A career in finance is highly dynamic and requires constant updating of skills . For those who want to grow and excel in this sector, there are five fundamental pillars to master.
They range from analyzing financial statements to mergers and acquisitions, which, when well developed, make finance professionals capable of facing market challenges.
What areas can be represented in a career in the financial market?
The financial market offers a very diverse range of activity, so professionals can find paths in conformity with skills and interests.
Here are some areas where you can build a solid career:
Investment Analysis : Researches and evaluates opportunities, recommending stocks, bonds or other assets.
Financial Consulting : Advising clients on financial planning and mergers and acquisitions, helping to improve their finances.
Financial Planning : Budgeting, planning and financial forecasting, aligning strategic decisions with the company’s long-term vision.
Investment Banks : Intermediation of large financial operations, such as IPOs, mergers and debt securities issuances, with high remuneration potential.
Compliance and Risk Management : Ensure compliance with regulations and mitigate financial and operational risks.
Capital Market : Operates in the issuance and trading of securities, such as shares and debentures.
Fintechs and Financial Innovation : Develops technological solutions for financial services, a growing area.
Tax Audit : Ensure financial compliance and optimize taxes for companies.
Corporate Finance : This area focuses on capital structure decisions, raising financing (loans, issuing bonds), and valuation. It is essential in strategic decisions about raising funds and expansion.
Treasury : That involves cash management, working capital, investments, and banking relations. In the same field, the person deals with liquidity problems, financial resources risk management, and maximum effective resource usage.
Having understood the key areas of activity in the financial market, let us now proceed to the discussion of how to prepare for career growth.
Below, we present the 5 fundamental pillars for growing in a finance career , essential for those who want to stand out and achieve leadership positions in the sector.
5 Pillars for Growing in a Finance Career
Professional growth requires more than technical knowledge.
To achieve prominent positions, it is essential to develop skills that go beyond the basics, aligning practical knowledge with the capacity for strategic analysis and adaptability to market changes.
Let’s explore five essential pillars that will help you stand out and build a solid career in the financial sector.
Analysis of Financial Statements
Understanding how financial data reflects and impacts a company’s strategies is essential for anyone looking to grow in the finance field.
This involves an understanding of accounting standards, the ability to perform audits and financial reviews, and familiarity with financial analysis software. Identifying relevant KPIs is also a skill in high demand.
How to develop:
- Get involved in accounting projects within your organization.
- Seek training on new features of ERP systems and financial analysis software .
- Develop strategic communication skills to share financial insights.
Planning and Forecasting
Building financial models to predict future performance is another critical skill.
Using financial analysis and planning tools, finance professionals can apply advanced techniques for scenario creation and risk management.
Modern approaches include the use of artificial intelligence (AI) and automation through RPA (Robotic Process Automation).
How to develop:
- Participate in real projects that require financial modeling.
- Take courses in data analysis and financial planning.
- Seek guidance from experienced mentors in complex business scenarios.
Cash Flow Management
Creating dynamic cash flow models and optimizing working capital are essential skills to ensure a company’s financial health.
Additionally, negotiating payment terms with suppliers and customers, and the ability to perform predictive analysis on cash trends are crucial.
How to develop:
- Engage in cash flow optimization projects.
- Take courses on working capital management.
- Participate in specific seminars on cash flow and financial management .
Valuation
Valuation is the process of determining the fair value of a company, and involves a number of techniques, such as the Weighted Average Cost of Capital (WAAC) assessment and discounted cash flow (DCF) modeling .
Additionally, it’s critical to comprehend intricate transactions like leveraged buyouts (LBOs) and intangible asset value.
How to develop:
- Obtain certifications such as ASA, CFA or CVA.
- Recognize how environmental, social, and governance (ESG) aspects affect a company’s value.
- Recognize new technologies and tools that help streamline the valuation procedure.
Mergers and acquisitions
Building an M&A model and knowing their legal and financial implications help in the growth of business in this area.
How to develop:
- Participate in workshops on M&A, even if assisted.
- Engage in real transactions, gaining hands-on experience.
- Keep up to date with the latest trends and legislation applicable to M&A.