6 Reasons Your Business Needs a Financial Analyst
Stop shooting in the dark. Make accurate business decisions by working with top Financial Analysts from The ROOM.
Data is the new oil. But data in itself is just a collection of numbers. For it to be useful, it has to be analysed and processed – that’s where a Financial Analyst comes in.
The U.S Bureau of Labour Statistics reports that the demand for Financial Analysts continues to grow with increased economic activity. Overall, employment of Financial Analysts is projected to grow 9 percent from 2021 to 2031, faster than the average for most occupations. Financial Analysts provide insights that can completely transform a business, and smart companies are now taking advantage of that.
Depending on the demands of the company, Financial Analysts might play varying roles – they can track and categorise an organisation’s transactions, improve accountability on how and where money is spent, and generally assist with financial analysis, reporting, and recommendations. Basically, Financial Analysts are a need, not a nice-to-have.
Nonetheless, for those that still need convincing, here are 6 reasons you should consider hiring a Financial Analyst for your business.
- Understand your business’ strengths and shortcomings
Think of a SWOT analysis, but with a focus on finances. That’s one of the things Financial Analysts do. They can help provide insight into processes that play to a business’ benefit or detriment; they can also identify possible opportunities and probable threats. Financial Analysts can provide an overall picture of a company’s current and potential financial standings, helping the company to plan, and pivot for optimisation. A good Financial Analyst will pinpoint your company’s strengths and weaknesses, allowing you to continue to profit from the things your company is already good at, while also identifying issues and potential solutions.
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- Improve financial efficiency
Financial Analysts are data wranglers. They examine the facts and figures from company expenses and can offer suggestions on how to curb wasteful spending and improve financial efficiency. One department could be the star player on your team – raising profits and the company’s profile – while another might be less effective – draining company resources and funds. A good Financial Analyst will help you identify which is which. By comparing company data to similar businesses, a Financial Analyst may also find that a business is spending significantly more than average in a particular category. A business’s efficiency can be greatly increased with the use of this critical information. - Forecast market trends
Although no one can predict the future, Financial Analysts can give you quite a good glimpse of what might happen based on historical data and current market trends. This can assist a company in being ready for its requirements in the future: including employing staff, buying supplies, and identifying periods of higher and decreased activity. These projections are reasonably helpful in predicting issues that an organisation might not have anticipated.
- Communicate insights from financial data
Internal reports and dashboards are a part of the daily life of an Analyst. Whether it’s presenting key performance indicators (KPIs) or tracking actual vs. budgeted results, it’s imperative to the company that information be clearly presented, timely, easy to understand, accurate, and insightful.
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- Develop optimal pricing strategies
Financial Analysts help companies with optimal pricing strategies – getting the right price point to ignite demand. This involves doing fieldwork and talking to different retailers and customers. A company might discover that they may not be appropriately valuing what they are selling or might be chasing away potential customers or clients with their pricing, resulting in a loss of revenue. With help from a Financial Analyst, a business can increase its profitability by developing a pricing structure that makes sense for them. Internal reports and dashboards are a part of the daily life of an Analyst. Whether it’s presenting key performance indicators (KPIs) or tracking actual vs. budgeted results, it’s imperative to the company that information be clearly presented, timely, easy to understand, accurate, and insightful. - Manage spending through budgeting
Financial Analysts can assist organisations with creating a reasonable budget, accounting for all of their costs, and accounting for anticipated increases and decreases. Companies will reap long-term benefits and maintain spending accountability by sticking to budgets backed by Financial Analysts.
Are You Finally Convinced That You Need a Financial Analyst?
Visit www.theroom.com to see what a skilled Financial Analyst can do for you or your business. Access a pool of highly motivated, tech-savvy Analysts – all of whom are certified through our training partner, the Corporate Finance Institute. Don’t miss out on the opportunity to tap into their skills and insights, enabling you to make better business decisions, reduce your costs, and gain visibility into your financial operations.
The ROOM is home to a highly specialised community of agile digital talent, connecting individuals and companies across the globe with the skills and resources they need to future-proof their teams and thrive in the new world of work.