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Business Analyst vs. Data Analyst: What’s the Difference?
Learn how data analysts and business analysts work with data to drive better business decisions (and find out which might be a better career fit for you).
April 16, 2021
Article
Business analysts use data to identify ways that businesses can improve efficiency, reduce costs, or strengthen processes. Learn how to get started in this growing career path.
Grow key business analysis skills
University of Pennsylvania
Skills you'll gain: People Analytics, Customer Analysis, Marketing Analytics, Customer Insights, Business Analytics, Financial Statement Analysis, Analytics, Data-Driven Decision-Making, Operational Analysis, Descriptive Analytics, Predictive Analytics, Performance Measurement, Financial Analysis, Peer Review, Workforce Planning, Human Resources Management and Planning, Talent Management, Consumer Behaviour, Data Analysis, Financial Accounting
Beginner · Specialization · 3 - 6 Months
Johns Hopkins University
Skills you'll gain: Microsoft Excel, Data Presentation, Operations Research, Regression Analysis, Excel Formulas, Pivot Tables And Charts, Business Analytics, Business Analysis, Business Modeling, Mathematical Modeling, Resource Allocation, Spreadsheet Software, Statistical Methods, Financial Modeling, Productivity Software, Process Optimization, Complex Problem Solving, Transportation Operations
Intermediate · Course · 1 - 3 Months
Skills you'll gain: Data Presentation, Data Storytelling, Data Cleansing, Data Visualization, Data Validation, Rmarkdown, Data Integrity, Interactive Data Visualization, Data Ethics, Dashboard, Ggplot2, Data Quality, Stakeholder Communications, Data Literacy, Data Visualization Software, Data Analysis, SQL, Interviewing Skills, Analytical Skills, Applicant Tracking Systems
Build toward a degree
Beginner · Professional Certificate · 3 - 6 Months
A business analyst uses data to discover new business insights for a company. They typically focus on improving efficiency and effectiveness, and may work across all areas of business, including IT processes, organizational structure, or supply chain management.
At the entry-level, a business analyst may participate in team efforts to identify and prioritize an organization’s functional and technical needs, use SQL and spreadsheet software to conduct data analysis, and create data visualizations and financial models in order to address crucial business questions.
Similar and adjacent roles include IT business analysts, data analysts, business data analysts, supply chain analysts, and business intelligence analysts.
Learn more about entry-level careers in business analysis:
The average base salary for a business analyst with 0-1 years of work experience is $69,847 in the US as of February 2024, according to Glassdoor*. With 1-3 years of experience, the average salary increases to $77,467, and across all years of experience, the average salary is $87,692.
*Glassdoor. “Business Analyst Salaries, https://www.glassdoor.com/Salaries/business-analyst-salary-SRCH_KO0,16.htm.” Accessed February 2, 2024.
Some skills to include on a business analyst resume are data analysis (such as cleaning, sorting, and visualizing data, programming languages like SQL, Python, or R, and programs like Microsoft Excel, Google Sheets, and Tableau), business strategy, financial analysis, and problem-solving.
To become a business analyst, first sharpen your business analysis skills. Gain a strong understanding of data analysis and business strategy. It may help to take a course, earn a certificate, or earn a degree in business or data analysis. Then, start searching for entry-level roles in an accounting, finance, or business setting. Try searching for job titles like “junior business analyst” or “entry-level business analyst.” Check out our entry-level job guide for more job search tips.