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Pages:
3 pages/≈825 words
Sources:
Check Instructions
Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 14.04
Topic:

Financial Analyst Job Aid: Financial Responsibilities

Essay Instructions:

I have attached the template that was provided for this assignment. In case you chose to utilize the template.
What to Submit
To complete this project, you must submit the following:
Financial Analyst Job Aid
Submit your job aid as a 2- to 3- page Word document with 12-point Times New Roman font, double spacing, and one-inch margins. Or, you may use the Project One Financial Analyst Job Aid template (Attached. You can utilize the template if you would like) to help you complete this assignment. Sources should be cited according to APA style.
Competency
In this project, you will demonstrate your mastery of the following competency:
Describe the purpose and function of financial management in an organization
Scenario
You have been an entry-level financial analyst for six months. Your supervisor, who is about to fill another entry-level financial analyst position on your team, has asked you to create a job aid about the financial analyst role to help the new hire transition smoothly. The job aid needs to describe the responsibilities of a financial analyst, the essential elements of the role, and the impact the role has on a business.
Directions
Create a job aid for a new hire to an entry-level financial analyst position. Your job aid should be thorough yet easy for someone new to the field of finance to understand. You are encouraged to use the Project One Financial Analyst Job Aid template in the Supporting Materials section to complete this assignment.
Specifically, you must address the following:
Financial Analyst Job Aid: In this job aid, you will give a general overview of financial management and its importance to a business.
Financial Responsibilities: Describe the responsibilities of a financial analyst.
In this section, outline the responsibilities a financial analyst has in terms of financial management. Add 5 to 7 specific bullet points outlining these responsibilities, and use complete sentences so that expectations are clear.
Financial Management Decisions: Discuss the importance of using financial management for business decisions, and provide examples to support your claims.
Consider the bullet points you outlined above. How do those responsibilities help to inform management decisions, and what would happen if management didn’t have this information? This should be a brief paragraph with examples.
Accounting Principles: Explain how accounting principles are used to analyze a business’s financial health, and provide examples to support your claims.
Write a brief paragraph that explains accounting principles and how they are used within financial management in relation to analyzing financial health. What accounting information and approaches do financial analysts rely on, and how do they use it? What would happen if that information was not available or was not accurate?
Financial Statements: Describe how financial statements are used to help businesses make finance-related decisions, and provide examples to support your claims.
Consider identifying the information contained in financial statements and what financial analysts would need in order to do their job. What types of finance-related business decisions would this information help to inform? Provide real or fictional examples to help show this.
Financial Terminology: Explain how a financial analyst would use the financial terms in their day-to-day responsibilities in a clear, easy-to-understand way.
Define each term listed below and provide a 1- to 2-sentence explanation of how a financial analyst might use the term, especially when communicating information to management or clients, or when relaying information to inform important decisions:
Financial statement
Liquidity
Working capital
Diversification
Time value of money

Essay Sample Content Preview:

Financial Analyst Job Aid
Student’s Name
Institution
FIN 320 Project One Financial Analyst Job Aid
Financial Responsibilities

Financial analysts use their accounting, economic, and financial knowledge to plan, analyze, and predict future results for companies. Below are the day-to-day responsibilities of a financial analyst (Laskin, 2018):
* Collect and organize macro and microeconomic data- Financial analysts collect current and historical data from various sources such as the company’s historical financial reports. The information gathered is then entered into a database, such as excel, where it is cleaned and organized, ready for analysis.
* Analyze the data- The data is then analyzed so that the analysts can identify trends in the industry. They assess the earnings per share, return on assets, and equity, among others, and this is compared with other companies in the industry
* Make forecasts about future results and dynamics-The analysts use methods such as regression analysis to predict the future performance of the company based on the analyzed data from the past and present.
* Evaluate trends in the financial market- The trends identified during analysis are evaluated. This helps establish whether the company is performing well in terms of money management and investment
* Present information- Once the data has been analyzed, the analyst has to present it to decision-makers through PowerPoint presentations.
* Generate reports-Financial analysts write reports about their findings. The reports may focus on budgets, key performance indicators (KPIs), among others.
* Make recommendations- The analyst gains insights from the analyzed data and provides recommendations on how the company can improve its performance. Recommendations include how to increase revenues, market shares, and such.

Financial Management Decisions

Financial management helps a company’s management make more informed decisions. According to Flores, et al. (2019), the information produced by financial analysts helps reduce the agency problems that arise between shareholders and managers. Managers and shareholders use the reports generated by analysts to understand the financial health of the company. Managers use reports on KPIs to understand the performance of various business units in the company and decide which business units are performing and which are not. Such information is then used to decide how funds are allocated and managed in the company. Specifically, the prediction aspect of financial management allows the management to decide where to make future investments based on predicted performance results and identified trends in the industry (Sharma & Mittal, 2020). Also, the recommendations provided by financial analysts play a crucial role in decision-making. They ultimately help the management decide on how to maximize profits and value for shareholders (Sharma & Mittal, 2020). Will the company focus on cost-cutting, revenue growth, market share growth and such, to increase its bottom line? If managers lacked such crucial information, they would base their decisions on intuition rather than facts and financial evide...
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