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Overview of a Financial Analyst’s Job
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OverviewL E C T U R E T W O
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Key Skills
Job MarketKey
Terms Salaries
Job Descripti
on
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Actual Job DescriptionL E C T U R E T W O
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• From a major online job search engine, posted by a Fortune 500 Company.
• Summary
• This position on the Financial Analysis & Planning team will develop accurate and timely financial views for business owners (including senior management) for the purpose of understanding financial performance and managing the business. This includes: reporting and analysis of actuals, forecasts, and budgets; understanding revenue, gross margin, operating margin, and cash flow results for the business; tracking business results against key metrics; and communicating results to management. The Analyst will also develop and manage annual budgets and will perform special projects.
• Essential Duties
• Develop annual budget
• Prepare monthly variance analysis for senior management
• Prepare monthly operating expense accruals
• Assist with monthly forecasts and budget revisions
• Review monthly operating expense results with business owners
4www.slideproject.com
What Industries can I work in?
Industries
The concepts and general processes are the same for
any corporation. Once you are comfortable with the
concepts they can be applied to any industry.
Processes
Since every industry EARNS REVENUE differently and
has different costs of doing business then the way you
forecast or predict revenue and expenses varies
slightly.
Revenue
The course will focus on corporate financial analysis. If
you are working as an analyst in financial services your
focus in not on financial planning/analysis but rather
INVESTMENT analysis.
Financial Services
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Key TermsL E C T U R E T W O
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Use of past data and market analysis to predict future financial results. These are done on a quarterly basis.
Forecast
A financial plan of how a business will perform financially for the year. This is an exercise done once a year (usually completed by Sept./Oct) for the following year
Annual Business Plan/Budget
The proportion of revenue a company makes after it pays variable costs (materials, wages, etc.). This excludes one time items such as loan payments, interest, etc.
Operating Margin
The revenue a company makes minus cost of goods sold. This is essentially their profit. Example: It cost $1,000 to make the app, and we sold $3,000 worth of apps. Gross Margin is $2,000.
Gross Margin
Direct costs of materials/labor that it costs to produce a product. Example: If it takes 20 hours of labor at $50 an hour to produce a new IPhone app, then their cost of goods sold is $1.000.
Cost of Goods SoldPercentage of profit a company makes on products. Revenue-Costs of Goods Sold/Revenue. Using our previous example our Gross margin would be $3000-$1000/$3000= 66%
Gross Margin %
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Overview of Job DutiesL E C T U R E T W O
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01
03
02
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The first and most important step in the
financial planning process.
Comparing actual results to planned
results.
Forecast is an update to the annual plan.
Ongoing tracking of revenue, expenses and other metrics.
Annual Plan/Budget
Variance Analysis
Quarterly Forecast
Ad Hoc Reporting
OngoingEnd of Oct, Quarter Ends
Dec. 31st
End of July, Quarter Ends
Sept. 30th
End of April, Quarter ends
June 30th
End of Jan., Quarter ends March 31st
Starts in July/August,
Done By October
Annual Plan/Budget
Process
Quarter 1
Forecast
Quarter 2
Forecast
Quarter 3
Forecast
Quarter 4
Forecast
Monthly
Analysis
01 02 03 04 05 06
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Key SkillsL E C T U R E T W O
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Financial Analyst
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43
2
Excel
See the Big Picture
Data Analysis
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5
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Problem Solving
Communication
Math
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2
3
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JOB MARKET OVERVIEW
While these are US statistics, this career is in demand globally as many companies employ local financial analysts to work on financials for overseas divisions. In the past 2 companies I’ve worked at I had counterparts in the Philippines, Costa Rica, Argentina
and Ireland.
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CAREER PROGRESSION
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SALARIES
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SALARY PROGRESSION
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