EduPristine has been running a fairly popular program (Trained 1000 people in the last year) on Financial Modeling in Excel. Financial Modeling offers following benefits which can be quite useful for Finance Professionals:
Structured Thinking: Financial Modeling require you to think straight and convert your thought process into Excel Spreadsheets. So the first part that should be taught is structured thinking. This can be done through exercises on Market Size Estimation, Marketing Funnel, Deriving the right drivers for Revenue, Costs, etc. Once you start thinking in a structured manner, the models automatically start rolling out. When you create the models, they should have a logical flow.
Mastering Excel as a Tool: Since most of the time would be spent in implementing the model in Excel unless you are very comfortable with the tool, you would take too long navigating the tool rather than creating the model. Excel Shortcuts, knowing advanced functions, the referencing framework, etc. will play a big role in helping you quickly implement your thoughts in Excel.
Correct Formatting: Other people would read your model and come to some decisions. If your model is not legible (fonts, results, spreadsheet, navigability, etc.), the model is not going to be useful. You will get to learn all kind of formatting in Excel.
Analysis: As a finance professional your job is to analyze data and come to conclusions. Each step of analysis and its implementation (Ratios, Valuation, etc.) should be taught to Finance Professionals. Financial Modeling will make you pro at analytics.
Dashboard Building: Final results need to be presented. Most of the times, even good models are rendered useless unless they have a good dashboard to highlight the results to the end user. Become adept in dash-board building.
Get FREE LinkedIn Model designed by Experts, to get a brief idea how Financial Models work Interesting!
Why do Financial Modeling from EduPristine?
Get trained by topic experts with interactive learning. Create models following a step-by-step approach devised by professionals. Get doubts solved by our experts within 2 business days.
The first is in pursuing an education in accounting or finance. I find it unfortunate that financial modeling is not taught as a complement to introductory accounting or finance courses. Like most aspiring Wall Street bankers, I learned this skill set to get a job. I had little in the way of instruction, and I struggled immensely to complete this exercise the first time. What shocked me was how my understanding of financial statements improved in this process. Everything I had previously read about accounting and financial statements came together as the model developed.
In my opinion, financial models can provide visuals that make otherwise abstract accounting and finance concepts easy to grasp. To explore this approach I have shared financial modeling instruction with several universities.
Why Financial Models are prepared?
Financial models helps in conducting historical analysis of a company, projecting a company’s financial performance used in various fields such as Project Finance, Real estate, Personal finances, Non-profit organizations, Banks, Oil and Gas projects, Financial institutions, Government, Investment banking, Equity research etc.
These professional models are predominantly used by the financial analyst and are constructed for many purposes, such as valuation of a company/security, determining the benefits/demerits of a takeover or merger, judging an Initial Public Offer (IPO), forecasting future raw materials needs for a corporation etc.