Treasury Analyst vs. Financial Analyst: What Are the Differences?

Treasury analysts and financial analysts are two important roles in the financial industry. Though they share some similarities, there are several key differences between the two positions. If you’re interested in a career in finance, understanding the difference between these two job titles can help you choose the right path for you. In this article, we discuss the similarities and differences between treasury analysts and financial analysts.

What is a Treasury Analyst?

Treasury Analysts are responsible for managing an organization’s cash flow and preparing financial reports related to the organization’s short-term investments and borrowing activities. They work closely with the organization’s accounting department to ensure that all financial reports are accurate and up-to-date. Treasury Analysts also develop and maintain relationships with banks and other financial institutions. They negotiate loans and lines of credit on behalf of the organization and monitor the organization’s exposure to risk. Treasury Analysts typically work in corporate finance departments or for financial institutions.

What is a Financial Analyst?

Financial analysts are responsible for providing accurate and timely financial information to their clients. They must be able to understand and analyze complex financial data, as well as communicate their findings clearly. Financial analysts typically work in banks, insurance companies, investment firms or accounting firms. They may also work for large corporations or government agencies. Financial analysts typically have at least a bachelor’s degree in a field such as finance, accounting or economics.

Treasury Analyst vs. Financial Analyst

Here are the main differences between a treasury analyst and a financial analyst.

Job Duties

Financial and treasury analysts share some of their job duties. They may both research financial data, such as stock prices or interest rates, to inform business decisions. However, a treasury analyst focuses more on the internal operations of a company, such as how it manages its finances internally. A financial analyst evaluates a company’s performance in the external market.

Another key difference is that a treasury analyst often works with IT to implement new systems for managing financial information. For example, they may design databases or software programs to help employees track and report financial information accurately. Financial analysts rarely do this, as they focus primarily on financial data rather than internal systems.

Job Requirements

To become a treasury analyst or financial analyst, you need a bachelor’s degree in accounting, finance, statistics, economics, business administration or a related field. For consideration in more advanced positions, it may help to pursue a master’s degree, but it is not a prerequisite for either position.

In addition to college, both professions may continue education through additional certifications. A CPA license, which teaches accountants how to file taxes, is accredited through the American Institute of Certified Public Accountants and offered as a national exam. A CFA license allows financial analysts to advise clients through decision-making in investment opportunities. Certifications are not mandatory in either position but allow for more growth opportunities and can be an outlet for gaining more experience in the financial field through extensive training hours.

Work Environment

Financial analysts typically work in an office setting, but they may also travel to meet with clients and attend conferences. They spend most of their time sitting at a desk or table, using computers and other technology to complete projects.

Treasury analysts often work for banks, so they usually work in an office environment. However, some companies hire treasury analysts as consultants, which means that they can work from home or on the road. Treasury analysts who work for banks may have more regular hours than financial analysts because they must be available during banking hours.

Skills

Both treasury analysts and financial analysts need to have excellent analytical skills. They use these skills to examine data, identify trends and make recommendations about financial decisions. They also both need to be able to effectively communicate their findings to those who may not have the same level of financial knowledge.

Treasury analysts focus on managing a company’s cash flow and investment portfolio. They need to have strong math skills to calculate interest rates and perform other financial analysis. They also need to be able to use financial software programs to track investments and manage accounts. Financial analysts also need strong math skills. In addition to performing financial analysis, they often develop financial models to forecast future earnings. They also need to be familiar with accounting principles to prepare financial reports.

Salary

Treasury analysts earn an average salary of $70,250 per year, while financial analysts earn an average salary of $71,352 per year. Both of these average salaries may vary depending on the size of the company at which you work, location of your job and the level of experience you have prior to pursuing either position.