What Does a Junior Financial Analyst Do?

Junior financial analysts are entry-level positions in the finance field. They commonly work with more senior members of their team to analyze and interpret data, identify trends, and make recommendations based on their findings.

Junior financial analysts may also be tasked with creating reports or presentations that summarize their findings for internal or external stakeholders.

Junior Financial Analyst Job Duties

Junior financial analysts typically have a wide range of responsibilities, which can include:

• Monitoring and analyzing business trends, competition, and customer preferences to identify potential opportunities for improvement or new products or services
• Providing support to senior analysts in tasks such as data entry, preparing reports, and assisting with presentations
• Preparing reports that detail business performance metrics, including revenue growth or decline, profit margins, and customer satisfaction scores
• Supporting financial audits by identifying issues that may require further investigation or consultation with other departments, such as the legal department or human resources
• Managing the preparation of budgets and forecasts, often using computer software such as Excel or Bloomberg terminals
• Preparing presentations and proposals for senior management on a variety of topics, including new product launches, investment opportunities, or strategic initiatives
• Analyzing financial data to predict trends and make recommendations based on findings
• Providing guidance to junior staff regarding financial matters and processes
• Conducting market research to identify new opportunities for growth within an industry or geographic area

Junior Financial Analyst Salary & Outlook

Junior financial analysts’ salaries vary depending on their level of education, years of experience, and the company size and location. They may also earn additional compensation in the form of bonuses.

• Median Annual Salary: $66,500 ($31.97/hour)
• Top 10% Annual Salary: $87,500 ($42.07/hour)

The employment of junior financial analysts is expected to grow at an average rate over the next decade.

Demand for these workers will stem from the need to hire more junior financial analysts in fields such as information technology and healthcare, where demand for senior financial analysts is high. However, the increasing complexity of business processes and the use of analytics in decision making are expected to limit the overall growth of the field.

Related: Junior Financial Analyst Interview Questions and Answers

Junior Financial Analyst Job Requirements

A junior financial analyst typically needs to have the following:

Education: Most employers require junior financial analysts to have a bachelor’s degree in finance, accounting or a related field. Some employers prefer candidates who have a master’s degree in business administration (MBA). Relevant coursework includes accounting, finance, economics, business law and business communication.

Training & Experience: Junior financial analysts typically receive on-the-job training from senior-level analysts or managers. This training helps junior financial analysts learn the specific processes and procedures of the company. They also learn how to use the company’s financial analysis software.

Certifications & Licenses: Although junior financial analysts do not need certifications to get hired, earning a certification can improve an applicant’s chances of getting a job and increase the range of possible salaries they could be offered.

Junior Financial Analyst Skills

Junior financial analysts need the following skills in order to be successful:

Accounting skills: Accounting skills are a necessary skill for junior financial analysts. They use accounting skills to record financial data, create budgets and analyze financial data. Junior financial analysts should have a basic understanding of accounting principles, including double-entry bookkeeping, to be successful in the role.

Communication skills: As a junior financial analyst, you may be required to communicate with clients and other employees. Effective communication skills can help you build rapport with others and convey information effectively.

Data analysis skills: Data analysis is the ability to interpret and understand large amounts of data. Financial analysts often work with large amounts of data, so data analysis is an important skill for this profession.

Critical thinking skills: Critical thinking skills are the ability to analyze information and make decisions based on the information you have. As a financial analyst, you need to make decisions based on the information you have. This includes making financial recommendations, creating budgets and forecasting financial information.

Business acumen: A junior financial analyst may be exposed to a variety of financial concepts and processes, but they may not have the experience to understand the implications of certain business decisions. Having strong business acumen can help a junior financial analyst understand the impact of certain business decisions on a company’s financial health.

Junior Financial Analyst Work Environment

Junior financial analysts typically work in the financial department of a company and report to a senior financial analyst or financial manager. They may also work in the accounting department if the company is large enough to have both departments. Junior financial analysts typically work regular business hours, although they may occasionally have to work overtime to meet deadlines. The work environment is usually fast-paced and deadline-oriented, and junior financial analysts must be able to handle multiple tasks simultaneously. They must also be able to work well under pressure and meet deadlines.

Junior Financial Analyst Trends

Here are three trends influencing how junior financial analysts work. Junior financial analysts will need to stay up-to-date on these developments to keep their skills relevant and maintain a competitive advantage in the workplace.

The Need for More Technical Skills

The financial industry is becoming increasingly technical, and this is having a major impact on the role of the junior financial analyst. In order to be successful in this position, candidates will need to have strong technical skills, such as data analysis and reporting.

As the financial industry becomes more complex, businesses will need professionals who can not only understand the numbers but also make sense of them. This requires a deep understanding of how to use technology to extract meaning from data.

More Focus on Cybersecurity

As businesses become more reliant on technology, the need for cybersecurity professionals has grown exponentially. This is because cyberattacks are becoming more sophisticated and difficult to detect, which makes it essential for companies to have professionals on staff who can protect their systems.

Junior financial analysts can capitalize on this trend by becoming experts in cybersecurity. They can do this by taking courses in college or through online training programs. Additionally, they can work with their employers to develop policies that help protect company data.

Faster Pace of Change

The financial world is changing at a faster pace than ever before. This means that junior financial analysts need to be able to adapt quickly in order to keep up with the latest trends.

In order to succeed in this environment, junior financial analysts need to be able to think creatively and be willing to take risks. They also need to be able to communicate effectively with both clients and colleagues.

How to Become a Junior Financial Analyst

A junior financial analyst career path can be a great way to start your finance career. It’s a good way to get exposure to different areas of finance and learn about the business side of things. As a junior financial analyst, you’ll likely have a lot of responsibility and be expected to work hard. This is a great opportunity to prove yourself and show what you’re capable of.

As you progress in your career, you may want to consider specializing in a particular area of finance. For example, if you like working with numbers and want to be involved in the day-to-day operations of a company, you may want to become an accountant. If you enjoy working with people and want to help companies grow their revenue, you may want to become a marketing manager.

Advancement Prospects

Junior financial analysts typically advance to senior financial analyst positions. In some cases, they may move into management roles, such as financial analyst manager or finance manager. With experience, financial analysts may also become certified public accountants (CPAs) or certified financial analysts (CFAs). Some financial analysts may eventually start their own financial consulting firms.

Junior Financial Analyst Job Description Example

At [CompanyX], we’re looking for a junior financial analyst to join our team and help us continue to grow and succeed. The ideal candidate will have a strong interest in finance and accounting, as well as excellent analytical and problem-solving skills. He or she will be responsible for assisting senior financial analysts in the preparation of financial reports, conducting financial analysis, and participating in special projects. This is a great opportunity for a motivated individual who is looking to develop his or her skills in the financial industry.

Duties & Responsibilities

• Understand and explain variances in financial results to management
• Assist in the development of annual budgets and monthly forecasts
• Maintain accurate records of actual results versus budget and forecast
• Understand and document business processes to support system implementations
• Develop ad hoc reports and analysis as requested by management
• Support month-end close process by preparing journal entries and account reconciliations
• Analyze trends and recommend actions to improve financial performance
• Assist with special projects as needed
• Prepare presentations for management review
• Perform research on industry trends and best practices
• Participate in cross-functional teams to resolve process issues
• Maintain a high level of confidentiality with sensitive information

Required Skills and Qualifications

• Bachelor’s degree in business, finance, accounting, economics, or related field
• 1-3 years professional experience in an analytical role
• Exceptional quantitative and analytical skills
• Advanced Excel skills, including VBA
• Experience with SQL, Tableau, and/or other data visualization tools
• Strong attention to detail

Preferred Skills and Qualifications

• MBA or other advanced degree
• CFA, CPA, or other professional certification
• 4+ years professional experience in an analytical role
• Experience in the financial services industry
• Knowledge of SAS, R, or Python