The business world is growing day by day. New companies enter the market with a desire to get themselves established. Analysts help organizations to make crucial decisions that have long-term effect on routine business operations.
Business analysts and financial analysts play a vital role in the process of business decision making. They both examine the data gathered from clients to make recommendations in accordance with business goals of an organization.
The findings recorded by both the analysts tend to influence important business decisions.
Both Business analyst and financial analyst work together to streamline business procedures, thereby helping an organization to gain a better understanding of the investments, operations and cash flow.
A business analyst is the person who analyzes a company’s technological aspects and the businesses processes which are mandatory for a company’s operations. An organization hires business analysts to closely monitor and analyze a particular aspect of business. These analysts are experts in their specific field; therefore, they can assist the company in addressing their shortfalls, or make the right decision to solve a certain problem.
It is a job of the business analyst to point out the business practices that are not productive or result-oriented. In accordance with their recommendations, companies rectify those wasteful practices. Business analysts can recommend a budget cut or headcount reduction, if it boosts the productivity and efficiency of the company. This will eventually result in the higher profits for the company in the long run.
A financial analyst deals with the financial and investment policies of the business. A financial analyst is supposed to research, analyze and interpret the financial and accounting information of a company. He further analyzes the business model of the company. His findings are very important as they help a business to manage its budget. They have a foresight to predict the outcome of a company’s financial decisions.
Financial analysts are responsible to help an organization in formulating investment-related strategies. They assess the performances of bonds, stocks, cash flows and other types of investments so that the organization can achieve the best-possible return on investment (ROI) for the said company. At times, financial analysts also assist clients to invest and sell their equities, like stocks and bonds.
It is the duty of a financial analyst to conduct intensive research of the market. This will help him come up with a better analysis report. He can find better investment options that are in line with the company’s investment plans.
Similarities between business analyst and financial analysts
A company may call different analysts for help while making investment and business decisions. Both business and financial analysts work together to aid a business while working in the same perimeters.
One of the most important similarities between a business analyst and financial analyst is that they both have the same qualification. They both need to be critically active to study the numerical data involved in the statements and other business records.
Both business and financial analysts should have strong interaction and interpersonal skills while dealing with the clients. Remember that communication is the key to any successful business. If their communication skills are good, it is easier for them to deal with their clients and share their perspective and ideas with them.
Differences between business analysts and financial analysts
Even though the base of business and financial analyst is the same and they possess skills, yet they both are significantly different from one another. The data they have to analyze, the field of expertise, set them apart.
The main duty of a business analyst is to work on maximizing the efficiency and profits of the company. On the other hand, the financial analyst has to focus on maximizing the ROI.
It is a financial analyst’s responsibility to examine the stock market as any fluctuation in stock market operations will directly affect the financial decisions of the company. Whereas it is a business analyst’s job to assess internal operations within a company to determine the company’s growth in terms of productivity.
Career – business analyst vs financial analyst
A business analyst and a financial analyst both have lucrative careers.
A financial analyst makes investment decisions by analyzing the financial data and predicting forecasts about the markets. Meanwhile, a business analyst helps the management to make business decisions by keeping a close eye on its day-to-day operations, business models and technical aspects.
Both careers are highly paid. Whichever field you choose, you should have complete command and professional acumen to show your skills.