Business Analyst vs. Data Analyst: What’s the Difference?

Key takeaways

While business analysts and data analysts both work with data, business analysts focus more on addressing business issues.

• According to Glassdoor, business analysts in the US earn an average base pay of $87,000, while data analysts bring in an average base pay of $76,000 [1, 2]

• Data analysts and business analysts require similar interpersonal skills, such as oral and written communication, problem-solving, critical thinking, organization, and collaboration.

• You can begin your journey as a data analyst by earning a degree in computer science, statistics, or math.

Discover the differences between business analyst vs. data analyst roles, why you might choose to pursue either as a career, the necessary education, and the salaries for both roles. If you’re ready to begin your career journey down one of these paths, enroll in the Microsoft Business Analyst Professional Certificate. In as little as three months, you can learn about data modeling, business analysis, data analysis, stakeholder engagement, and more.

What is a business analyst vs. data analyst?

Business analysts and data analysts have similar roles, and some companies might use the terms interchangeably. Yet, while both types of analysts use data to improve business decisions, they do so in different ways. 

What do business analysts do?

Business analysts help identify problems, opportunities, and solutions for their organizations. They do this by:

• Evaluating a company’s current functions and IT structures

• Reviewing processes and interviewing team members to identify areas for improvement

• Presenting findings and recommendations to management and other key stakeholders

• Creating visuals and financial models to support business decisions

• Training and coaching staff in new systems

What is a business intelligence (BI) analyst?

BI analysts are somewhat of a hybrid between business and data analysts. They use analysis, modeling, and visualization of industry trends and the competitive landscape to help businesses cut losses and increase profits.

What do data analysts do?

Data analysts gather, clean, analyze, visualize, and present existing data to help inform business decisions. An effective data analyst uses data to answer a question and empower decision-makers to plot the best course of action. Common tasks for a data analyst might include:

• Working with business leaders and stakeholders to define a problem or business need

• Identifying and sourcing data 

• Cleaning and preparing data for analysis

• Analyzing data for patterns and trends

• Visualizing data to make it easier to understand

• Presenting data in such a way that it tells a compelling story

Learn more about the job of a data analyst in this lecture from Google's Data Analytics Professional Certificate:

Educational background

Business and data analysts can come from various academic backgrounds, though many companies look for candidates with at least a bachelor’s degree. Generally speaking, business analysts might have a degree in a business-related field, while data analysts often have degrees in STEM fields like statistics, math, or computer science.

Earning a graduate degree focusing on data analytics could open opportunities for advancement in either field.

Read more: What Is a Bachelor’s Degree? Types, Cost, and Application Requirements

No degree is required for some entry-level roles

Earn a Professional Certificate in data analytics from Google or IBM to build the skills necessary for an entry-level data analyst role in less than six months of study.

Skills: Data analyst vs. business analyst

Data analytics and business analytics require similar interpersonal skills but slightly different technical skill sets. Whichever path you choose, for example, you can set yourself up for success by being a good:

• Oral and written communicator

• Problem solver

• Critical thinker

• Organizer

• Collaborator

While both occupations work with data, they do so in different ways. Here’s a look at some common skills for each.

Business analyst vs data analyst: Who earns more?

The in-demand skills involved in data and business analysis often draw high salaries. According to Glassdoor, business analysts in the US earn an average base pay of $87,000 as of May 2026, while data analysts bring in an average base pay of $76,000 [1, 2].

Discover more about data and business analysis with our free resources

Subscribe to our Career Chat newsletter on LinkedIn for industry insights, skill-building tips, and networking opportunities. Then, explore our free resources related to data and business analysis:

• Gain professional insights: Meet the Data Analyst Using His Creativity to Tell Visual Stories

• Watch on YouTube: Data Analyst vs. Business Analyst: Which Career Path Is Right for You?

• Get answers: 7 Questions with a Data Analytics Professor

Whether you want to develop a new skill, get comfortable with an in-demand technology, or advance your abilities, keep growing with a Coursera Plus subscription. You’ll get access to over 10,000 flexible courses. 

Build job-ready skills with Coursera Plus

Start 7-day free trial

• 
• 
• 
• 

Start 7-day free trial

Frequently asked questions (FAQ)