Guide To A Financial Reporting Analyst Career Path

In Malaysia, the finance industry remains to be a place of opportunity for those interested in helping individuals or businesses navigate their finances and investments. If you are looking into joining the finance industry, this might be the right time for you to consider a financial reporting analyst career path.

Whether you are a fresh graduate or exploring a career change, you may have questions about becoming a successful financial reporting analyst. What are the education and licencing requirements? Is the working environment as intense as those in television? How do you obtain and keep business partners and clients?

In this guide, Jobstreet will help you break down the ins and outs of why and how to prepare yourself for an exciting career path as a financial reporting analyst.

What does a financial reporting analyst do?

Financial reporting analysts, also known as financial analysts, are professionals who guide businesses and individuals in identifying investment opportunities and evaluating outcomes of business decisions to attain a profit. They assess the performance of investments, stocks, and bonds of a business through data analytics, customer behaviour, and economic conditions.

Financial analysts often work for banks and other financial organisations such as insurance agencies or wealth management corporations. The day-to-day tasks of financial analysts are broad, ranging from collecting data and monitoring the market to identifying trends and making recommendations.

Responsibilities of a financial reporting analyst

Financial analysts responsibilities vary depending on the organisation they work for, the industry they are in, and their seniority level. A typical financial analyst's day might include the following responsibilities:

• Performing financial forecasts, reports, and operational metrics tracking
• Maintaining a database of the company's financial records and asset performance
• Identifying trends in economic performance and providing recommendations for improvement
• Coordinating with other members of the finance or accounting team to review financial information
• Developing initiatives and policies that may improve business growth
• Consulting with the stakeholders and management team to develop long-term strategies

Types of financial analysts

There are two main types of financial analysts: the sell-side analyst and the buy-side analyst. 

The majority of financial analysts work on the buy-side. They deal with helping businesses make sound decisions on how to spend money. They also provide investment advice. 

Meanwhile, sell-side analysts evaluate and compare the quality of products or services of a company. They make buy and sell recommendations, steering them in the ride direction to avoid risks. 

Many analysts also specialise even further within a specific sector or industry. An analyst may concentrate on marketing or technology, for example.

Salary Range

Financial analyst salaries vary based on experience, skills, and the industry they are working in. For fresh graduates or entry-level experience, they can expect at least RM 36,055 annually, inclusive of bonuses and overtime pay. 

With 1 to 4 years of experience, a financial analyst can earn a total compensation of RM 48,373 on average. Meanwhile, an experienced financial analyst with 5 or more years of seniority can receive a salary of RM 82,541 annually.

What is the career path of a financial reporting analyst?

Junior Level (1-3 years experience)

• Financial Advisor
• Controller (Budget Analyst)
• Account Executive

Mid Level (4-8 years experience) 

• Portfolio Manager
• Fund Manager
• Internal Auditor

Senior-level (8 years or more) 

• Financial Manager
• Chief Financial Officer
• Managing General Agent

What requirements do you need to become a financial reporting analyst?

• Attention to detail

Handling numbers is a crucial task. Committing even the smallest mistakes can jeopardise a business. So, financial reporting analysts must be meticulous enough to spot numerical errors.

This said, attention to detail is not just limited to noticing numbers. This trait also applies to formatting and writing reports. Any error in gathering the data or analysing the trends can significantly change conclusions and affect business dealings.

• Organisational skills

Your ability to comb through large amounts of data and pick out what is relevant for forecasting and reporting is essential to the job. Financial analysts need to know how to organise information. This is the foundation of the reports and is shared with stakeholders.

• Verbal and written communication skills

In the complex world of finance, people with no financial background may not understand certain jargon. If you want to succeed as a financial reporting analyst, you must have the ability to translate reports in the simplest way possible.

• Interpersonal skills

Financial analysts also focus on building working relationships with clients and colleagues. You will be expected to effectively collaborate with a team. This requires understanding both verbal and nonverbal cues that occur during meetings or conversations.

• Leadership

Employers want candidates who can fill senior roles down the line and can take charge of workload independently. How you lead yourself through continuous learning or personal development is a mark of a promising candidate.

• Analytical and problem-solving skills

Your ability to recognise and solve a problem before it affects the business will help you carve your career path as a financial reporting analyst. Possessing this skill means that you can gauge and apply strategic planning to help a business make sound financial decisions.

• Financial literacy

Financial analysts must be able to correctly decipher financial information. You must have the ability to read financial reports and gain insights into the market. Additionally, being well-versed in financial jargon and processes unique to the financial field will help you flourish in the position.

• Tech savviness

Technical skills are becoming increasingly necessary for financial analysts. Many employers are looking at candidates who have strong proficiency in database software and spreadsheets. These tools help in analysing the data, comparing data, and making presentations to the clients.

• Research skills

Conducting research is one of the primary responsibilities of a financial analyst. You should know how to perform the research efficiently and effectively to find correct data for analysis. Being alert and resourceful enough to find solutions will help you succeed in this career path.

• Knowledge of Malaysian accounting procedures

Financial analysts need to understand the basic principles of Accounting. The Malaysian Accounting Standards Board has set a comprehensive Generally Accepted Accounting Principles (GAAP) in Malaysia. It varies from country to country and is mandated by the International Reporting Standards. You will need to know about standard accounting techniques to assess an individual or business's financial health.

Educational background

Getting the proper education is key to a financial analyst career path. Most employers will require you to have a bachelor's degree in Accounting, Business Administration, Finance or Economics. Some will require a Master's degree in any relevant field. A good educational background will help you leverage your career and negotiate your compensation.

Apart from requiring a traditional educational background, most employers prefer candidates who attach extra certifications to their resumes. A Certified Public Accounting (CPA) certificate or license may also be required, depending on the position you are applying for. But even if it is not a requirement, the certificate will give you a competitive edge in an already competitive market.

In Malaysia, licensing and certification requirements are established by the following agencies:

• CFA Society Malaysia
• Certified Financial Planner (CFP) from Financial Planning Association of Malaysia (FPAM)
• Registered Financial Planner (RFP) from Malaysia Financial Planning Council

In addition, finance professionals can also pursue post-graduate qualifications in other areas of business, such as Accounting and Tax. Some examples of such professional qualifications include:

• Association of Chartered Certified Accountants (ACCA)
• Chartered Tax Institute of Malaysia (CTIM)
• The Malaysian Institute of Certified Public Accountants

Opportunities for Continuous Education

Financial analysts have to stay on top of market trends, technological advancements, economic changes, and a wide range of other factors that affect their work. Failing to do so can lead to missed opportunities or errors in judgment, which can then lead to financial loss. Continuing your education can help boost your career opportunities and raise the integrity of the field as a whole.

Through Jobstreet’s partnership with FutureLearn, you can enrol in helpful online courses for free. Here are a few online courses you can explore:

• Financial Analysis for Business Performance: Planning, Budgeting, and Forecasting
• Finance Fundamentals: Financial Planning and Budgeting
• The Digital Economy: Finance for Business Growth
• Finance for Everyone: Smart Tools for Decision-Making
• Innovations in Investment Technology: Artificial Intelligence

How to write a financial reporting analyst resume?

Download the Financial Reporting Analyst resume template here

If you have a knack for analysing data and trends or enjoy a collaborative environment, then a career path as a financial analyst may be your calling. Take a leap of faith and start exploring #JobsThatMatter to you. Start by updating your Jobstreet profile and get the latest opportunities available.

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