With the intersection of finance and technology, it's tricky to determine the earning potential for roles that blend these fields.
In this article, we'll explore the financial systems analyst role and salary range to quantify the lucrative opportunities at the crossover of tech and money.
You'll see key details on median pay, factors impacting compensation, job outlook projections, and tips to maximize your career development and income over time.
Introduction
Financial systems analysts play a critical role in helping companies manage their financial data and systems. As the job title suggests, financial systems analysts possess skills and knowledge spanning both finance and information technology.
Defining the Financial Systems Analyst Role
A financial systems analyst is responsible for developing, implementing, and supporting financial applications and systems that help organizations record, analyze, and report key financial data. Typical job duties include:
- Evaluating an organization's financial data needs and systems
- Designing enhancements or solutions to improve financial systems and processes
- Configuring software like ERPs to meet an organization's accounting and financial reporting requirements
- Testing new financial applications and systems before deployment
- Training staff on using financial systems and analysis tools
- Providing support to troubleshoot issues with financial systems
In summary, financial systems analysts leverage their understanding of finance and accounting principles along with technical skills to ensure an organization has effective systems to manage finances.
Intersection of Finance and Technology
To succeed as a financial systems analyst, candidates need a diverse skillset spanning both finance and technology:
- Finance knowledge - Extensive understanding of accounting principles, financial reporting standards, data analysis methods, and related finance domains
- Technical acumen - Skills in areas like software development, database structure and management, data modeling, business analytics, and more
- IT troubleshooting ability - Able to diagnose and resolve financial application or infrastructure issues
- Communication and presentation skills - Can clearly explain technical financial concepts to non-technical stakeholders
The job brings together financial theory and technical implementation. Financial systems analysts take conceptual accounting and finance knowledge and translate it into functioning software systems and data analytics tools used across the business.
Key Responsibilities
Financial systems analysts play a critical role in supporting and enhancing an organization's financial operations through technology. Their key duties typically involve:
Supporting Financial Applications and Systems
Financial systems analysts are responsible for maintaining, upgrading, and optimizing the core software, applications, and information systems used for financial planning, reporting, and analysis. This includes systems like:
- Enterprise resource planning (ERP) solutions
- General ledger and financial close software
- Budgeting, forecasting, and financial modeling tools
- Custom analytics platforms and business intelligence systems
They ensure these systems integrate properly, have the latest updates, and provide accurate and timely data to facilitate financial decision-making across the organization.
Data Analysis and Reporting
These analysts utilize their expertise in finance, accounting, and information systems to compile, analyze, and clearly communicate essential financial data. Key tasks include:
- Extracting, validating, and manipulating large data sets from multiple sources
- Identifying trends and variances to budget via variance analysis
- Creating consolidated financial statements, leadership reports, KPI dashboards, and other stakeholder-facing materials
- Developing management tools to monitor budgets, forecasts, operating costs, and capital expenditures
- Automating reporting processes through scripts and queries
Testing and Troubleshooting
Financial systems analysts play a lead role in testing new financial applications and troubleshooting issues with existing systems. This involves:
- Thoroughly testing new applications and upgrades prior to launch
- Documenting systems processes to identify failure points
- Pinpointing the root causes of system malfunctions
- Performing diagnostics tests and debugging procedures
- Implementing solutions, workarounds, or new controls to optimize system performance
By leveraging their specialized expertise across financial management, data analytics, and information technology, financial systems analysts deliver vital support and insights to enable better financial decisions across the organization. Their multifaceted responsibilities require both technical know-how and a sound understanding of accounting and financial planning principles.
Skills and Qualifications
Technical Expertise
Financial systems analysts need a strong foundation in various technical skills to succeed in their roles. This includes expertise in:
- Financial management software like Oracle, SAP, and other ERP systems to analyze data and improve business processes
- Database management platforms like SQL to organize and query financial data
- Data analysis programs like Excel, Power BI, and Tableau to interpret trends and create visualizations
- Programming languages like Python to automate financial tasks
- Cloud platforms like AWS to manage storage and applications
Having hands-on experience with these technologies is key for financial systems analysts to extract insights from financial data.
Finance Knowledge
In addition to technical aptitude, financial systems analysts must possess in-depth finance domain knowledge including:
- Accounting principles like GAAP, IFRS, and managerial accounting
- Budgeting, forecasting, variance analysis, and financial modeling
- Understanding of internal controls, audits, and financial regulations
- Knowledge of FP&A processes and performance metrics
This expertise allows analysts to deeply understand organizational finances and requirements to improve decisions, processes, and profitability.
Certifications
There are many useful certifications financial systems analysts can pursue to validate and demonstrate their skills:
- CPA: Certified Public Accountant credential is the gold standard for accounting expertise
- CFA: Chartered Financial Analyst designation proves investment analysis competency
- FP&A: Certified Financial Planning & Analysis Professional certification for FP&A skills
- CMA: Certified Management Accountant demonstrates managerial accounting knowledge
- PMP: Project Management Professional for analysts managing large system implementations
Earning relevant certifications can give financial systems analysts a competitive edge and enable career advancement. Listing credentials on a resume signals technical and financial competency to employers.
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Salary and Job Outlook
Average National Salary Range
The average salary for a financial systems analyst in the US ranges from $65,000 for entry-level positions to over $130,000 for senior roles. Those working in major metropolitan areas like New York and San Francisco can expect to earn 10-15% above national averages.
Mid-career financial systems analysts with 5-10 years of experience typically earn between $85,000 and $110,000 on average. Those with specialized expertise in areas like business intelligence, data visualization, SQL programming, or cloud platforms tend to command higher salaries.
Factors Influencing Salary
Several key factors impact financial systems analyst salaries:
- Certifications: Earning credentials like Certified Information Systems Auditor (CISA), Certified Information Security Manager (CISM), or Certified in Risk and Information Systems Control (CRISC) can boost salaries significantly.
- Technical skills: Expertise in SQL, Python, Tableau, Power BI, AWS, or other platforms is highly valued and directly correlates with higher earnings potential.
- Industry: Working in the finance, banking, insurance, or technology sectors tends to pay better than other industries.
- Company size: Analysts at large enterprises earn approximately 20% more than those at small or mid-sized businesses.
- Location: Major urban centers pay higher salaries based on their elevated cost of living.
Job Growth Projections
The US Bureau of Labor Statistics projects a 10% increase in financial systems analyst roles between 2020-2030, faster than the average across all occupations. This uptick correlates with the expanding reliance on data, analytics, and technology within the finance domain.
As more financial institutions adopt cloud platforms, business intelligence software, automation tools, and other emerging technologies, demand for analysts with specialized technical skills will continue rising sharply in the coming decade.
Career Development Tips
Pursuing Ongoing Education
Continuing education is crucial for financial systems analysts to stay current on the latest technologies and methodologies. Consider taking additional courses in finance, accounting, business analytics, data science, and programming. Many colleges and universities offer certificate programs specifically targeted towards working professionals looking to upskill. Massive open online courses (MOOCs) are another flexible option to pick up new skills.
Some topics to explore:
- Financial modeling
- Data analysis with Excel, Python, R
- Accounting methods like GAAP, IFRS
- ERP systems like SAP, Oracle
- Agile project management frameworks
Pursuing an MBA with a concentration in finance or accounting is another way to advance into leadership roles. The connections and credibility gained can boost future career prospects.
Getting Certified
Professional certifications validate specialized skills and expertise. For financial systems analysts, relevant options include:
- Certified Information Systems Auditor (CISA)
- AWS Certified Solutions Architect
- PMI Agile Certified Practitioner (PMI-ACP)®
- Chartered Financial Analyst (CFA)
- Certified Public Accountant (CPA)
Many employers offer tuition reimbursement programs to cover certification expenses. Passing rigorous exams and meeting experience requirements demonstrates dedication and knowledge.
Joining Professional Associations
Industry associations provide resources for career growth through conferences, publications, training courses, and networking events. Connecting with peers allows sharing best practices and learning new perspectives.
Relevant groups include:
- American Institute of CPAs (AICPA)
- Association of Information Technology Professionals (AITP)
- Institute of Management Accountants (IMA)
- International Institute of Business Analysis (IIBA)
- Project Management Institute (PMI)
Participating in local chapter meetings, volunteering for association committees, and speaking at industry conferences builds visibility and leadership capabilities. The connections made can lead to new job opportunities, clients, or valuable partnerships.
Conclusion and Key Takeaways
Financial systems analysts play a critical role in helping companies leverage technology to improve financial operations and decision making. As this field continues to grow rapidly in the years ahead, salaries are likely to remain competitive to attract top talent.
Based on the data and analysis presented in this article, here are some of the key takeaways:
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The average salary for financial systems analysts in the US is approximately $93,000 per year. This compares favorably to related roles such as financial analysts ($63K) and accountants ($77K).
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Strong growth of 15% is projected in financial systems analyst jobs over the next decade, outpacing most other occupations. This increasing demand suggests salaries will continue rising.
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Experience, certifications, programming skills, and specialized expertise in areas like business intelligence and data visualization can boost earning potential. Those with 5+ years of experience can expect to earn 30-50% above entry level salaries.
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Major hubs for financial tech jobs include New York, San Francisco, Chicago, Boston and other large metro regions. However, remote work is also prevalent in this field post-pandemic.
For those interested in pursuing a career as a financial systems analyst, focusing efforts on acquiring in-demand tech, data, and analytics skills can maximize employability and earnings growth over the long run.
