The growth of any organization depends on its operations and the utilization of resources by different departments. Companies often hire experts who perform business analytics at different levels in all departments and contribute towards growth. Though these experts are highly supportive in ensuring business growth, you might need a financial expert for the budget-related aspects. Thus, knowing the difference between business analyst or financial analyst is significant. Moreover, you should know the responsibilities of these professionals and why you need both of them in your company.
Business Analyst vs Financial Analyst Comparison Table
A business Analyst is a professional who analyses different departments and operational units within a company. They identify the issues that restrict growth and build plans to overcome them and achieve target sales profit values. They make decisions on the basis of the information they fetch from the patterns and trends of the historical company data.
On the other hand, Financial Analysts focus on financial constraints or budget utilization. They typically stick to analyzing the financial data of an organization and frame investment-related decisions. They are responsible for maintaining financial spreadsheets and tracking all the transactions carried out in an organization.
Now you know everything about the roles and responsibilities of both analysts. Refer to the table below to understand the difference between financial analyst and a business analyst.
Business Analyst
| Financial Analyst
|
|---|
These experts identify areas in a business that need improvement and find solutions for the same.
| These experts work to ensure that the financial situation of their organization remains sorted.
|
They upgrade and automate the current systems.
| They ensure the financial systems and instruments are well-equipped with modern technology.
|
Ensures effective and fair resource allocation
| Plan activities and procedures to improve the company’s financial growth.
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Monitors the company's performance and contributes to project management.
| Explores, implements, and audits various financial strategies.
|
Fetch information from stakeholders and different data sources to generate valuable reports.
| Prepares financial spreadsheets and reports to track every financial transaction done in the company.
|
Does market research to keep up with the changing business trends
| Does market research to learn about new budget norms and how the company can use them.
|
These are the fundamental differences between the duties of a business analyst and a financial analyst. Both job roles are significant for an organization. Moreover, these are amongst the highest-paying jobs in the market. Professionals from relevant educational backgrounds enroll in Business Analyst certifications to improve their skills and grab the best opportunities. Let us dig deeper and understand each parameter in detail to understand the difference between financial and business analysis.
Business Analyst vs Financial Analyst
To decide which of these positions would be apt for you, you can use a fair comparison between business analyst v/s finance experts. Due to the lack of awareness, many experts transition from financial analyst to business analyst at a later stage of their careers. To avoid chaos and give you the right career direction, let us discuss the parameters on which they differ. It will give you better clarity and make decision-making utterly convenient.
Business Analyst v/s Financial Analyst: Skills
A business analyst should be good at presentation skills. These professionals come in direct contact with stakeholders, different department heads, and clients. So, their communication and interpersonal skills should be strong.
A financial analyst has to do the financial planning for the company. So, the skills that these professionals should possess are budgeting, resourcefulness, and financial literacy. These experts should be curious enough to perform financial investigations and discover the flaws in financial reports.
Business Analyst v/s Financial Analyst: Educational Requirements
Most companies prefer hiring professionals who have at least a bachelor degree in business management. If you have completed your master degree in this domain, you are definitely in for better job opportunities. Moreover, to stand out from the competition and increase your chances of getting an excellent salary, you should go for KnowledgeHut Business Analyst certifications.
A financial analyst should have a master's degree in finance or accounting. It is better if you specialize in accounting or finance. You can also enroll in a certification program relevant to the domain to multiply your chances of getting a better job with monetary perks.
Business Analyst v/s Financial Analyst: Focus Area
A business analyst focuses on business growth by improving or upgrading current company operations. They work to identify the issues in the current company operations and suggest new ways to eliminate them and support growth.
Financial analysts solely focus on the financial aspect of the business. They study the financial data of an organization to identify discrepancies in budgeting. Based on that, they plan strategies to ensure smoother financial flow.
Business Analyst v/s Financial Analyst: Salary
The financial analyst v/s business analyst salary in India and overseas is a crucial parameter based on which the professionals decide which job type is appropriate for them.
The Business Analyst average salary is around $89,168. You may start from around $65000. However, it can rise to $122000 or even more with time.
The financial analyst average salary in India is around $69000. You may start from around $46000. However, it can rise up to $10400 or even more with time.
Business Analyst v/s Financial Analyst: Growth Perspective
The growth expectations of a financial analyst or business analyst are high compared to many other job roles in any industry. However, the growth perspective of financial v/s business analyst varies from each other.
Business analysts have higher demand, and the salary package of these professionals is also high. Financial analysts also have promising career with excellent salaries, but their market demand is less than business analysts.
Business Analyst v/s Financial Analyst: Technical Understanding
A business analyst should be proficient in tools and techniques that make data analysis convenient. They should ideally be good at Excel, Tableau, Power BI, and all other software tools that are apt for this domain. Furthermore, they should be well-versed and comfortable using the tools required for excellent resource allocation.
A financial analyst should be proficient in Excel and related tools for effective report generation. It is fruitful for them to have hands-on experience in SAP, SQL, Tally, and more to earn professional success. Moreover, they should have a solid understanding of hedge funds, bonds, securities, and more.
Business Analyst v/s Financial Analyst: Certification Programs
A business analyst opts for certification programs that are based on business intelligence, database analysis, organizational behavior, and more. They do have financial management as a small part of the syllabus, but it is not elaborate enough to start working as a financial analyst.
The financial analyst certification programs focus solely on accounting work. They train the candidates in tools that make planning financial strategies easy and contribute to company’s economic resourcefulness.
How a Business Analyst and Financial Analyst are Similar?
All the parameters discussed above explain what is the difference between a financial analyst and a business analyst. However, despite all these differences, there are certain similarities in both domains. The first and foremost similarity is that they both do analysis work. They study the data gathered from different sources to find out the flaws and work towards eliminating them. Another similarity between business analyst financial analyst professionals is their ultimate goal. They both work towards company growth and upgrading the current operations with modern-day tools and methodologies.
What Should You Choose Between Business Analyst and Financial Analyst?
The question that arises in the minds of aspiring candidates is, out of business analyst v/s financial analyst which is better? It is challenging to answer this question. However, you can decide which one would be better for you. The factors you should consider while making a choice are:
- Which job role interests you the most? Are you inclined toward studying market trends and data patterns? Or are you comfortable with accounts? You can choose a domain based on the answer to these questions.
- Another factor you would have to consider is your qualifications. If you are a management graduate, you would be suitable for a business analyst position. On the other hand, a master degree in financial management or accounting candidates can fit into the job of a financial analyst.
- Learn about the skills required for both job roles. If you are a good communicator and master the art of negotiation, you can become a business analyst. However, if you are skillful but lack communication skills, you can choose to become a financial analyst.
Conclusion
It is crucial to understand the job roles of business and financial analysts and know how these two can contribute to growth. We have covered all the details about the financial analyst and business analyst differences based on different parameters. Considering them, you can infer that though they both do data analysis to make growth-related decisions, there is a significant difference in their domains.
One handles the operations, marketing, and sales aspects. The other manages all the financial agendas. So, if you are planning to build a career in the analytic domain, learn about business analyst versus financial analyst comparisons, and it will help you decide which field would be apt for you.
