Financial Analysts and Business Analysts are two strong pillars of the company. With the findings from their respective roles, business decisions are made.
The financial analyst studies financial data, makes periodic reports, and identifies trends and forecasts. It is with the periodic reports that they recommend the company buy or sell certain securities.
Business Analysts use the company data and, with the help of their findings, they help the top management take informed decisions for the growth of the business. Unlike the report generated by the financial analyst, this data is related to the day-to-day operations of the business.
BA studies business models, workflows, and processes. As marketing analysts, they can also evaluate marketing and sales data. The company also calls BA to streamline and improve operations and see if any inefficiency is prevalent.
Overview of a Business Analysts
Business Analysts are professionals who develop efficient business solutions, collaborate with executives in different departments, analyze business data, research the industry, identify business problems, and provide technical solutions. Alongside, they make changes within the organization, its systems and software.
Overview of a Financial Analysts
Financial Analysts are finance professionals who help navigate investments, set budgets, collect financial data, analyze them and make decisions on the investment process and the business’s financial needs.
They maintain spreadsheets for investments and financial transactions and are the ones who identify ways to reduce waste, model accounting theses, save money, and communicate with investors.
FAs help clients create financial plans to help reduce debt, analyze the profit and loss of the company, and enhance earnings.
Job Description of a BA
Business Analysts perform a variety of functions within the organization depending on the department. Hence their job description varies according to the department. For example, a Business Analyst in the marketing team is responsible for evaluating marketing and sales data.
At the same time, a BA from the technical team is responsible for monitoring and updating systems.
A Business Analyst can be a
- System analyst, and many other job roles.
- Data Analyst
- Product Manager
- Marketing analyst
- Enterprise Analyst
- Business Consultant
- Requirements manager
Job Description of a FA
Financial Analysts work on investments, analyze an organization’s financial and business performance and work towards improving the company’s financial status and anticipating future changes. They help the management to make strategic and informed decisions, do in-depth market research and work on various other financial aspects.
A Financial Analyst is an umbrella term for
- Portfolio Manager
- Fund Manager
- Investment Analyst
- Rating Analyst
- Risk Analyst
Financial Analysts are categorized into two types: buy-side analysts and sell-side analysts.
Buy-side analyst: For firms that have a lot of money to invest, buy-side analysts create investment plans. Hedge funds, insurance firms, independent money managers, and charitable groups with substantial endowments, such as some colleges, are examples of institutional investors.
Sell-side analyst: Financial services sales agents who sell stocks, bonds and recommend other assets are the sell-side analysts.
Some analysts work for business publications or research firms that are separate from the purchase and sell sides.
Job Duties Of Business Analyst
The job duties of a BA in a company include
- Holding calls and meetings with business leaders during implementation and after completion
- To provide training to departments on how to implement and track these metrics among their employees
- Adapting original changes to accommodate new needs or employee responses
- Giving presentations to business owners and senior personnel on their research findings and the potential solutions which can be implemented.
- Reviewing company data, including human resources (HR) documents, financial statements and operational policies
- Putting across the technological advancements for the companies to do well in the market.
- Developing metrics on which to track the progress of new changes or initiatives
Job Duties Of Finance Analyst
Finance analysts work with the heads of the accounting and finance departments. Their duties include
- Investigating discrepancies in financial statements and correcting miscalculations
- Providing assistance in terms of investments and other finance work
- Helping teams wholly with the tax preparation activities.
- Creating financial forecasts and planning materials to ensure clients understand how to accomplish their financial goals
- Reviewing a business’ current and past financial data by looking at general ledgers, accounts receivable, accounts payable, income statements, tax records and annual reviews
- Guiding and monitoring clients on better financial investment opportunities, practices, and potential risks.
Finance Analyst & Business Analyst Skills Comparison
While most of the skills overlap, there are a few skills that are specific to both.
Skills that both FA and BA s require are
- Interpersonal skills
- Communication skills
- Problem-solving skills
- Technical skills
- Leadership and management skills
- Critical thinking
- Analytical skills
|Finance Analyst should be able to operate autonomously
|Business Analysts should have knowledge thorough knowledge about Microsoft Office (Word, Excel, and PowerPoint)
|Comfortable in presenting financial dealings to the top management of the company
|Maintain a team-oriented and collaborative atmosphere with a feeling of leadership
|A High Level Of Financial Knowledge is required
|High Level Of Technical Knowledge is required
|In depth understanding of the process, flow and structure of the organization
|Simplify and improve the processes within the organization
Business Analyst career is broad, diving into different sectors with ample opportunities. On the other hand, a FA is a confined option, but they get skilled exponentially in accounting and finance, which provides the prospect of growth.
PGDM at VJIM offers a variety of specialized courses in Finance and Business Analytics. The PGDM course is integrated with an industry-driven curriculum, unique pedagogy, strong industry interface and alumni network, and the institute prepares students to be industry ready, leading their careers to an upright growing curve.
To know more about VJIM and the admission details, contact 9849800819 or visit our website https://vjim.edu.in/