Data Analyst vs. Financial Analyst

The work of a data analyst usually starts by working with stakeholders to identify needs, collecting and cleaning primary data sources that can solve the quantitative problem, and generating charts, and presenting them to stakeholders and recommended solutions or optimizations.

A financial analyst deals with specific financial data and looks at how a business is performing financially. Their job is to ensure that funds are being used for profitable investments and that the financial status of the company is always in positive standing.

They should be proficient in creating financial models. These are their primary tool and are used for budgeting, forecasting, and assessing the cash flow of the company in terms of decision-making and investments.

There are many differences between a data analyst and a financial analyst including education and responsibilities.

Here are the key differences between a business analyst and a financial analyst:

• A data analyst requires a Bachelor's degree in data analytics or a mathematical area such as statistics

• A financial analyst requires a Bachelor's degree in finance or economics

• A data analyst uses information from data trends to develop business strategies that may or may not apply to investing decisions

• A financial analyst uses financial and economic data to assess the worth of investments and expenses

• A data analyst is responsible for gathering and interpreting data to improve IT systems and business processes

• A financial analyst uses financial data to assess the financial health of the business

• A data analyst uses statistical models to forecast future products, spot trends, and glean information for business decisions

• A financial analyst must be able to forecast the financial health of the company and show the growth of the business