What are financial analytics?
Financial analytics is the practice of creating ad hoc analysis to forecast possible financial situations in the future and answer business questions. It is used for strategic purposes and is evolving quickly to suit the shifting needs of traditional finance departments. Financial analytics roles are often very closely related to or can include Enterprise Performance Management (EPM) and Corporate Performance Management (CPM), however there are a few differences between them.
What is EPM?
EPM is the process of analysing the metrics and methodologies to manage performance across an organisation. It incorporates all primary lines of business operations including manufacturing, finance, marketing, supply chain and sales.
What is CPM?
CPM is fundamentally the same as EPM and is used to provide a company-wide solution with a primary focus on reporting and insight for finance . It is usually harnessed in order to provide CFOs with better tools for decision making, enable regulatory compliance and increase a company’s profit margins.
What kind of skills do financial analytics jobs require?
As finance can have highly complex processes, it requires a firm understanding in in the wider financial function and background. This is usually gained from a bachelor’s degree in economics, business studies or accounting. Academic training is then offset with appropriate technical and soft skills.
Financial analytics technical skills:
- Good grasp of the wide range of data reporting and visualisation technologies
- Knowledge of CPM and ERP software
- Related finance degrees, CFA/ACA/ACCA/CIMA/CPA qualifications and MBAs from leading institutions also desirable
Financial analytics soft skills:
- Good research skills in order to assess the market and internal data
- Good written and verbal communication skills
- Good leadership and decision-making skills
What kind of financial analytics roles are there?
- Finance Systems Director
- Group EPM Systems / Finance Systems / BI Manager
- Project Manager (EPM / Financial Consolidation Systems / Planning Systems specialisms)
- Systems Accountant
- Finance Systems Administrator
- BI Developer
- BI Analyst / Report Developer
