According to a LinkedIn survey, financial analysts with expertise in financial modelling earn an average of 20% more than their peers. In 2023, the demand for such professionals grew by 15%, highlighting the increasing demand for these skills in the finance sector.
Whether you are looking to switch careers, or looking for a promotion, you can use financial modelling knowledge to predict a business’s financial performance.
Pursuing a financial modelling course, especially online, allows you to learn on your schedule. The best financial modelling courses offered by reputed colleges have comprehensive curricula and can be completed in a short time.
So why can a financial modelling course be your secret sauce, accelerating your career to new heights in 2024? Let’s find out.
What is the financial model?
Financial modelling is the process of creating a digital representation of a company’s financial performance. Consider it as a strategic roadmap that guides a company in its financial transactions and overall revenue.
Much like an architect uses a building’s blueprint to define its structure, financial models establish the framework of a company’s financial health. Experts who use financial models use historical data to understand the company’s financial core and identify areas of improvement.
This in-demand field is attracting professionals worldwide. Financial modelling can be a rewarding career if you enjoy working with numbers and contribute to a company’s financial well-being.
Financial modelling involves creating various strategic models for:
- Company valuation: Estimating a company’s current worth, crucial for acquisitions and attracting investors.
- Cash flow analysis: Understanding how money moves in and out of the business, ensuring smooth operations and avoiding potential shortfalls.
- Future financial statements: Building future reports on income statements, balance sheets and cash flow statements.
- Scenario testing: Exploring what-if situations to explore different financial strategies and outcomes
- Investment decision: Evaluating potential investment moves.
How does financial modelling work?
- Collect data: Gather past financial history such as financial statements.
- Make educated guesses: Informed assumptions based on what’s known such as market trends, economic forecasts, and the company’s growth.
- Build models: Use financial modelling tools such as Excel to craft the plan.
- Test ideas: Exploring different scenarios and seeing the outcome.
- Adjust as needed: Tweak the plan based on changing circumstances.
Importance of financial modelling
Financial modelling is an essential component for a company as it plays a huge role in making high-stakes choices within the company.
Just as a building requires a strong foundation, financial models provide the groundwork for informed strategic decisions. This is why expertise in financial modelling is highly sought after by businesses.
Financial models are instrumental in implementing business decisions and obtaining desired results. It helps the organisation in:
- Making wise decisions based on the company’s previous financial history and informed assumptions.
- Identifying and mitigating potential risks
- Anticipating future financial needs and performance
- Analysing the financial viability of potential investments
- Translating complex financial data to an understanding format
How do you benefit from financial modelling courses
A financial modelling course can help you with:
- Developing skills and techniques that are globally relevant and applicable across different industries.
- You can be an expert in one of the highly sought-after skills.
- You will learn extensively about the different techniques and tools used in the field such as Excel.
- You will gain the knowledge to build your quantitative financial models to break down complex financial data and predict the outcome.
- Sharpen your decision-making, analytical and quantitative skills.
- You will learn how to recognise the critical factors and components of large financial datasets.
- Increase the chances of getting a job with a high salary.
- Boost your job prospects.
Where is financial modelling widely used?
From big corporations to budding startups, financial modelling is widely utilised in a variety of industries, including:
- Investment Banking
- Credit rating organisations
- Equity research
- Mutual funds (MFs)
- KPOs in the financial sector
- Education industry
- Healthcare Industry
- Real estate development
- Companies that specialise in project finance using financial modelling
Financial modelling specialists with their expertise in using Microsoft Excel are increasingly in-demand.
Their expertise is valuable in commercial banking and across various sectors. Businesses recognise this skill’s immense value, actively seeking people who can convert raw financial data into actionable insights.
By enrolling in a financial modelling course, you can take you career to next level.
You can learn financial modelling courses effectively and efficiently online in a short time, potentially within 10 weeks.
Consider enrolling in a financial modelling course today!
