Financial advisors have big responsibilities. If you are looking to hire one, you need to make your choice wisely. Ideally, you’re looking for a candidate that is trustworthy, highly skilled, and of course, one that can handle your finances as you need them to.

Finding the right financial advisor is not an easy task and it might take a while. However, there are some things that you can do to make it a more successful choice. Let’s take a look at the 7 best tips to hire the perfect financial analyst this year. 

1. Figure out what type of analyst you need

If you hire an analyst that doesn’t specialize in what you need them to do, it is not really their fault when they cannot do the job, right? This is why, before you start your search and interview candidates, you need to figure out what type of analyst you need. 

This is a broad field, which means that there will be candidates on the market with different skills and capabilities. Some will offer both financial planning and investment management services, but others will focus only on one. An analyst might have expertise and experience in wealth accumulation, but not retirement income planning. 

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That being said, you need to consider your options and figure out what type of analyst you need for the job in question.

There are three general categories of analyst services:

• Investment advisory. These experts focus on investment management decisions. They’ll help you spread your investments in different accounts, give you advice and insight, etc. 

• Financial planning. This category has many different aspects and is based on your finances. It can include anything from choosing and getting the right insurance to deciding on how much you can save.

• Retirement planning. As the name tells you, advisors that specialize in this will help you coordinate your retirement plan including things like taxes, Social Security, pensions, and other investments for the future.

One analyst can tackle one or more of these categories and have specific skills based on their experience and expertise. That’s the second step in this guide - assess the skills you need from the candidate.

2. Assess the skills the candidates possess

When you know what you need the analyst for, you’ll know what type of skills they need to possess to work for you. You should never hire someone for a position as important as this unless you assess their key skills first. Let’s take a look at the fundamental skills that financial advisors have these days:

• Accounting. This skill is a must for almost every type of financial analyst position. Good analysts will be proficient in accounting, which will allow them to manage, track, and record transactions with ease. This will eliminate the number of errors, maximize your potential for revenue, and help you form better plans for your organization.

• Analytical thinking. To be good at his job, a good finance expert should know how to plan, predict, identify, and prioritize financial problems that the company or individual faces. They’ll be able to solve problems using experience and strategic thinking, as well as perform analysis of the financial markets to come up with solutions.

• Business intelligence. Good financial professionals can predict the upcoming sales and inventory information. They’ll use analytics software to obtain and share data-based insights to boost the success of the organization.

• Cash flow management. If done poorly, cash flow management can ruin your organization entirely. According to SynergyStrategies, 82% of all businesses fail because of this. It is one of the main reasons why people hire professionals - because they know how to track and manage the financial operations of the company. 

• Financial modeling. Financial analysts use modeling to track the performance of the company during a specific period of time. This helps them compare the different progresses, estimate how much new projects will cost, and plan strategically.

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3. Assess other pre-employment skills for the job

Financial and analytics skills aren’t the only thing that the candidates should possess to be a right fit for your company. When you’re hiring them, you should also pay attention to their soft skills such as communication, teamwork, as well as their knowledge of programs necessary to perform their work, such as Excel. 

When someone applies for a position as an analyst, you probably assume that they know how to use the most-used programs like Excel. Still, you’d be amazed at how many candidates omit this part in their resume not because they forgot about it, but because they don’t know it as they should. Implementing a pre-employment Excel skills test of high quality, such as the one by TestGorilla will help you cover all bases - and see if the candidates have the right skills for the job. 

On the Test Gorilla website, you can also find a variety of other tests that can help you check the qualifications of your financial analyst. 

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4. Seek candidates with reputable credentials

Becoming a financial analyst is not an easy task. Still, some degrees and certifications are easier to get than others, just like in any other industry. If you want the best candidates available, you should carefully check their credentials. Not everyone who appears to be an expert has the necessary training and experience to handle the job properly.

This particular job position is so tricky and demanding that you cannot afford to hire anyone that is not great at what they do. That being said, look for people with reputable credentials such as Certified Financial Planners (CFP), or Personal Financial Specialists (PFS). Another valuable credential is the CFA or the Chartered Financial Analyst certification. 

Additionally, you should check the National Association of Personal Financial Advisors to see if the candidate in question is a member. This association is very careful about choosing only qualified and certified profession