A Complete Guide To Become A Certified Financial Modeler

In today’s market, a certified financial modeler is highly demanded. In the globalized world which we are all part of, a certificate that proves or justifies your skills is rewarded. The general degrees we receive don’t usually mention the practical skills we have acquired over the years. The marks or grades don’t convince our recruiters about our skills. A course in financial modeling gives the maximum importance to practical training. So, to find out about how you can become a certified financial modeler, read the following article.

Financial Modeling

Financial modeling is a process through which various transactions that have occurred in a company or a firm are recorded systematically on the computer. Software is usually downloaded to the computer for this task. Almost all sectors deal with recording monetary data using excel for this purpose. Excel spreadsheets are used to record and compile data like the profits, losses, revenue collections, investments, taxes, money to be received, etc. 

The spreadsheets are highly efficient in recording these data. You can make calculations on the spreadsheets themselves. While the task of recording financial data took place earlier also, it is only due to the introduction of technology that the work has become much more organized and the number of errors has also reduced significantly. In the fast-moving world, we are all part of today, the number of transactions and monetary exchanges has increased. In such a society, if there are constant errors in the recordings, then this will lead to a collapse in the system.

The process of financial modeling also helps the task of forecasting. Forecasting forms an important area in the field of finance and business. In simple language, to forecast means to predict. This prediction includes making an estimate of the profits a company can make in the future, places where the firm can make profitable investments, the best timing to introduce new commodities, etc. Forecasting can never be possible without financial modeling. Thus, to be precise, all the activities in finance like analysis, modeling, and forecasting are interlinked.

How Can You Become a Certified Financial Modeler

To be certified in any task, you need to do a course. A certified financial modeler is a person who has done a course on financial modeling. Certifications are one of the most valued assets in today’s job world. If you look around yourself, you will find huge numbers of certification courses today. We today find courses on fitness like Zumba, yoga, pilates, etc. Similarly, we find courses on music, writing, dancing, etc. The reason these courses are famous is that the certifications these courses provide acknowledge the skills we have. 

Unlike an MBBS degree or an engineering degree, which are practical-based degrees, a normal degree in arts or commerce will not prove our skills to our recruiters. And in the current market, more than the number of degrees one has, it is the skills and practical knowledge of the person which are more valuable. Seeing the current market situation, a lot of institutes have started various certification courses. One such course is the financial modeling course. 

A financial modeling course is a skill-based course that deals with the practical aspect of finance. The tools that are used, techniques, methods, etc. At the end of this course, you will receive certification that would acknowledge the skills acquired by you. Thus you will then be a certified financial modeler.

Scope of Being a Certified Financial Modeler

A certified financial modeler is a highly demanded and valued person. Just think about a situation where you are a recruiter. Two candidates come before you. One of them has the educational qualification needed to get a job in the finance department but has no practical exposure to the financial system. The second candidate also has the same educational qualification but along with this has a certificate in financial modeling. As a recruiter, you would definitely choose the second candidate. The reason is that while both have the same qualification, the practical skills that the second candidate has already acquired would need to be first taught to the other candidate and it will take time for him to get acquainted with them. 

As a certified financial modeler, you would know how the current market works. Tools and techniques used in the finance department would be taught to you in great detail. Most institutes use graphical representations and case studies to teach and train students on ways to analyze situations based on monetary representations.

The assignments you are supposed to submit after each theory class will test how many of the concepts were you able to grasp during the class. Most of the institutes require the students to give a test before they finally hand over the certificates to students. Thus as a candidate, you will be a highly eligible fresher.

The institutes also provide you with placement assistance. Sometimes it becomes difficult for you to find a suitable job. The institute will help you through this process. The mock interview rounds, soft-skills development, and regular contact with the concepts and the practical assignments will help you gain the confidence required to crack an interview. As a certified financial modeler, in spite of being a fresher, you will have the practical knowledge that can be achieved by others through experience.

You can also read: Scope of Financial Modeling

Jobs You Can Do After You Become a Certified Financial Modeler

• Book-keeper
• Financial Analyst
• Tax Analyst
• Financial Forecaster
• Auditor
• Accountant
• Bank Employee/Manager
• Equity Research Analyst
• Revenue Collector
• Investment Advisor

Skills Needed By a Certified Financial Modeler

– Knowledge of Excel: A financial modeler needs to be well-acquainted with MS Excel. Excel is the most important tool used in the field of finance. Excel spreadsheets are used for recording financial records. A person working in this field needs to be well-versed with excel. The daily recording of profits, losses, transactions, investments, etc along with the calculations are all done on the excel spreadsheets. A person with little or no knowledge of excel is not at all fit for this role.

– Team Spirit: There are usually a number of people who together work as a team for the proper working of the finance department. Planners, analysts, modelers, forecasters, researchers, advisors, etc are all part of the team. As a financial modeler, you would need to consult and interact with the other members. Finance is a critical area and needs to be a well-coordinated system. Anyone working as a financial modeler must know to work as a team. Hence, team spirit is a huge necessity in this field.

– Problem Solving Ability: As a financial modeler you must possess the capability of solving problems. There can be multiple kinds of problems that arise during the process of data recording- errors, system breakdown, missing records, etc. Panic is one of the most frequent occurrences in such a situation that needs to be avoided. As a financial modeler, you would be required to control your anxiety and deal with any crisis in a mature and calm way. Since the crisis is a part and parcel of this job, your controlled reactions are a necessity for the system to work efficiently.

– Simplification of Data: Most of the data received by financial modelers are complex. It is the job of the certified financial modeler to use this complex data, analyze it, and thereby transform it into a simple and comprehensible format. You must have the ability to convert the critical data into a readable format. While you may be a financial modeler used to such complexities, the person to whom you are showing that data, may not understand it at all. So, simplification of data is a must.

You can also read: Financial Modeling Skills

Eligibility Criteria To Be a Certified Financial Modeler

To be a certified financial modeler, you must be from a finance or commerce background. While some institutes allow students from other streams as well, most institutes prefer students from the commerce field. The reason is the basic knowledge that a student of commerce would possess. As a person from a completely different background, the basic or primary concepts would not be clear to you. To do a financial modeling course you would then need to first do a thorough self-study regarding the basics. Being a professional course, financial modeling will not delve much into the basics.

You must possess basic English knowledge- writing, reading, and communication. The course would be delivered to you in English and the tools and techniques you would use on the computer would also be in English. In such a scenario, a very basic knowledge of the language that would help you to communicate your ideas and thereby understand what others are saying is a prerequisite.

You must know basic computer application skills. While how to use excel and powerpoint would be taught to you, what the other tools are used for or the shortcut keys, etc must be known to you. The syllabus of this course covers the advanced topics that the institute would just brush upon briefly on the basics. So to be eligible for this certification course, you must be well aware of computer functions.

You can read: Guide to Financial Modeling Course

Top 4 Institutes That Will Help You To Become Certified Financial Modelers

1. IIM SKILLS

Today IIM SKILLSranks as one of the best educational institutions providing online certification courses to students. The courses they provide are student-oriented in the sense that all the syllabuses are designed to help, teach, and train students. Each concept is delved in detail and sufficient time is dedicated to each new concept. The institute has some of the best trainers in their faculty who are both knowledgable as well as friendly enough for students to approach them in times of crisis or doubts.

• Course: Financial Modeling Course
• Duration: 3 to 4 months
• Mode: Online Mode
• Course Fee: INR 39,900 + 18% GST

1. Basic and Advanced Excel

• Introduction and understanding of the Ribbon
• Keyboard shortcuts
• Regular use functions- Vlookup, Index, etc
• Rules of Conditional Formatting
• Data Validation
• Table functions
• Pivot tables, Pivot Charts, and Slicers
• Different types of charts and graphs
• Sensitivity analysis
• Delimit and Flash Fill
• Return functions
• What-If analysis

2. Accounting Concepts and Financial Statements

• Key Accounting Fundamental concepts
• Understanding the Income statement, balance sheet, and cash flow
• Concepts of keyline items
• Concept of comprehensive Income
• Relevance of Notes 
• Preparing common size financial statements
• Reading of Annual Report

3. Ratio/KPI Analysis

• Types of Ratios
• Activity Ratios
• Liquidity Ratios
• Solvency Ratios
• Profitability Ratios
• DuPont formula
• Valuation Ratios
• Basic and diluted EPS
• Financial Summary

4. Basics of Financial Modeling

• Structure for a financial model
• Creating Scenarios
• Building Revenue
• Preparing different schedules
• Projecting financial statements
• Error tracking skills
• Formatting tips
• Addition of cover page

5. Types of Financial Models

• LBO Model
• Three-Statement Projection Model
• M&A Model
• Private Equity Return Model
• 13 Week Cash Flow Model

6. Business Valuation

• Relative Valuation
• DCF Valuation
• NAV Approach
• Football field analysis
• Valuation Output
• Valuation Report
• Pre-money and Post-money valuation

Advantages of doing this course:

– Latest tools like MS Excel and PowerPoint are used to train students

– Students are provided with placement assistance with guaranteed interview opportunities

– Advanced and updated curriculum is used to teach you so that you are well-versed with the latest developments in the market

– Professional trainers who are experienced and possess advanced knowledge in the field of finance are responsible for training students

– Course completion certificate is provided to you once you pass the test designed by the institute at the end of the course

– Regular assignments help you to develop your skills and improve on your errors

– You are provided with feedback along with regular classes and projects

Contact: +919580740740, [email protected]

Other Courses Provided By IIM Skills

• Business Accounting and Taxation Course
• Digital Marketing Course
• GST Practitioner Course

2. IMS ProSchool

This institute is considered to be one of the finest and most well-known institutes providing courses specific to the field of finance. The practical approach to theory-based knowledge has helped students over the years to trust this institute’s courses and prescribed syllabus.

Course: Financial Modeling Course

Duration: 55 hours of Training

Mode: Classroom; Live Virtual; Self-Study

Fees: 

• INR 40,000- Classroom program 
• INR 32,000- Live Virtual Classes
• INR 20,000- Distance learning/Self- Study

Syllabus:

• Excel Proficiency
• Formatting of Excel Sheets
• Advanced functions
• Advanced Modeling Techniques
• Data Filter and Sort
• Charts and Graphs
• Table formula and Scenario building
• Pivot tables
• Financial statement analysis
• Cash flow statement
• Balance sheet
• Time value of money
• DU point analysis
• Capital budgeting
• Forecasting revenue
• Life of project
• Analysis of historical financial statements
• Valuation based on DCF and relative valuation

Advantages of doing this course:

– More than 80% of the course is practical-oriented with the maximum focus given on the assignments and practicals

– Additional Training Certifications on VBA- Macros and Merger Acquisition- M&A

– Graphs and diagrams are used for the proper practical analysis of situations

– Students are exposed to real-life work situations to help them understand the complex and critical system surrounding finance

Email:  [email protected]

Phone: +91 9619207323

3. Grant Thornton Academy

Grant ThorntonAcademy or GTA is an institution with a reputation for providing highly efficient courses. Their syllabus is designed specifically to help students secure jobs at good places and companies.

Course: Financial Modeling and Valuation Course

Duration: 70 hours

Mode: Online Live Classes

Syllabus: 

• Excel
• Basic business model
• Financial statements
• Valuation
• Financial model and data
• Modeling
• Project valuation
• Creating a model for NPV and IRR
• Modeling delays
• Circular logic and looping
• Creating EPC schedule
• CAPEX schedule
• P and L
• Asset schedule
• GANTT chart
• Visualization and interactive excel dashboard
• M&A valuation and evaluation

Advantages of doing this course:

– The course will give you complete training in modeling as well as valuation and the skills required in this field

– How to design financial models would be taught to you

– Internship opportunities along with placement assistance are provided to each and every student

Email: [email protected]

You may like to read: Top Financial Modeling Courses in India

4. Henry Harvin

Henry Harvin is yet another prominent online educational institution providing a huge number of courses from different fields. Their courses are well-structured and organized with a proper timeline given for the duration. The practical aspect most prominent in their courses plays a vital role in the success of their course delivery.

Course: Financial Modeling Training

Duration: 40 hours

Mode: Live Virtual Class

Fees: INR 29,500

Syllabus:

• MS Excel tips
• Financial statement and ratio analysis
• Corporate finance
• Financial management
• Project finance modeling
• Equity research
• Financial report writing
• Case study 1
• Case study 2
• Soft skills
• Resume writing

Advantages of doing this course:

– Theoretical and conceptual knowledge is backed by practical skill-based training

– Guaranteed placement assistance is provided to every student

– Regular assignments and projects are given to you to test your skills and understanding

– Soft skills training would be provided to you so that you land in an interview as a confident and knowledgable individual

Email: [email protected]

Phone: +91 9891953953

Frequently Asked Questions

Q1. How can I be a certified financial modeler?

You can become a certified financial modeler only by doing a skill-specific course in financial modeling. The certificate you will receive after completing the course would make you a certified FM. Most companies prefer their employees especially the freshers to be certified in the field they are about to join. This certificate gives them knowledge about your practical skills. 

Q2. Can I do this course while studying at some other institution?

Yes. Being a professional course, this type of a course can be done while you are pursuing a job or any other studies.  You might be a student in some other college or university and can still do this course. Based on your availability and time schedule you can choose an online mode or a classroom mode of education.

Since many of the office-goers and students go for their regular work in the morning, the timing of the financial modeling courses is kept flexible. Along with weekdays, you have weekend classes which you can choose if necessary.

Q3. What is the scope of being a certified financial modeler?

As a certified financial modeler, your chances of getting hired by an organization are much higher than anyone else with no such certification. This type of certificate is of utmost importance in the professional world. Earlier this type of a course was not that needed because of less competition. But today the competition is very high while the number of jobs is limited. 

In such situations, this type of certificate comes to your rescue. The skills and applications you will learn during this course will help you to stand out among a group of freshers. Financial modeling clears and gives you a better conceptual knowledge base, which you utilize to gain high efficiency in your practical work.

Q4. Are this type of a course a long-term course?

No. A financial modeling course is a short-term course with a duration of 1 week to 4 months based on the institution. Being skill-based courses, the time duration of these courses is kept small so that you don’t have to go on dragging the course. Once you complete the course and receive your certificate, you can immediately apply and join a job.

Q5. Is being a certified financial modeler a good profession in India?

Yes. India is one of the fastest and most important markets in the world. Being a developing nation, there are constant changes that occur here. In such a country, the role of a financial modeler becomes extremely important. A financial modeler as an employee is needed in every possible field. If you are a certified financial modeler, then your chances of success are high. Being a critical and important role, being a certified financial modeler in India is an extremely good and important profession in India.

Conclusion

If you want to be a financial modeler and achieve success in this field, you should do a certificate course on it. While your experience in your job would teach you a lot of things later, a course would impart that knowledge and skills right away,

If you want to be known as a certified financial modeler, enroll in this course available in India from various institutes at highly affordable rates. While I will take your leave now, you can just check the details of the course and the institute you are about to join!