How to Become a Financial AnalystEducation Careers Tips

How to Become a Financial Analyst

12-06-2025University Canada West
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If you are considering a career in finance, becoming a financial analyst can be a highly rewarding path. Financial analysts play key roles in shaping investment strategies, managing portfolios and guiding businesses in financial planning. They work with data, market trends and financial models to help organizations and clients make informed decisions on where and how to invest.

In Canada, financial analysts can benefit from various certifications, such as Chartered Financial Analyst and Certified Financial Planner, to enhance their qualifications and expertise.

What Does a Financial Analyst Do?

Financial analysts are responsible for collecting and analyzing financial data to provide advice on investments, financing and other financial matters for their company or clients. Their work can involve evaluating areas such as takeover bids, private placements, mergers or acquisitions. Financial analysts are employed by a variety of organizations in both the public and private sectors, including banks, brokerage houses, insurance companies, investment firms, manufacturing companies, utility companies and underwriting firms.

In their daily duties, financial analysts evaluate financial risks, prepare forecasts and write reports and recommendations related to capital management. They also plan both short-term and long-term cash flows, assess financial performance, and evaluate investment projects. Financial analysts may advise on and participate in the financial aspects of contracts and tenders, follow up on financing projects with financial backers, and develop tools for managing and evaluating financial records. They also prepare regular risk profiles for debt records and assist in preparing operating and investment budgets.

What is a Certified Financial Analyst?

A certified financial analyst is a generic or informal term used to describe financial analysts who have completed certifications or credentials in finance. A Chartered Financial Analyst or CFA is a formal designation awarded by the CFA Institute. The CFA designation is internationally recognized and highly respected in the finance industry, especially in investment management, portfolio management and financial analysis roles. Earning the CFA involves passing a series of three challenging exams, gaining professional experience, and adhering to a strict code of ethics. 

There are other certifications that can be helpful depending on what areas a financial analyst would want to pursue. The Certified Financial Planner (CFP) designation, offered by FP Canada, is ideal for professionals focused on personal financial planning, covering topics like retirement, tax strategies, insurance, and estate planning. The Chartered Professional Accountant (CPA) designation is Canada’s primary accounting credential, essential for those seeking expertise in accounting, financial statements, and corporate finance. Other valuable certifications include the Financial Risk Manager (FRM) for risk analysis, the Canadian Securities Course (CSC) for foundational financial services knowledge, the Chartered Investment Manager (CIM) for investment management, and the Advanced Financial Modeler (AFM) for financial modeling skills. These certifications can help financial analysts specialize in fields such as investment management, financial planning, accounting or risk management.

Educational Requirements

Candidates typically need a bachelor’s degree in fields such as commerce, business administration or economics. Many entry-level positions are accessible with an undergraduate degree, though on-the-job training and industry-specific courses are often required to develop practical skills. Additionally, some employers prefer candidates with a Master of Business Administration (MBA) with a concentration in finance or a master’s degree in finance, which provides deeper knowledge and can open doors to more advanced roles. As mentioned above, the Chartered Financial Analyst, or CFA, designation is considered an asset in some areas and may be required by some employers.

Skills Required for Financial Analysts

Financial analysts rely on a mix of technical expertise and soft skills to excel in their field. Analytical skills are essential, allowing them to examine large data sets, identify trends and extract valuable insights for decision-making. Strong financial modeling abilities are also a must, enabling analysts to accurately forecast revenues, expenses and other key financial metrics. Mastery of tools such as Excel is often vital in this process.

Attention to detail is crucial, as even minor errors can significantly affect reports and lead to flawed data analysis while creating financial models. Clear communication skills are important, as analysts frequently need to present complex data in reports and presentations that are easily understood by stakeholders. Problem-solving skills also play a significant role, as analysts interpret data creatively to offer strategies that enhance financial health or investment outcomes.

Proficiency with financial software supports their data analysis, while a solid understanding of economic principles and market trends helps them provide accurate forecasts and recommendations.

Key responsibilities

The scope of financial analyst jobs is broad and includes tasks such as evaluating financial performance, developing investment strategies or portfolio management. They work in various settings, from small firms to large financial institutions and government agencies to small nonprofit organizations. Their insights are valuable for strategic planning and achieving financial stability for their clients or employers and risk assessment. Financial analysts may specialize in different areas, such as corporate finance and investment banking.

How UCW Helps You Become a Financial Analyst

University Canada West offers a Bachelor of Commerce and Master of Business Administration. Students benefit from practical training and access to resources that prepare them for career challenges. UCW’s programs are designed to help students build a strong base, setting them on the path to certification and career success.

Conclusion

Becoming a financial analyst requires dedication to education and skill-building. With a solid academic foundation and certifications, financial analysts can unlock a range of career opportunities in sectors from banking to corporate finance.

Frequently Asked Questions (FAQs)

A CFA (Chartered Financial Analyst) designation is not required to start your career as a financial analyst, but it can give you a strong edge. Many entry-level positions are open to candidates with a bachelor’s degree in business, finance or economics. However, the CFA can help you advance into higher-level roles or specialize in investment analysis. It's especially valued by employers in asset management or banking.

You can become a financial analyst in as little as four years, which is the typical time to complete a bachelor's degree. Some students gain internships or part-time roles while studying, which helps them land a job faster after graduation. Gaining certifications like the CFA or gaining experience in finance-related roles can further speed up your career growth.

Key skills include strong analytical thinking, attention to detail and proficiency in financial modelling. Communication skills are also essential for presenting data-driven insights clearly. A good understanding of financial statements, markets and economic trends is critical.

The job market for financial analysts is competitive, especially in major cities and at top firms. Having a strong academic background, work experience and certifications can help you stand out. Demand is steady, but employers often look for candidates with both technical and soft skills. Networking and continuous learning are key to staying ahead.

In Canada, entry-level financial analysts typically earn between $50,000 and $70,000 annually. With experience, salaries can rise to $80,000–$100,000 or more. Analysts working in major financial centers like Toronto or Vancouver may earn higher salaries. Bonuses and incentives are also common in the industry.

Yes, the CFA designation is highly respected in Canada and can significantly boost your career in finance. It opens doors to roles in investment banking, portfolio management and research analysis. While it’s challenging and takes time, many Canadian employers value the depth of knowledge and commitment it represents. If you aim for long-term growth in finance, it’s a solid investment.