Last updated: 14 October 2026, with BLS data read the same day. Written by Josh Hutcheson, OnlineCourseing editor. See our review methodology.
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QUICK ANSWER
Path: bachelor’s degree (finance, accounting, economics or business) → Excel and modeling skills → at least one internship → an entry-level or rotational analyst role → optional CFA, FMVA or FINRA licenses as your track requires.
- Median pay: $102,740 for financial and investment analysts (BLS, May 2025).
- Outlook: +7% from 2025 to 2035, much faster than average; about 29,500 openings a year.
- Time: about four years through a degree; faster for graduates switching in.
Fastest practical skill-builder: CFI’s FMVA, 100-120 hours of Excel modeling and valuation.
“Financial analyst” is one of the most common entry points into finance, and also one of the vaguest job titles. It covers the FP&A analyst building next year’s budget at a manufacturer, the equity research associate modeling a bank’s earnings, and the credit analyst deciding whether a borrower can repay. This guide explains what the job involves, the steps to get hired, what it pays, and how the career develops, using U.S. Bureau of Labor Statistics data read on 14 October 2026.
A note on numbers: the BLS reports two medians that are easy to mix up. Financial analysts overall (financial and investment analysts plus financial risk specialists) earned a median of $103,570 in May 2025; financial and investment analysts alone, the group most job titles fall under, earned $102,740. We say which one we mean each time.
What Does a Financial Analyst Do?
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According to the BLS Occupational Outlook Handbook, financial analysts research and evaluate financial data, forecast trends and prepare reports with recommendations for businesses and investors. Typical duties include:
- Evaluating current and historical financial data
- Studying economic and business trends
- Examining a company’s financial statements to judge its value and growth prospects
- Researching and recommending investments
- Meeting company officials to understand a business’s prospects
- Writing reports and presentations that explain the numbers
Day to day, most of that work happens in Excel and PowerPoint. In a corporate role it means monthly reporting, variance analysis (why did costs come in above budget?), forecasts and the annual plan. In an investment role it means building models of companies, writing research and defending a view on a security.
Types of financial analysts
| Type | What the job focuses on | Common credential path |
|---|---|---|
| Corporate / FP&A analyst | Budgets, forecasts, variance analysis and planning for one company | Degree; FMVA, CFI FPAP or an FP&A certification; later an MBA or CPA |
| Investment banking analyst | Valuation, merger and financing models, pitch books for deals | Degree from a recruited school; modeling training (WSP, BIWS, CFI); FINRA licenses after hire |
| Equity research analyst | Earnings models, price targets and ratings on a group of stocks | Degree; CFA program; FINRA licenses after hire |
| Buy-side investment analyst | Researching investments for a fund or asset manager | Degree; CFA charter is common |
| Credit analyst | Assessing borrowers’ ability to repay for banks and lenders | Degree; credit training programs at banks |
| Financial risk specialist | Measuring credit and market risk, monitoring regulatory limits | Degree with quantitative skills; FRM |
The BLS splits the occupation in two: financial and investment analysts, who held about 377,200 jobs in 2025, and financial risk specialists, who held about 66,000. If you are drawn to banking, our guide to getting into investment banking covers that recruiting track in detail.
A Typical Month as a Financial Analyst
The rhythm of the job depends on the track. In corporate FP&A, the month is built around the accounting close:
| When | Corporate FP&A analyst | Equity research associate |
|---|---|---|
| First week | Pull actuals after the close; explain variances to budget for each department | Update models for new company and industry data |
| Second week | Write the monthly business review; meet budget owners to discuss what changed | Publish notes on news, guidance changes or industry data |
| Third week | Update the rolling forecast; run scenarios for decisions such as hiring or pricing | Speak with company management, suppliers and investors |
| Fourth week | Ad hoc analysis for leadership; prepare for the next close | Prepare for earnings: previews, model checks, questions for management |
| Seasonal peaks | Annual budget and long-range plan (often autumn) | Earnings season, four times a year |
A Reddit commenter who works in the field summed up the corporate version as lots of weekly, monthly and quarterly reporting plus ad hoc analysis. That is accurate for the first year or two; the work becomes more about judgment and less about producing reports as you take ownership of a forecast or a business unit.
How to Become a Financial Analyst: 7 Steps
1. Earn a bachelor’s degree
The BLS says financial analysts typically need a bachelor’s degree in finance or a related field such as business, and some employers prefer a master’s. Accounting, economics, statistics, mathematics and engineering degrees also feed into the role. Accounting is the most transferable: every analyst track assumes you can read and connect the three financial statements.
2. Learn the core skills: accounting, Excel and modeling
Employers test these in interviews, often with a case or a modeling exercise. You need to build a three-statement model, run a discounted cash flow (DCF) valuation and explain what drives the numbers. If your degree did not teach this, a structured course fills the gap; see our best financial modeling courses and best accounting courses.
3. Get at least one internship
The BLS notes that students often benefit from internships, and the most upvoted answer in an r/FinancialCareers thread on the question says the same in plainer words: a degree, usually at least one internship, and evidence that you think critically are what a typical corporate analyst offer requires. Internships rarely require experience, which makes them the easiest way to get the first line on your resume.
4. Target entry-level and rotational roles
Look for titles such as financial analyst I, junior FP&A analyst and credit analyst trainee, and for financial leadership development programs (FLDPs) and analyst rotation programs at large companies, which hire graduates and move them through several finance teams. Many postings ask for two to five years of experience; graduates on Reddit report being hired into those roles anyway after sending many applications.
5. Add licenses if your track needs them
The BLS identifies the Financial Industry Regulatory Authority (FINRA) as the main licensing body for the securities industry. Some analyst positions require licenses, and because most require employer sponsorship, companies do not expect candidates to hold them before starting. Corporate FP&A roles generally do not need them.
6. Choose a certification that fits the job you want
Certification is not required for most analyst jobs, but the BLS notes it can enhance professional standing. Pick by track: the CFA program for investment roles (see our best CFA prep courses), a modeling certification such as the FMVA for corporate finance and interview preparation, the FRM for risk, and the CPA or CMA if you come from accounting. The comparison is further down this page.
7. Build toward the next step
Advancement comes from experience and scope: owning a forecast, a business unit or a coverage list. The BLS notes that a master’s in finance or an MBA can improve an analyst’s chance of moving into portfolio or fund management. In corporate finance, the usual ladder runs from analyst to senior analyst, finance manager, director and beyond (see the career path section).
How to Become a Financial Analyst With No Experience
Most analyst postings list experience requirements that graduates cannot meet. People who have broken in describe the same tactics:
- Apply widely. One commenter on r/FinancialCareers recommended sending 200 or more applications, and said his own first analyst job had asked for two to five years of experience when all he had was a three-month temp accounting job.
- Use rotational programs. FLDPs and analyst rotation programs are designed for graduates and let you try FP&A, treasury and accounting before you specialize.
- Start next door. Staff accountant, accounts payable or receivable, credit analyst and finance operations roles all lead into analysis once you are inside a company.
- Show the skill directly. Bring a model you built (for example, a three-statement model of a public company) and be ready to walk through it. One commenter in the same thread listed advanced Excel, Power BI, SQL, Tableau, Python and financial modeling as the skills worth putting on a junior resume.
- Prepare for assessments. Many large employers screen with cognitive or Excel tests before interviews.
If you are switching careers with a degree in another field, a structured program is the quickest way to close the gap. CFI’s free Careers in Finance course (about 90 minutes) is a no-cost way to compare the tracks before you pay for anything.
The Core Analysis Techniques You Will Use
Whatever the track, analysts lean on a small set of techniques. If you can do these in Excel and explain the result in a sentence, you can do most entry-level work:
| Technique | What it answers | Where it shows up |
|---|---|---|
| Horizontal (trend) analysis | How did each line change from period to period? | Monthly reporting, earnings reviews |
| Vertical (common-size) analysis | What share of revenue does each cost take? | Margin analysis, peer comparisons |
| Ratio analysis | How liquid, profitable and leveraged is the business? | Credit decisions, equity research |
| Variance analysis | Why did results differ from budget or forecast? | FP&A, every month-end |
| Three-statement modeling | How do assumptions flow through income, balance sheet and cash flow? | Forecasts, deal models |
| Discounted cash flow (DCF) | What is the business worth based on future cash flows? | Valuation, investment research |
| Comparable companies and precedent transactions | What are similar companies or deals valued at? | Banking, research, corporate development |
| Scenario and sensitivity analysis | What happens to the answer if key assumptions change? | Planning, investment committees |
The three financial statements sit under all of them. The income statement shows profit over a period, the balance sheet shows what a company owns and owes at a point in time (assets equal liabilities plus equity), and the cash flow statement connects the two by showing the cash that actually came in and went out. The users of the analysis vary by job: investors and lenders, management, suppliers judging whether they will be paid, and regulators.
What a Financial Analyst Interview Tests
Expect three kinds of questions, in roughly this order:
- Accounting: walk me through the three financial statements; how does a $10 increase in depreciation affect each one; what is working capital and why does it matter for cash?
- Valuation and modeling: walk me through a DCF; what is WACC and how do you calculate it; when would you use comparable companies instead of a DCF? Many employers add an Excel test or a short case, such as building a simple forecast or analyzing a variance.
- Fit and judgment: why this company and this team; tell me about a time you found an error in data; how would you explain a missed forecast to a manager who is not in finance?
Investment banking and private equity interviews go deeper on modeling and deal mechanics; see our investment banking interview questions for that version. For corporate roles, being able to talk through a model you built yourself is often the strongest answer you can give.
Skills Financial Analysts Need
The BLS lists six qualities for the job: analytical, communication, computer, decision-making, detail orientation and math skills. In practice, employers ask for these:
| Skill | What it looks like at work |
|---|---|
| Accounting | Reading and linking the income statement, balance sheet and cash flow statement |
| Excel and financial modeling | Building forecasts, three-statement models, DCF valuations and sensitivity tables |
| Communication | Turning a variance or a valuation into a short, clear story for managers |
| Data tools | Power BI or Tableau dashboards; SQL to pull data; Python in more quantitative roles |
| Business judgment | Knowing which assumptions matter and challenging numbers that look wrong |
| Market and data platforms | Bloomberg, Capital IQ or FactSet in investment roles; ERP systems such as SAP or Oracle in corporate roles |
For market literacy, the inexpensive Bloomberg Market Concepts certificate is a common first credential for students.
Education: Which Degree, and Do You Need a Master’s?
A bachelor’s degree is the standard requirement. Finance and accounting are the most direct preparation; economics, business, statistics and engineering graduates are hired regularly if they can show modeling skills. A master’s degree is rarely required to start, though the BLS notes some employers prefer one, and an MBA or master’s in finance matters more later for moves into portfolio management or senior corporate finance roles.
Certifications for Financial Analysts
| Credential | Best for | What it takes |
|---|---|---|
| CFA (CFA Institute) | Investment analysis, equity research, portfolio management | Three proctored exams, about 300 study hours each; $3,520-$4,570 in exam fees for all three; 4,000 hours of qualifying work for the charter |
| FMVA (CFI) | Corporate finance, FP&A, interview preparation | 100-120 hours online; 70% to pass the final; $323.05–$465.85 for a year of CFI at current prices |
| FPAP (CFI) | FP&A analysts | Online CFI certification included in the same membership |
| FRM (GARP) | Risk management | Two exams on market, credit and operational risk |
| CPA | Accounting-heavy analyst and controller roles | State-licensed; exams plus education and experience requirements |
| CMA (IMA) | Management accounting and corporate finance | Two exams plus experience |
| FINRA licenses | Roles in securities firms | Usually sponsored by the employer after hiring |
CFA figures are from CFA Institute as compiled in our FMVA vs CFA comparison; FMVA figures from CFI’s program and pricing pages, 14 October 2026. For the others, see our guides to the FRM, CMA, CPA vs CFA and FP&A certifications, or our ranking of the best finance certifications.
Does certification help you get the job? It depends on the track. The CFA charter is a recognized hiring signal in investment management. Modeling certifications like the FMVA are better thought of as training: candidates report that they improve performance in technical interviews and on the job, but hiring managers rarely screen for them. Our FMVA review, written by a graduate, covers that trade-off.
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See the CFI sale →Financial Analyst Salary in 2026
The BLS reported these May 2025 medians (half earned more, half less):
| Occupation | Median, May 2025 | Lowest 10% | Highest 10% |
|---|---|---|---|
| Financial and investment analysts | $102,740 | under $63,720 | over $180,860 |
| Financial risk specialists | $117,330 | under $64,820 | over $196,110 |
| Financial analysts (both groups) | $103,570 | ||
| All occupations | $50,980 |
Pay by industry
| Industry | Financial and investment analysts, median |
|---|---|
| Securities, commodity contracts and other financial investments | $124,370 |
| Management of companies and enterprises | $101,760 |
| Professional, scientific and technical services | $101,540 |
| Credit intermediation (banks and lenders) | $100,120 |
| Insurance carriers | $95,830 |
Source: BLS, Pay tab, read 14 October 2026. Entry-level pay sits nearer the lower decile than the median, and the biggest jumps come from moving into investment firms or up the management ladder. For more detail by city and level, see our financial analyst salary guide; banking pay, including bonuses, is covered in our investment banking salary guide.
Job Outlook for Financial Analysts
The BLS projects employment of financial analysts to grow 7% from 2025 to 2035, much faster than the 3% average for all occupations, from 443,100 jobs to about 475,100. It expects about 29,500 openings a year, most of them to replace people who change occupations or retire.
Its reasons: demand rises with economic activity, as new and expanding businesses need investment analysis; investing is increasingly global, which creates demand for analysts who cover particular countries or regions; and companies have growing volumes of data to analyze. An earlier version of this page claimed “double-digit” demand growth, attributed to Forbes. The BLS projection is 7%, and we have corrected it.
Where Financial Analysts Work
| Largest employers of financial and investment analysts (2025) | Share of jobs |
|---|---|
| Securities, commodity contracts and other financial investments | 24% |
| Professional, scientific and technical services | 14% |
| Credit intermediation and related activities | 12% |
| Management of companies and enterprises | 11% |
| Insurance carriers and related activities | 6% |
Financial risk specialists are concentrated more heavily in banks and lenders (35%). The BLS describes the work as office-based, with occasional travel to companies or clients; most analysts work full time and some work more than 40 hours a week.
Financial Analyst Career Path
There is no single ladder, but two are common.
Corporate finance (FP&A)
Financial analyst → senior financial analyst → finance manager → senior manager → director → vice president of finance → CFO. Commenters on r/FPandA describe spending a few years at each early rung, and some plan to start at a large company and move to a smaller one for a bigger title later. Financial managers, the next BLS occupation up, earned a median of $166,570 in May 2025.
Investment track
Analyst → associate → vice president in banking or research; or analyst → portfolio manager on the buy side. The BLS notes that experienced analysts may become portfolio or fund managers, and that a master’s in finance or an MBA can help.
Moves between tracks are common early on: banking analysts often move to private equity or corporate development, and corporate analysts can move into investor relations or treasury.
Is Financial Analyst a Good Career?
| Pros | Cons |
|---|---|
| Median pay about double the all-occupation median | Entry roles are competitive and often ask for experience |
| Growth projected at 7%, much faster than average | Long hours in banking and some investment roles; month-end and budget seasons in corporate roles |
| Skills transfer across industries and into management | Early work can be repetitive reporting |
| Clear paths into management, investing or strategy | Some tracks expect long certifications such as the CFA |
An earlier version of this page described the job as standard business hours with strong job security. That holds for some corporate roles, but the BLS says some analysts work more than 40 hours a week, and investment banking hours are far longer. We have taken out the general claim.
Financial Analyst vs Business Analyst vs Accountant
| Role | Focus | Median pay, May 2025 (BLS) |
|---|---|---|
| Financial and investment analyst | Forecasts, valuation and investment decisions | $102,740 |
| Management analyst (incl. business analysts) | Processes, systems and efficiency | $101,860 |
| Accountant and auditor | Recording, reporting and auditing financial records | $83,680 |
Accounting is the most common stepping stone into financial analysis: the skills overlap, and staff accountants can move into FP&A once they show they can forecast as well as report.
Becoming a Financial Analyst Outside the US
The skills are the same everywhere; the credentials and data differ. The CFA program is global and is often weighted more heavily outside the US. In Canada and the UK, accounting designations (CPA in Canada; ACCA or CIMA in the UK) are common routes into corporate finance, and the FMVA, which is online, is taken in many countries; CFI offers regional pricing in some, such as India. Use your country’s labor statistics for pay rather than the U.S. figures on this page.
Where to Start
If you are still deciding whether this is the right field, start with CFI’s free Careers in Finance course and a solid accounting course. If you are committed and need job-ready modeling skills, the FMVA is the most direct structured option for corporate finance; a year of CFI Self-Study, which includes it, costs $323.05 a year (35% off the $497 list price during the current sale, no code needed). Our CFI review covers the rest of CFI’s catalog. For banking, compare it with the programs in our CFI vs Wall Street Prep guide. And if you want free material first, see our list of free financial analyst courses.
Frequently Asked Questions
How do you become a financial analyst?
Earn a bachelor’s degree in finance, accounting, economics or business, build Excel and financial modeling skills, get at least one internship or analytical job, then apply for analyst roles in corporate finance (FP&A), banking or investment firms. Certifications such as the CFA or CFI’s FMVA help but are not required for most entry-level jobs.
How long does it take to become a financial analyst?
Usually about four years: the length of a bachelor’s degree, with internships during it. Career changers with a degree can move in faster by adding modeling skills (CFI estimates 100-120 hours for the FMVA) and targeting entry-level or rotational roles.
How much do financial analysts make?
The BLS reported a May 2025 median of $102,740 for financial and investment analysts and $103,570 for financial analysts overall. The lowest 10% of financial and investment analysts earned under $63,720 and the top 10% over $180,860.
Is financial analyst a good career?
For people who like numbers and explaining them, yes. The BLS projects 7% employment growth from 2025 to 2035, much faster than the 3% average, with about 29,500 openings a year, and the median pay is roughly double the all-occupation median. Hours run longer than 40 a week in some roles, especially investment banking.
Do you need a certification to become a financial analyst?
No. The BLS says most financial analysts need a bachelor’s degree, and certification is not always required. Some roles need FINRA licenses, which employers usually sponsor after hiring. The CFA charter is valued in investment roles; practical courses like the FMVA mainly help you do the work and pass technical interviews.
How do I become a financial analyst with no experience?
Apply broadly to entry-level analyst, financial leadership development (FLDP) and rotational programs, which hire graduates without experience. Build a modeling project you can discuss in interviews, and consider adjacent first jobs such as staff accountant, credit analyst or finance operations roles that lead into analysis.
Can financial analysts work remotely?
Some can. Many corporate finance teams offer hybrid schedules, but fully remote analyst roles are less common than in-office or hybrid ones, and junior analysts often benefit from sitting with their team. The BLS describes the work as office-based, with some travel to visit companies or clients.
What is the difference between a financial analyst and a business analyst?
Financial analysts evaluate money: budgets, forecasts, investments and valuations. Business analysts improve processes and systems, translating business needs into requirements. The BLS groups business analysts with management analysts, whose May 2025 median was $101,860.
Related: Best finance certifications · FMVA review · Financial analyst salaries · Best credit analyst certifications · Best equity research courses