide financial analysts with a strategic advantage in career progression by expanding their management capabilities and broadening their understanding of complex financial systems. An advanced degree often opens doors to leadership roles and specialized positions that demand both analytical rigor and broader business insight. Professionals may find that enrolling in an affordable online MBA program enhances their capacity to manage cross-disciplinary challenges and negotiate competitive opportunities in fast-evolving financial markets.

Can a top online MBA Accelerate Career Advancement in Financial Analysis?

Earning an advanced degree through a top online MBA can provide financial analysts with a strategic edge by developing leadership, management, and cross-disciplinary skills. This pathway equips professionals with industry-specific business acumen that enhances strategic decision-making and positions them for higher-level roles. An online MBA program often emphasizes real-world applications, enabling analysts to integrate financial modeling expertise with innovative business strategies and broaden their perspectives on global markets.

How crucial is continuous learning for career success in financial analysis?

Continuous learning underpins long-term success by enabling financial analysts to adapt to rapidly evolving market conditions, regulatory shifts, and technological advancements. By regularly updating their skill set through specialized courses, industry certifications, and software training, professionals can maintain a competitive edge in a dynamic environment. Engaging in advanced educational opportunities, such as the fastest MBA programs online, provides structured frameworks to deepen expertise and expand professional networks, ensuring sustained career growth and resilience in the face of industry disruptions.

How do financial analysts address regulatory challenges?

Financial analysts must continuously adapt to evolving regulatory standards and compliance demands. They achieve this by integrating robust risk assessment frameworks and leveraging updated financial models that incorporate regulatory changes. Staying informed through specialized courses, industry seminars, and advanced academic programs is essential to maintain compliance and competitive edge. In some cases, pursuing additional educational credentials, such as the cheapest online DBA, can enhance an analyst’s ability to interpret and apply complex regulations in a dynamic financial landscape.

How does an online business administration degree enhance career prospects for financial analysts?

Financial analysts can broaden their strategic capabilities by integrating advanced business education into their technical expertise. Leveraging coursework in leadership, strategic planning, and risk management sharpens decision-making skills crucial for navigating complex financial landscapes. Pursuing the fastest business administration degree online equips professionals with a comprehensive understanding of macroeconomic and operational dynamics, enabling more effective cross-departmental collaboration and innovation in financial strategy.

How can mentorship and networking accelerate career advancement?

Effective mentorship and networking provide critical insights and strategic guidance that directly influence a financial analyst’s career trajectory. Collaborating with experienced professionals and engaging in targeted networking activities can help uncover hidden opportunities, facilitate skill transfer, and offer real-time industry intelligence. Furthermore, integrating academic advancements—such as an MBA accelerated program—can reinforce leadership capabilities and strategic thinking, broadening the scope of professional growth. This focused approach to relationship-building and continuous learning is key to thriving in a competitive financial landscape.

Can a cheap executive MBA online accelerate career progression for financial analysts?

Advanced education programs, such as a cheap executive MBA online, can provide financial analysts with robust leadership training and refined strategic management skills. This specialized coursework focuses on developing decision-making capabilities, financial modeling strategies, and cross-functional coordination, all of which are crucial for stepping into senior analytical or managerial roles. Moreover, these programs offer networking opportunities alongside exposure to real-world business challenges, fostering a comprehensive skill set essential for driving innovation and efficiency in evolving financial markets.

How can an entrepreneurial mindset enhance financial analysis?

Financial analysts who incorporate an entrepreneurial mindset often approach challenges with innovative problem-solving techniques and strategic agility. This perspective enables professionals to identify niche market opportunities, optimize resource allocation, and generate forward-thinking financial strategies. Embracing business innovation and understanding diverse market dynamics not only enrich traditional analysis but also fosters a proactive response to industry disruptions. Exploring insights on what can you do with an entrepreneurship degree can further support analysts in integrating creative business acumen with robust financial methodologies.

What are the potential career paths of aspiring financial analysts?

A career in financial analysis offers a diverse range of opportunities across various industries, allowing professionals to specialize in different areas of finance. They can also apply their skills to flourish in closely related roles. Below are some common career paths for financial analysts, each presenting unique challenges and growth prospects.

Investment Analyst: Investment analysts evaluate investment opportunities, build financial models, and conduct due diligence for financial institutions. They may specialize in areas like M&A, capital raising, and portfolio management, progressing to roles like associates, vice presidents, and managing directors.
Corporate Financial Analyst: Corporate financial analysts work within companies, analyzing financial data for budgeting, forecasting, and strategic decision-making. They assess performance, track KPIs, and provide insights to executives, advancing to senior financial analysts, finance managers, directors of finance, and CFOs.
Equity Research Analyst: Equity research analysts analyze public companies, providing investment recommendations to investors. They conduct financial modeling, industry research, and stock valuation, potentially advancing to senior equity analysts or portfolio managers.
Portfolio Manager: Portfolio managers oversee investment funds, making investment decisions based on market research and risk assessment. Many begin as financial or equity research analysts.
Risk Analyst: Risk analysts identify and mitigate financial, market, credit, and operational risks. They use models and forecasting to assess potential losses, progressing to senior risk managers, chief risk officers, or financial risk consultants.
Financial Planning & Analysis (FP&A) Analyst: FP&A analysts support strategic planning, budgeting, and forecasting within companies. They provide financial insights to improve operations, advancing to finance managers, directors of FP&A, and CFOs.
Credit Analyst: Credit analysts assess the creditworthiness of individuals, businesses, or investments for financial institutions. They analyze financial statements and economic conditions, potentially becoming senior credit analysts, credit risk managers, or chief credit officers.
Hedge Fund Analyst: Hedge fund analysts conduct research and modeling to identify high-return investments, often specializing in specific asset classes. They may advance to hedge fund portfolio managers or partners.
Private Equity Analyst: Private equity analysts perform valuations, due diligence, and deal structuring for firms that acquire and manage businesses. Career progression includes associate, principal, and partner roles.
Financial Consultant/Advisor: Financial analysts can transition into consulting, advising individuals and businesses on financial matters. They may specialize in areas like investment planning or tax strategies, becoming senior financial consultants, wealth managers, or independent financial advisors.

What is the job outlook for financial analysts?

According to the United States Bureau of Labor Statistics, the employment of financial analysts is set to increase by 9% from 2023 to 2033, significantly faster than the national average (4%). This will bring the number of financial analysts in the country from 404,800 in 2023 to 442,800 by 2033. As such, graduates and other aspirants face a growing number of professional opportunities.

In the same period, aspirants can expect to find 30,700 openings for financial analyst roles annually. Currently, Indeed lists over 11,000 potential jobs for aspiring analysts in the United States. This shows that aspirants will not be hard-pressed to find worthwhile jobs, especially those with advanced qualifications like certifications and graduate degrees.

There are also sectors that offer more opportunities than others. The sectors that have the highest employment levels for financial analysts are securities, other financial investment, and related activities (84,550); management of companies and enterprises (44,590); credit intermediation and related activities (29,780); management, scientific, and technical consulting services (15,020); and insurance carriers (14,320).

What is the average salary of financial analysts?

Data from the BLS reveals that the average annual salary of financial analysts is $112,950, while their median annual salary is $99,010, which is more than double the collective median annual wage of all professions in the United States, $48,060. It is also considered one of the higher finance major salary packages. Financial analysts can gain even higher salaries if they pursue opportunities in industrial states and sectors that exhibit high demand for their services.

The US states that provide the highest average annual salaries to financial analysts are New York ($143,330), Montana ($128,720), New Jersey ($128,280), Massachusetts ($127,760), and California ($125,220). Many other states also offer six-figure salaries.

Meanwhile, the industries that offer the highest average annual salaries, as shown in the visual below, are web search portals and other information services ($154,850), other investment pools and funds ($146,640), securities, other financial investment, and related activities ($139,750), pipeline transportation of crude oil ($130,520), and accounting, tax preparation, bookkeeping, and payroll services ($129,790).

What types of software do financial analysts use?

Financial analysts utilize a range of software types to perform their duties, which include analyzing data, creating financial models, and generating reports. These platforms also typically integrate with other widely used applications so that any changes to financial data are consistent across the board. Here are the digital tools analysts commonly use:

Spreadsheets: These are fundamental tools for financial analysts, offering functionalities for organizing, manipulating, and analyzing large datasets, performing calculations, and creating financial models.
Data Visualization Tools: Data visualization tools help analysts translate complex financial data into interactive and visually compelling dashboards and graphs, making it easier to identify trends, patterns, and insights and communicate findings to stakeholders.
Financial Planning & Analysis (FP&A) Platforms: These platforms streamline financial processes such as financial consolidation, budgeting, and reporting. They often integrate with spreadsheet software and automate tasks to improve accuracy and efficiency.
Database Management Systems: These systems are used for online analytical processing (OLAP) and business intelligence (BI) applications, providing multidimensional analysis capabilities.
Statistical Analysis Tools: These tools offer advanced statistical capabilities for performing complex modeling and prediction tasks.
Accounting Software: This software assists in managing accounting tasks, especially for small to medium-sized businesses.

Here's What Financial Analysts Say About Their Jobs

"Being a financial analyst is like solving a fascinating puzzle every day, using data to uncover hidden opportunities and drive strategic decisions. The intellectual challenge is incredibly rewarding, and I love knowing that my insights directly contribute to a company's growth and success. It's a really fulfilling career." - Carlos

"I find great satisfaction in helping people and organizations reach their financial goals through sound analysis and planning. It's not just about numbers; it's about understanding human behavior, navigating market trends, and providing clarity in complex situations, which makes every project unique and interesting." - Sabrina

"The best part of being a financial analyst is the constant learning and evolution. The financial world never stands still, so I'm always challenged to expand my knowledge, refine my skills, and embrace new technologies, all while helping my clients make smart financial decisions." - Amir

Other Things You Should Know About Becoming a Financial Analyst

What is the difference between a financial analyst and a financial advisor?

A financial analyst primarily works with businesses, investment firms, or financial institutions to analyze financial data, evaluate investment opportunities, and create forecasts to guide corporate decision-making. In contrast, a financial advisor works directly with individuals or businesses to provide personalized financial planning, investment advice, and wealth management services. While financial analysts focus on market research and data-driven financial modeling, financial advisors emphasize client relationships and tailored financial strategies.

What is the difference between a financial analyst and a financial planner?

Financial analysts analyze financial data, evaluate investments, and build models to support strategic decisions for businesses and institutions. In contrast, financial planners work directly with individuals, creating personalized plans encompassing budgeting, retirement, and investment management. Essentially, analysts focus on market research and corporate finance, while planners specialize in personal financial goals and long-term wealth management.

What is the difference between a financial analyst and an accountant?

Accountants focus on the preparation, maintenance, and auditing of financial records, ensuring accuracy and compliance with regulations. Financial analysts, conversely, use those financial records, along with other data, to analyze performance, make forecasts, and provide recommendations for future financial decisions. Essentially, accountants provide the raw financial data, while financial analysts interpret and leverage that data for strategic purposes.

Do financial analysts need a master's degree?

A master’s degree is not required to become a financial analyst, but it can enhance job prospects, especially for senior or specialized roles in investment banking, portfolio management, or corporate finance. Many financial analysts start with a bachelor’s degree in finance, accounting, or economics and gain experience before considering a Master of Business Administration (MBA) or a Master’s in Finance. While a master's degree can provide advanced knowledge and networking opportunities, professionals can also advance through certifications like the CFA or FRM.

References:

BLS (2024, April 3). 13-2051 Financial and Investment Analysts. BLS
BLS (2024, August 29). Financial Analysts. BLS
Kumar, A. (2024, June 13). The Future of Financial Analysis: How GPT-4 Outperforms Human Analysts. LinkedIn
Zippia (2025, January 8). Finance Analyst Education Requirements. Zippia
Zippia (2025, January 8). Finance Analyst skills for your resume and career. Zippia