Financial Analyst vs Business Analyst

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Difference Between Financial Analyst and Business Analyst

A financial analyst is responsible for collecting and analyzing the company's financial information to make sound investment decisions. On the other hand, a business analyst analyses how the client is performing its business activities and suggests the client's steps to improve the business functions.

financial analyst vs business analyst

 

Infographics

Financial analysts and business analysts analyze the client's financial data, and based on such an analysis; they help the clients make important business decisions. However, due to the difference in the kind of data they analyze, they differ. Here are the infographics detailing the differences –

Financial-Analyst-vs-Business-Analyst-info

Similarities Between Financial Analyst and Business Analyst

  • Examination of Data - Both the financial analyst and the business analyst are responsible for examining their client's data and giving useful insight to the business owners based on their examination. While a financial analyst examines financial data, a business analyst examines the day-to-day business data.
  • Help Businesses in Decision Making - Both professionals intend to arrive at meaningful conclusions or facts to help businesses make important decisions. A financial analyst helps businesses make financial decisions, and a business analyst helps businesses make business-related decisions.
  • Can be Internal or External - Financial analysts and business analysts can either be internal to the business, i.e., an employee or an independent professional. If they are employees, they earn remuneration from the business entity, and if they are independent professionals, they earn professional fees from the business entity.
  • Strong Analytical Skills are Needed - These professionals require strong analytical skills since they must interpret data and help businesses make important decisions by making useful conclusions. Thus, they need to pay attention to minute details and relate one fact to the other to represent the business situation in a better manner.

Key Differences Between Financial Analyst and Business Analyst

Basis of DifferenceFinancial AnalystBusiness Analyst
Focus AreaFinancial analysts study a business's financial data and help the business make investment and other finance-related decisions. They perform financial modeling and conduct studies to make forecasts.Business analysts study the day-to-day operations of a business and advise regarding the management of business decisions. To do the same, they analyze business strategies, models, processes, and systems.
Educational RequirementsA person must have a bachelor’s degree in finance, economics, and economics to become a financial analyst.To become a business analyst, one must have an educational qualification in management, accounts, finance, and IT.
Skills RequirementA financial analyst's skills include financial planning & forecasting, financial reporting, business valuation, statistics, data analysis, MS Excel, etc.Business analysts must have the necessary expertise in planning, strategizing, implementing, and problem-solving to effectively carry out their job.
Salary RangeThe average salary drawn by a financial analyst ranges from $53,000 to $66,000.The average salary drawn by a business analyst ranges from $54,750 to $69,000.
Growth ProspectsThe growth prospects for the job are less as compared to business analysts.The growth prospects for the job are more as compared to financial analysts.

To become a business analyst, one must have an educational qualification in management, accounts, finance, IT, or pursue a master's in business analytics for specialized expertise.

These were some points that differentiate financial analysts from business analysts. It would be best to choose a career that best suits your educational qualifications, interest, and work experience.