What does a Financial Forecast Analyst really do?
There is not much information about what financial forecast analysts really do other than a slight hint from the job title. That alone is an advantage for those that practice the said profession. They have significantly less competition to worry about, have high salaries, and won’t run out of job opportunities no matter where they decide to drift. I’m going to decode a financial forecast analyst’s job description as best as I can just in case you’re interested to try it.
To understand what financial forecast analysts really do, let’s first explain what financial forecasting is. According to zenwealth.com, “Financial Forecasting describes the process by which firms think about and prepare for the future. The forecasting process provides the means for a firm to express its goals and priorities and to ensure that they are internally consistent. It also assists the firm in identifying the asset requirements and needs for external financing.” Much like in technical analysis (which day traders use by the way), financial forecasting is a fiscal management tool used to predict future financial conditions of a company based on past and present data. Visit www.wanderingtrader.com if you want to delve deeper.
Now off we go to the main topic which is what does a financial forecast analyst do? Now it’s simpler to explain. The practitioner analyzes the data from the financial forecast that has been drafted. It is his/her job to tinker the data for a more accurate prediction. Professional FFAs are highly paid and enjoy plenty of benefits. However, their reputation is always on the line. One miscalculation on their part could lead to serious losses, making the company they’re employed at in dire straits. A day trader experiences almost the same pressure, enjoys the same privileges but don’t really care about their reputation being on the line. That’s because no one mandates or supervises their activities. In other words, they don’t have a boss aside from themselves. With such perks, they earn more money than FFAs do.
According to the post written by Elizabeth Anderson for the Telegraph, “Businesses are increasingly employing freelancers to predict a company’s financial turnover within a given time period, usually one year.” That means it’s an up-and-coming profession you might want to pursue. And because you can do it at home; you can do it elsewhere, making traveling a possibility.