A career in financial analysis offers strong job stability, competitive pay and clear paths for advancement. If you’re drawn to working with numbers, evaluating investments and helping organizations make sound financial decisions, learning how to become a financial analyst is a practical first step toward a rewarding business career.
Financial analysts assess the performance of stocks, bonds and other investments, then use that analysis to guide decisions for businesses, banks and individual clients. Earning a bachelor’s degree, particularly in a field like business administration, is the most direct route into the profession, giving you the analytical foundation and financial knowledge employers look for in entry-level candidates.
The online Bachelor of Science in Business Administration (BSBA) program from Arkansas State University (A-State) provides the business fundamentals, financial coursework and critical thinking skills that prepare graduates to pursue a career as a financial analyst and a wide range of other business roles. Courses are delivered fully online, making the program accessible to working adults who want to build business credentials without pausing their careers.
What Does a Financial Analyst Do?
Financial analysts guide businesses and individuals in making investment decisions and managing financial risk. Their work involves gathering financial data, studying market trends and producing reports that help organizations plan budgets, evaluate investments and respond to economic shifts.
According to the U.S. Bureau of Labor Statistics (BLS), financial analysts work in banks, pension funds, insurance companies and other businesses, making this one of the more versatile business careers in terms of where you can build experience. This range of employers means analysts can often find roles that align with a specific industry interest, whether that’s healthcare finance, government budgeting or private investment management. The sections below outline the main types of financial analysts and their daily responsibilities.
Types of Financial Analysts
The financial analyst title covers several specializations. Buy-side analysts work for investment firms and mutual funds, recommending securities to purchase. Sell-side analysts work for brokerages and investment banks, producing research for clients and traders.
Others work in areas like equity research, credit analysis or risk assessment. Some analysts move inward, into one company’s own planning. They typically land in corporate finance or financial planning and analysis (FP&A) roles.
That path trades client-facing investment work for ownership of the company’s budget, forecast and variance story. A business administration or finance degree points most directly toward it. It suits someone who wants to stay close to one organization rather than many.
Daily Responsibilities
Day-to-day work for a financial analyst typically involves analyzing financial statements, building financial models to forecast performance, tracking cash flow and preparing presentations for management or clients. Strong financial analysis skills are central to all of these tasks, and most analysts spend significant time working in spreadsheet software and financial data platforms.
Financial Analyst vs. FP&A Analyst
A financial analyst often works outside the company whose numbers they study, for a bank, fund or brokerage. That work centers on evaluating securities, credit risk or investment opportunities. An FP&A analyst does related work from inside one company, building its budget and forecast.
| Factor | Financial Analyst | FP&A Analyst |
|---|---|---|
| Focus | Evaluates investments, securities or credit risk, often for clients outside the company | Builds the forecast and budget for the company they work for |
| Typical education | Bachelor’s degree in finance or a related field such as business (BLS) | Bachelor’s degree in accounting, finance, economics or business (AFP) |
Both roles rely on financial modeling, data interpretation and clear reporting. They point in different directions, outward toward markets and clients or inward toward one company’s own plan.
The Association for Financial Professionals (AFP) offers the Certified Corporate FP&A Professional (FPAC) credential. AFP lists budgeting, forecasting and financial modeling among core FP&A job tasks. It names accounting, finance, economics and business as qualifying bachelor’s fields.
What Education Do You Need to Become a Financial Analyst?
For most entry-level financial analyst roles, a bachelor’s degree is the minimum educational requirement. BLS notes that financial analysts typically need a bachelor’s degree in finance or a related field such as business.
The National Center for Education Statistics (NCES) reports that business led all bachelor’s fields in 2021-22. Business accounted for 375,400 degrees, or 19% of bachelor’s degrees conferred. Common degree programs include finance, accounting, economics and business administration. A business administration degree builds a broad foundation in financial accounting, quantitative analysis and organizational decision-making, knowledge that directly aligns with what employers expect from new financial analyst hires. Some employers, particularly at large investment banks or asset management firms, prefer candidates with a master’s degree or MBA, but a bachelor’s degree is the standard entry point for the field.
Online degree programs have made it more accessible for working adults to earn the qualifications needed to transition into financial analysis roles. Completing an online BSBA degree, for example, allows you to build financial modeling, data analysis and business communication skills on a flexible schedule while continuing to work.
The online BSBA core includes Introduction to Financial Accounting and Business Finance. You can choose finance electives that cover investment analysis and financial institutions. Those electives do not appear as a concentration on your transcript.
Beyond the initial degree, some financial analyst positions, particularly those involving the sale of financial products, require Financial Industry Regulatory Authority (FINRA) licensing or professional certifications. You typically earn these after entering the field rather than before.
What Skills Do Financial Analysts Need?
Financial analysts draw on a mix of technical and interpersonal abilities. Building both types of skills, ideally through a combination of coursework and real-world experience, strengthens your readiness for entry-level roles and career growth over time.
Technical Skills
On the technical side, employers look for proficiency in financial modeling, data analysis and tools like Excel and business intelligence software. Familiarity with financial statements, budgeting processes and valuation methods is also expected. As more firms incorporate data-driven decision-making into their operations, comfort with quantitative analysis and financial data platforms has become increasingly important.
BLS cites computer and math skills as important qualities for financial analysts. Analysts use software and financial modeling to evaluate data, measure risk and forecast growth.
Deloitte surveyed more than 1,400 CFOs and finance leaders for its Finance Trends 2027 report. Among their top priorities, 43% named embedding artificial intelligence (AI) and advanced technology to automate operations. For new analysts, that adds weight to data and technology skills.
Soft Skills
For financial analysts, the interpersonal side of the role is just as important as the technical side. Strong analytical skills, clear written and verbal communication and the ability to translate complex financial data into straightforward recommendations are central to the job. Analysts regularly present findings to management, collaborate with colleagues across departments and explain investment rationale to clients, all of which demand strong interpersonal and communication skills alongside technical expertise.
BLS also lists analytical, communication and decision-making skills, plus attention to detail. Analysts share their recommendations through written reports and presentations.
How Much Do Financial Analysts Make?
Financial analyst salary figures vary by experience level, industry and location. According to BLS, the median annual wage for financial and investment analysts was $102,740 in May 2025. BLS projects overall employment of financial analysts will grow 7% from 2025 to 2035, much faster than the average for all occupations.
BLS notes that experienced analysts may advance to portfolio or fund manager roles. Financial managers, a common next step for analysts, earned a median annual wage of $166,570 in May 2025, according to BLS.
The job outlook for financial analysts is also supported by the breadth of industries that hire them. Banks, insurance companies, corporate finance departments and government agencies all employ analysts. A strong degree and relevant skills help candidates compete for entry-level analyst roles. Earnings vary by employer, location and experience; the degree does not guarantee a position or salary.
How Can You Start Your Financial Analyst Career?
Breaking into financial analysis follows a relatively consistent path, regardless of which sector you want to work in. Here are the key steps most analysts follow:
- Earn a relevant bachelor’s degree: A degree in business administration, finance, accounting or economics gives you the financial analysis foundation employers expect. Focus on coursework in financial modeling, quantitative methods and data interpretation.
- Build work experience: Internships and entry-level positions in finance, accounting or business analysis are the most reliable ways to gain practical work experience before applying for analyst roles. Many entry-level analysts begin in accounting or junior analyst positions before moving into more specialized work.
- Pursue certifications: The Chartered Financial Analyst program at CFA Institute is one of the most recognized credentials in the field. Completing all three levels, plus 4,000 hours of qualifying work experience, typically takes three to four years, and top financial institutions worldwide recognize CFA holders. For analysts who sell financial products, FINRA administers the qualifying exams required for registration in the securities industry.
- Apply for entry-level roles: Look for junior financial analyst, financial analyst I or business analyst positions as your starting point. Build from there as you develop your CFA certification and professional network.
Your first role can also shape your career direction. Investment-focused analysts work outward toward markets and clients. Corporate finance and FP&A analysts work inward on one company’s budget and forecast.
Explore A-State’s online BSBA program to build the finance, accounting and analytics skills employers expect from new financial analysts.
Next step
If you want to move from analyst work into corporate finance leadership, A-State offers a graduate path. Explore A-State’s Online MBA in Financial Planning and Analysis to see how it builds on a bachelor’s degree.
See Building a Career in FP&A: From Analyst to Director for the full timeline. What Does FP&A Mean, and What Does an FP&A Professional Do? gives a plain definition.
About Arkansas State University’s Online BSBA
A-State’s online BSBA prepares students for careers across business, including finance, operations, marketing and management. The program is 100% online and AACSB-accredited, so working adults can build credentials without leaving their jobs. Core coursework covers financial accounting, managerial accounting, business finance, business statistics, business analytics and strategic management. Courses run 7 weeks in fall and spring and 5 weeks in summer, with six starts a year.
Tuition is $302 per credit, with all fees included, and the rate applies to all U.S. residents. Students can transfer up to 90 of the 120 required credit hours, which can shorten the degree. Electives let students explore areas such as business law, finance, economics, marketing analytics and real estate. This reflects published program details as of October 2026 and is subject to change; confirm current tuition, credit hours and admission requirements directly with A-State.