When one thinks of financial analysts and then one hears of financial consultants, it mostly sounds exactly the same to the general lot of us. To say the least, the terms are used in terms of mutual exclusivity. What we mean to say is that these terms have a little too much in common for those of us who are outsiders, looking in on the complex financial world.
But if you happen to do a little research on the job titles, you will find that there are many things that vary. There are job responsibilities as well as abilities that differ in either position. So then, what exactly are these differences that define the layout of each job?
How is a financial analyst different from a financial consultant? Further, which option is better for a company to hire in order to receive an accurate financial forecast from in order to let the company grow?
Let’s begin by looking at how a financial analyst works as opposed to a financial consultant:
Financial Analysts- While both are positions which are entitled to study the market, study and analyze the financial trends, the position as well as the majority focus of work that a financial analyst does for the organization they work for. Analysts generally work as part of a company’s internal team and work along with a host of others to develop the financial strategy which will be put in place to achieve the yearly goals.
Their area of concern is putting together a consolidated list of reports and strategies which help analyze the investment that the company has made. The evaluations they make are not just aimed at growth of the company but also, in terms of how well the existing investments are faring.
Financial analysts then work as part of a goal oriented team; they are micro and macroeconomic experts who offer sound financial advice on market trends and broader economic changes.
Financial consultants- As opposed to financial analysts, consultants offering financial consulting services work by offering a third person point of view to larger companies or even wealth managers. As their name suggests, they provide expert consultations on not just immediate market trends or the generalized state of affairs in the economy but more focused issues such as increasing shareholder value or working on increase in ROI.
Financial consultants or advisers work towards helping the wealth managers of a firm, finance team of a company of the top brass of an organization make sound decisions such as mergers, acquisitions etc. They focus on developing modules which aim at improving wealth management. Consultants can also help organizations design and strategize their financial structures as well as compensation packages for the upper tier of management.
So, when it comes to financial planning and management, it is much more beneficial to host a company who can outsource your requirement for financial consultants as they not only have a scope much wider than financial analysts but also are equipped to give more a niche opinion on how best to manage your immediate financial and man power resources.
There are several companies such as Aurelius Corporate Solutions who excel in providing financial consulting services. An organization can approach them for an extended regard in addition to your internal finance team’s insights.