Top 3 Financial Modeling Services in India To Explore
The holistic growth of major industries of a country is a key metric to gain insight into the overall economic health of a country. However, economists of the past couldn’t gauge business health or the quality of decision-making in a systematic and standardized manner that was acceptable for all. Financial Modeling serves that exact purpose today. A netizen business owner might be incredulous about the financial modeling services in India and considering the living standards, he/she is not at fault. Among the laundry list of firms we have sifted through, we have retained only the best for our recommendation
Now before we start with our set of recommendations for the best financial modeling services in India as per our measure, we need to ensure that we are transparent. Our curated list of financial modeling services is not large by any stretch of the imagination. It is a list that falls short when compared to the massive population that inhabits this country. However, we believe that quality reigns supreme over quantity in most scenarios. The advanced age we live in suffers from poor-quality content around every corner.
It is a difficult endeavor to establish reliable and acclaimed services that are desired by businesses. So, when some financial modeling services in India do fill the void of master-crafted finance services it should be appreciated. If the excellence of these financial modeling services in India is displayed, it would be appreciated.
Appreciating, however, requires stacks of prior knowledge about the subject of concern, so financial education is necessary. The internet is bogged down by misinformation and the assertion of myths and generalizations as facts, we’ll tell you about financial modeling. Understanding financial modeling necessitates underscoring the importance of finance and specific areas of finance that align with modeling.
Finance is a profound field with a grandiose scope. Most of us possess vague ideas about finance but ambiguity has never been helpful to anyone looking for a good professional/service. Gaining insight into financial modeling, its direct relations to finance and the various types of models will help you make a suitable decision for your company. You need to also look for services that are teeming with skills of communication, saving you the trouble for visualization freelancers or professionals.
Financial modeling services in India are, much like other financial modeling services, concerned with abstract creations touted as financial models, that are a clear depiction of real-world scenarios; however, we also lend space to the skills required for producing such skills. No one is born with modeling skills. People who learn them and become part of large brands have a traceable journey. What do they learn? Why are models even required? We believe that answering such questions is a duty that we need to fulfil to gain your trust. Given this, let us begin by learning about…
Constructing Financial Models – Finance Principles
Finance often suffers from a dual identity among different groups. It is the black sheep of the herd for some and a house of twigs for others. Though finance is not a topic that can be breached easily, it is a great deal more wide-ranging than other topics. It is a subject that affects the lives of everyone: businesses and residents. Its effects are varying in degree, substantiated by the dominant policy of the times.
The role it plays in an economy, however, is less disputable. Financial modeling services in India are eagerly grabbed by many corporations from within the country and outside it as well. This phenomenon is prevalent and well-known. The reasons for it are harder to put forward with certainty but are circumscribed to the lower general price level and wage in the country. It may also be a targeted objective of the economic policy of the government.
It would explain the liberal market economy structure and other factors at play that hurt the bereaved workers but benefit the ease of doing business. Nonetheless, we will talk about India in a separate section. For the moment, finance is our priority.
Finance is a discipline that manages the flows of currency, assets, and money supply in an economy. It is the backbone of an economy for managing the task of channelling static bank deposits/savings and investments into productive output. It is a field that associates with value judgment in financial terms, works with aspects of public policy and general financial compulsions like repayment of interest, taxation levied on different aspects & levels of business functioning, etc.
Finance also works with accounting to define terms and is key for understanding market positioning. A good handle on the pulse of business markets has beneficial outcomes for the business in the long term. All these tasks that are performed under finance as a discipline can be divided into sections that have a unique basis for categorization. Let us wander into them briefly to understand financial modeling services in India in depth later.
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Areas Of Finance & How They Are Accounted for Under Financial Models
The following are some significant areas that are kept in mind when financial models are constructed:
- Risk and enterprise management are considered inherent as well as natural to businesses all around the globe. However, decisions to reduce the possibility of damages and place funds for the renewal of appropriate finance models is the ultimate goal of risk management. Processes like hedging prices of machinery or goods of intermediate consumption are undertaken. Risks regarding credit opted, market fluctuations and issues of internal operations concerning compensations for hired personnel, insurance for machinery, or disconnection with supply chains are taken into account. Financial modeling services offer patterns and levels of risk exposure on the projected decisions of the company and the implications for the same. Risk reduction practices are also implemented through effective risk management of a business. Diversification of revenue streams is some other effective measure adopted by companies after receiving advice from some financial modeling services in India.
- Public finance comes to mind as a field that adds a significant amount of variability to the financial modeling process. The changes in economic policy made by a government can have serious impacts on the flows of economic value and funds. Taxation, lending regulations & rules, important economic rates & ratios, public debt, and the state of demand as well as supply. Investment and financial investment come under the ambit of economic policy that is at the mercy of public finance decisions. Important decisions regarding money supply, foreign exports, and imports have also dwelled under this category. Financial models depict the prospects of a company’s growth and betterment. They operate on the foundation of certain assumptions that are decided on the perceived economic policy of the government. Radical changes in the policy lead to greater shifting in terms of predictions, hurting the benefits of modeling and costing the business valuable time and resources.
- Personal finance is becoming the talk of the town. Everyone wants to increase their wealth in the shortest period and businesses are profit-making entities. Their purpose is to maximize returns on investment and generate profit as well as value for their shareholders. A financial model focuses on the data at hand, narrowed down by the assumptions that are adopted by a model. Personal finance trends and decisions on the stock market by famous/infamous personalities have tangible results on the financial data recovered by businesses and different sources. This serves as input in financial models and can drastically alter the course of predictions. Discounting unfavorable and favorable shifting through appropriate financial research and discussion is one way in which financial modeling services in India adapt to the dynamic nature of personal finance.
- Investment management is another key area of this field of work. It is a key area of finance for businesses as diversification is chased in both financial investment and productive investment. Financial investment relates to the valuation of bonds, securities, and stocks and the value that can be derived through their sale and purchase in open markets or to a specific seller i.e. a governmental authority. The portfolio management of a business’s stocks is also placed here. Furthermore, investment in production units and expanding business is a heftier affair than a financial investment. Models are designed to predict the value gained over some time in the form of a discounted price that is calculated after the deduction of the cost incurred to facilitate the working of the asset. Investment of this kind is monitored closely due to its magnitude. It can cause ripples for a business and can be an improvement in small efficiencies or grand-scale projects. Regardless they interact in meaningful ways and the returns are subject to calculations of financial models.
- Finally, corporate finance is a direct dealer with financial modeling services in India. The motive behind the extension of business work to outsourced service agencies is cost reduction. Net profits and net working capital are important indicators of business growth. They are considered before trades of equity or stocks by most investors so increasing them is a victory for the firm. This is a double victory as most businesses are looking for professionals with honed skills in finance and data. Financial modeling services in India fit the bill perfectly. Lastly, this type of finance is concerned with two distinct forms of periods: long & short. They are both managed in different ways and are allocated to different managers to ascertain the achievement of important goals.
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What is a Financial Model?
A financial model utilized by corporations galore is a spreadsheet of financial figures & data used to represent a company’s financial condition in the future, present & past periods. It aids businesses in the authentic evaluation of project value. It also applies this data to provide a meaningful framework to increase net profits/net returns to a business by singling out key revenue sources. It also decreases the total cost burden if its recommendations are adopted wholesale by stakeholders. Ultimately, it is a veritable tool for business owners to estimate the value of a project and decide on whether it should be allowed to develop.
A financial model is not a buzzword like a mathematical model so its anonymity to most people is comprehensible. However, this statement prompts a new question. What separates a mathematical model from a financial model? Financial models and mathematical models are based on similar principles and guidelines. Their differences lie in the dynamism of the model results and figures as well as the objective of the models.
Mathematical models form the nexus of evidence to sustain or further policies that have insufficient studies to prove their efficacy. They are by design static in nature and lead to unwavering results in most cases. Antithetically, financial models are dynamic and adjust as an effect of deliberate design. They are created to account for ever-changing figures and show reliable results.
They are simpler in calculation & interpretation than mathematical models. Their purpose in a business is to inform decision-making and show meaningful information; they don’t give results, but rather offer suggestions & valuations on projects and work.
Financial modeling services in India and financial models maximize business efficiency and organization as well. They utilize different kinds of data for different contexts and varying depths of modeling and predictions. Thus, it is only natural that they are differentiated into several types, serving specific requirements.
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Some Key Types of Financial Models Are as Follows:
- 3-Statement Model:
It is a simplistic model that interlinks three important business documents. These three documents, namely the income statement, balance sheet & cash flow statement are key documents for assessing the finances of a business. It is used by most financial services in India that serve medium size businesses. It is a model that covers the assets in physical terms, in terms of money, and also in the form of available cash flows.
- Discounted Cash Flow Model (DCF):
This is the complete opposite of the previous model discussed. It uses intricate formulations and requires discounting expected future returns to normal net present value. The returns are taken in the form of cash flow and the resultant measurement is calculated in the form of a firm’s WACC.
- Initial Public Offering Model of Finance:
This model deals with a business valuation using comparable company analysis i.e. using a similarly structured & poised company that exists in the same industry. It is a model that was used highly by most financial modeling services in India till the recent spike in inflation. This phenomenon was common because of the setup of many unicorns in the Indian financial markets. The comparable analysis undertaken is key to deciphering the value but only in the constraints of the amount that investors are willing to pay.
Some Other Types of Financial Models Used Are as Follows:
- Budgeting Models Using FP&A
- Option Pricing Model Of Finance
- M&A Financial Model
- Leveraged Buyout Financial Model
Best Financial Modeling Services in India
1. Financial Modeling Services by Outsource2india
A modeling service that enhances your business performance by improving data efficiency. They are a service that is a compilation of seasoned veterans in the financial modeling research field with decades of experience. They guarantee an assistant to render financial support wherever necessary. The provision of flexibility in choosing the type of model and its varying engagement models work in the favour of this organization. Moreover, they are not bound by country or location and are willing to serve the customer at minimum billing rates. This service may not look special from its simplistic offerings but be wary of judging a book by its cover.
Their years of experience mingled with their research work in various fields combine to create a concoction worthy of the speciality that your business desires from a modeling firm.
Their pricing begins at 14 USD per hour. They cost minimum wage for their work and offer a complete package of financial modeling services. From goodwill calculations to cost analysis, Outsource2india is a good option for a financial modeling service.
2. Outsource Financial Modeling Service by BackOffice Pro:
This is an incredibly reliable company that works with investment banks, startups, and more, to gain financial models based on prior performance. They assess corporate finance through a quantitative approach which allows them to build specific models for businesses of all industries. They perform modeling using three-statement, DCF model, M&A model, etc. without a hitch. The assurances of conversion of numerical predictions into real-life financial performance are a major selling point of their services. Working with them is sufficient for you to be worthy of receiving valuable income analysis, detailed balance sheets, and cash flow analysis. They also provide room for risk management and allocation of investment funds. They also share some key services on their website. They are outlined below:
- Calculation of important metrics like net present value, revenue requirements, and much more with relative ease
- Extremely skilled at Excel functions including, but not limited to, pivot tables, network days, etc.
- Master at conducting financial research and analysis of current financial conditions/ future conditions. They can deliver the results in the form of graphics or statistics.
- Business financial structure analysis, budgeting strategies, cash flow analysis, interpretation, and other services rendered at little cost
- Keenly evaluates the business value of global portfolios of multinational companies as well as the portfolios of important financial figures. Furthermore, it also deals with big businesses to create meaningful financial models that suit their every need.
These are just some of the skills possessed by BackOffice Pro that set them apart from the competition. They are skilled and talented professionals looking to change the financial model landscape.
3. Financial Modeling Services by FlatWorld Solutions:
Flatworld Solutions, one of the leading financial modeling consulting firms, provides top-tier financial modeling services to corporations worldwide. Decision-makers can efficiently estimate the revenue figures for their companies by translating quantitative and qualitative data with the help of their financial modeling services. Business and corporate finance require specialized knowledge and experience, which no one can just about possess. To meet your specific business demands, the corporate financial workers at Flatworld provide specialized financial modeling services. Delegate finance models to them if you want to see a marked improvement in your bottom line.
They are a sublime group of service providers who follow a transparent process for their modeling services. Their services are available at relatively cheap rates with great speed of delivery for the model required. They are also experts who utilize only the best software while picking out the best type of financial model for your business and they host a plethora of other services that can change the way you view financial models.
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Book a call with our in-house career guidance counselor to understand your prospects as a financial modeler.
FAQs: (Financial Modeling Services in India)
Q1. What is considered to be the basic information required by a financial model to function?
A basic financial model consists of assumptions that are considered complete when financial objectives are also considered while compiling them. Balance sheets, income statements, cash flow statements, business valuations, and key request-specific parameters are the foundational material that is stipulated before beginning the setup of a financial model.
Q2. Which companies utilize financial models?
Financial modeling is a useful tool for developing future value under present pricing. It is valuable for most companies. Financial companies like banks, government authorities, and other companies like oil and gas companies and even some non-profit companies wish to protect their finances using financial models. Technology companies use these models too.
Q3. How do I outline the basic steps of creating a financial model?
To outline something, you must possess clear knowledge about it. The major steps for the creation of financial models are as follows:
- Taking historical values and records into account
- Construct a major financial statement.
- Decide on assumptions of the model.
- Consider the values of sensitivities.
- Build graphs for easy representation of information.
We hope you learned something of value through this financial modeling article and learned a little bit about the value of the financial model and finance as an important field of work for businesses.