What does a Financial Planning Analyst do?
Published 4 min read
A financial planning analyst is responsible for creating and maintaining financial models to support the decision-making process of an organization. They develop forecasting models to predict future revenue, expenses, and cash flow. Financial planning analysts also prepare budgets and track actual results against budget targets. In addition, they may conduct sensitivity analyses to assess the impact of different scenarios on the organization's financial health.
Financial Planning Analyst job duties include:
- Conducting financial analysis to support decision making for assigned business unit(s)
- Preparing presentations to communicate findings to management
- Developing and maintaining financial models for forecasting, trend analysis, and business planning
- Conducting ad hoc analysis as requested by management
- Assisting in the development and maintenance of departmental budget
- Supporting the month-end close process by preparing journal entries and account reconciliations
- Analyzing variances to budget and forecast and providing explanations to management
- Assisting with the preparation of SEC filings, including 10-Qs and 10-Ks
- Supporting special projects as needed, such as mergers & acquisitions
Financial Planning Analyst Job Requirements
A financial planning analyst typically needs at least a bachelor's degree in finance, accounting, economics, or a related field. Many employers also prefer candidates who have earned professional certification, such as the Certified Financial Planner (CFP) designation. In addition to formal education and training, financial planning analysts must have strong analytical, research, and communication skills. They must be able to work independently and be detail-oriented. Financial planning analysts typically have at least a few years of experience working in the financial industry before being promoted to this role.
Financial Planning Analyst Skills
- Analytical skills
- Profit and loss analysis
- Financial analysis
- Budgeting
- Forecasting
- Variance analysis
- Financial modeling
- Business analysis
- Strategic planning
- Financial planning
- Risk management
- Asset management
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How to become a Financial Planning Analyst
A financial planning analyst is a professional who helps individuals and organizations plan for their financial future. Financial planning analysts typically have a bachelor's degree in finance, accounting, economics, or a related field. Many financial planning analysts also have a master's degree in business administration (MBA) or a Certified Financial Planner (CFP) designation.
The job of a financial planning analyst is to help clients develop long-term financial plans. Financial planning analysts work with clients to assess their current financial situation, set goals, and develop strategies to achieve those goals. Financial planning analysts also help clients monitor their progress and make adjustments to their plans as needed.
Becoming a financial planning analyst requires both formal education and practical experience. Individuals interested in this career should consider pursuing a bachelor's degree in finance, accounting, economics, or a related field. Many financial planning analysts also have an MBA or CFP designation. In addition to formal education, individuals interested in becoming a financial planning analyst should also seek out opportunities to gain practical experience working with clients on their finances.
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