Is Financial Modeling a Good Career Option?
As a professional training institute, we often get this question from people, Is Financial Modeling a Good Career? Our response is a resounding yes. It is a good job option in the current vying job market in the Financial sector. Here you will find out why it is so. The financial world is developing every day, and one ought to get used to the changing scene. Since the course discusses great subjects, like financial analysis, M&A, valuation, macro in excel, and pivot table, you can get plenty of job opportunities after finishing the course.
What is Financial Modeling?
Before answering the question, Is Financial Modeling a Good Career, we should first try to understand what financial modeling is. In simple words, Financial Modeling is the method of making a detailed summary of the expenditures and revenues of a firm in a spreadsheet format. It intends to assist financial managers in making more profitable decisions for the future.
It provides a complete overview of the expense and revenues of a firm. It also provides sources where the business spent most of its resources and where it got its profits. Financial Analysts then use the reports and final observations for different purposes. These purposes can include evaluating the firm’s stock performance and its effect on the future or making decisions about financial management.
What is a Financial Model?
To answer the question, Is financial modeling a good career, we should explain the financial model. Briefly, we can explain financial models as mathematical models, where variables are connected. These linked variables represent a simplified interpretation of the performance of a financial asset or portfolio of a company, project, or different investments.
For refined models like Discounted Cash Flow (DCF) model, you require a computer. Microsoft Excel knowledge is a must to create or update financial models. We have computer programs built for complex and sophisticated financial models like Value-at-Risk(VAR) models employed in risk management.
Get ready for a racy career ahead with this financial modeling skillset under your belt. Learn from our expert faculty. Check out IIM Skills’ Incredible Financial Modeling Course.
Is Financial Modeling a Good Career:
Financial modeling is a great career, particularly in the continually developing corporate world, because the specialists involved use excel modeling skills, which have become increasingly in need. Many businesses consider having strong excel skills beneficial in commercial banking jobs. Hence, they strive to hire people who can manage raw data to come up with suggestions and insights to be employed by the company.
When you decide to pursue a financial modeling job, it is unlikely that you will be jobless. Financial modeling offers a variety of career options you can choose. These options include equity research, corporate development, investment banking, and financial planning and analysis, some of the first financial modeling jobs.
Likewise, Master’s in Business Administration (MBA) scholars and graduates are encouraged to take systematic training in financial modeling. It will improve the development of your career instantly since it plays a vital role in long-term business planning. If you want consistent results monthly, go for a financial modeling job.
Is Financial Modeling A Good Career: Financial Modeling Scope
The scope of financial modeling is growing by the day as more and more companies rely on good structured Financial Models to predict the economic future of companies. It is not required to have a degree to get a job in financial modeling.
You can get qualified by opting for a financial modeling program that will provide you with a comprehensive knowledge of the market and how Financial Models function. Opting for a financial modeling program is beneficial. It lets you stand out from the competition by providing relevant and detailed information about the industry.
The services in Financial modeling are data-oriented and help businesses effectively interpret and make sense of data guiding to more effective decision making. Financial modeling experts have several opportunities, and research firms, credit rating agencies, banks & financial institutions, and insurance firms employ them. Given the influential role of data in the contemporary business landscape, most businesses have job openings for financial modeling experts.
If you are already in the Financial sector or connected segment, mastering financial modeling will add to your skill sets and upgrade your career prospects. Employers like to hire people who own financial modeling skills over those who don’t have the same, considering the growing demand for financial modeling professionals. Financial modeling skill is essential if you plan to start a career in any of the following sectors:
- Investment banking
- Equity research
- Corporate finance
- Real estate
- Commercial banking
- Venture capital, etc.
Is Financial Modeling a Good Career? Job Opportunities After the Course
The Financial modeling course program has evolved to be the standard for all finance jobs. In this blog, we have written about several job options for you. Scroll down to read on:
Below you will find some typical Financial Modeling Jobs in India.
Since investment has evolved into a substantial part of contemporary life, you can seek your career as a professional analyst in the investment banking field. Also, the salary for these Financial Modeling Jobs is higher than prevalent financial career opportunities.
Further, this job position allows you to create complex Excel models to help large public organizations, governments, and private companies. This Financial Modeling Job facilitates the utilization of Excel models for valuing businesses for advisory mandates and Mergers & Acquisitions.
Equity Research Analyst:
If you search the job openings for Financial Modeling, you will surely catch the job of equity research and analyst. It is a challenging career choice because the job position demands the candidate to design financial models for businesses. Equity research analysts function for both buy-side and sell-side businesses in the securities industry, creating research reports, recommendations, and projections surrounding corporations and stocks.
In a buy-side business—such as a wealth management company, a hedge fund, or a pension fund—an equity research analyst generally supplies data and recommendations to the company’s investment managers. They then manage client investment portfolios and decide which securities to own.
In a sell-side business, such as a bank or a brokerage, an equity research analyst generally produces recommendations and reports for the company’s sales agents. The agents then use the data to sell investments to their customers and the general public.
Real Estate Financial Modeling:
As a real estate developer, it will be your assignment to create detailed financial models that decide how profitable the real-estate project is. In real estate financial modeling (REFM), you study a property from the viewpoint of a Debt Investor (lender) or Equity Investor (owner).
You then decide whether or not the Equity or Debt Investor should invest in it, based on the risks and possible returns. The most crucial thing you ought to understand is that you should comprehend real estate statement models, both as a senior and junior real estate developer.
Financial Planning and Analysis:
Financial planning and analysis is a Financial Modeling job for freshers that presents an escalating demand these days. We all understand that every operating business has a division called FP&A. Financial planning and analysis (FP&A) comprise four activities that help the financial health of an organization: integrated financial planning, planning and budgeting, forecasting and modeling, and management and performance reporting.
The function of financial planning and analysis (FP&A) expert is to deliver precise, timely financial analysis and guidance to the heads of the organization. It is one of the few highly ambitious Financial Modeling Jobs where a candidate enjoys an opportunity to help an organization grow by evaluating its performance.
Corporate finance concerns activities and transactions about raising capital to build, develop and acquire a firm. It is directly related to business decisions that have a financial or monetary effect. You can consider it a liaison between the organization and the capital market.
The Corporate Finance team usually aids large companies by executing acquisitions, mergers, and capital raises. The Corporate Finance team gets guidance from investment bankers on transactions like M&A, divestments, restructuring, asset purchase, and project finance.
Financial Modeling Jobs include functioning as a Credit Analyst in credit rating agencies, reorganizing the department of a firm, and setting where liquidity, credibility, and debt service come into view. They study investments and borrowers’ creditworthiness to decide their possible risks for lenders and investors.
Credit analysts analyze financial statements and utilize ratios when researching the monetary history of a possible borrower. The role can be rewarding and prepare you to be a specialized credit analyst in a distinct industry or domain.
Often Financial Modeling Job Description advertises a job opportunity for financial analysts and managers. A financial analyst is a generic word that does not have any exact application or domain. Financial analysts operate in banks, insurance companies, pension funds, and other businesses. Financial analysts guide companies and individuals in decisions about spending money to earn a profit. They evaluate the performance of different types of investments like stocks and bonds.
Financial Projections for Startups:
All entrepreneurs who hold a startup have to make projections or startup financial models of how their company will act in the future. Cash flow valuation, in this matter, will be the assignment of the CFO, the founder of the firm, or the individual in charge of the finance section. You can also utilize a financial projections template to help you calculate startup expenses, payroll costs, balance sheets, cash flow, and more.
Is Financial Modeling A Good Career: Who Should Study Financial Modeling?
Financial Modeling could be helpful, and the majority of the people can explore it. Anybody who desires to explore the world of finance and who wishes to be involved in money-related decision-making can choose to undertake a financial modeling study.
The Following Groups of People Will Benefit From the Studies:
- Business planners
- Strategy Decision Makers
- Managers working with Banks
- Equity Researchers
- Project Managers
- Research Analysts
- Investment Banking people
- Portfolio Managers
- Commercial Bankers
- Risk Managers
- Those pursuing CA (Chartered Accountant)
- Those pursuing MBA (Masters of Business Administration)
- Those studying CFA (Chartered Financial Analyst)
- Those doing FRM (Financial Risk Manager)
- Commerce Graduates.
- Candidates have a Degree or Diploma in technical fields and want to make a career in finance.
Also read: Top 5 Financial Modeling Courses in Pune
Is Financial Modeling a Good Career: Financial Modeling Skills
Financial modeling careers can include data analyst, Financial Model analyst, and financial analyst. When you apply for job vacancies, it can be crucial to have job-related skills on a resume besides education and experience account. Knowing what skills you might have and how to showcase them on a resume can assist you in making one that hiring managers and recruiters notice. The following are the most beneficial financial modeling skills you can incorporate into your resume.
- Advanced Excel skills
- Accounting skills
- Knowing how to create a forecast
- Making and delivering a presentation.
- Attention to detail
- The capability to process massive amounts of data and deliver them in a very refined format
- The capacity to think about high-level techniques
Also read: Top 10 Financial Modeling Courses in Mumbai
What is Financial Modeling Course?
Finance Modeling courses teach how to manage an organization’s financial situation, develop budget goals, recognize business opportunities to raise profits, and enhance financial strategies to lower operating costs.
A wide array of Financial Modeling programs, short-term certifications, or diploma Courses to full-time degrees is available in India. Famous UG Financial Modeling Course programs that students can pursue include BBA in Financial Markets, BBA Integrated Course, and BCom (Hons) in Finance Modeling.
Also read: A Practical Guide to Financial Modeling Course
Is Financial Modeling A Good Career: What Are The Advantages Of Taking Financial Modeling Certifications?
Some of the Reasons Why You Ought to Go for a Certification Program in Financial Modeling Are:
- To develop industry-standard skills that are globally relevant and applicable across different industries.
- To acquire one of the most profitable skills in the finance industry
- To get to comprehend the different techniques and tools used in the field.
- To get prepared with skills to build your quantitative financial models
- To understand effective ways of operating on spreadsheets and predicting data
- To boost your decision-making abilities
- To recognize the critical factors and components of extensive data
- To enhance analytical and quantitative skills
- To boost the chances of getting a job with impressive bonuses.
- To become a certified candidate for job openings
Top online Financial Modeling Courses in India
1. IIM SKILLS
IIM SKILLS is a leading provider of skill development training globally. The institute delivers extensive course programs and training programs in some of the most significant domains. The career-oriented programs here extend from 4 weeks to 12 weeks and meet the needs of professionals, students, new job seekers, homemakers, and work-from-home professionals.
These professional courses have a combination of theory and practicals. The job-oriented programs at IIM Skills are industry-relevant. A thorough study has resulted in the curriculum for these course programs to assist students in upskilling with the best education possible. The institute provides one of the best financial modeling courses in India, whose course details are as follows:
Course Name: Financial Modeling Course:
Duration: 3-4 months
|Module 1 – Basic and Advanced Excel (8-10 hours)|
Module 2 – Accounting Concepts and Financial Statements (5-7 hours)
|Module 3 – Ratio/KPI Analysis (4-6 hours)|
Module 4 – Basics of Financial Modeling (4 hours)
|Module 5 – Different Types of Financial Models (12-15 hours)||• LBO Model|
• M&A Model
• Private Equity Return Model
• 13 Week Cash Flow Model
|Module 6 – Business Valuation (7-9 hours)||• Relative Valuation – Trading and Transaction Comps|
• DCF Valuation
• NAV Approach for Valuation
The Financial Modeling Course comprises practical assignments, hands-on learning, a dedicated placement cell, and preparation for job interviews. Experienced professionals lead the tool-based experiential learning course through live classes and recordings.
The course program awards a learner with a globally accredited certification by IIM Skills. It also offers lifetime access to resource materials and recordings in a regularly updated Learning Management System.
The course program introduces a student to sophisticated tools used in the industry like advanced Excel and PowerPoint. The course program is beneficial for graduates and students of CA, CFA, FRM, MBA, finance professionals, and those who do technical studies like B.Tech and Engineering.
Professional Courses from IIM SKILLS
- Digital Marketing Course
- SEO Course
- Technical Writing Course
- GST Course
- Content Writing Course
- Business Accounting And Taxation Course
- CAT Coaching
- Investment Banking Course
2. IMS Proschool:
The Financial Modeling course by IMS Proschool concentrates on building skills in financial statement analysis, project finance, excel, and equity modeling. The institute provides the program employing a case study-based method, guaranteeing students are job-ready from day one.
Proschool’s Financial Modeling course enables you to brush up on the finance and accounting concepts by utilizing Level 1 of the CFA curriculum. It also provides additional coaching and certification on VBA-Macros and Merger and Acquisition (M&A). The course also prepares you for Equity Research, Investment Banking, Project Finance, Credit Research, FP&A, etc.
The Financial Modeling program by EduPristine teaches students to build Financial Models that organizations use for tracking the business’s performance, risk analysis, forecasting, budgeting, evaluation, etc. Students will learn to create uncomplicated and complex financial models with Excel. Thorough preparation with case studies will help candidates comprehend the applicability of the concepts.
EduPristine prepared the course in collaboration with the BSE Institute Ltd. Training by subject matter experts, Dedicated discussion forums, Frequent job updates, Interview skills workshops, resume preparation assistance, and Placement assistance are some significant features of the course program.
4. Henry Harvin:
Henry Harvin’s Finance Academy is a well-known institute for delivering professional skills through a practical learning system. The Academy’s Financial Modeling course is a 40-hour course that incorporates online interactive sessions with hands-on projects for practical training.
The institute offers internship assistance that allows students to obtain practical exposure to the work environment. The course program includes free placement assistance for a year after finishing the course. The students also get recognized as certified financial modeling professionals.
The institute conducts regular boot camps to revise your skills. E-access to numerous tools, video material, assignments, techniques, soft skill training, hackathons, and competitions are other prominent features of the course program.
Frequently Asked Questions:
Q1. Is financial modeling a good career?
Financial modeling skill has high demand in current scenarios where businesses depend on data science to make Financial Models and forecast future trends. It has a lot of scope in various finance and related segment and is very distinct from the traditional accounting and audit jobs. All career opportunities open after the Financial Modeling course are majorly in finance. A candidate can begin a role in industries such as government, equity research companies, Private Finance Companies, non-profit organizations, etc.
Q2. Are a Financial Modeling and Valuation Analyst (FMVA) certification worth it?
Even if you already have a financial analyst job, earning an FMVA certification may boost your confidence within your workplace. The certification introduces advanced knowledge and skills that let professionals tangibly apply complex financial theory. This knowledge may prepare you to take on new projects or provide innovative solutions. Adding an FMVA certificate to your CV may also improve your appeal to employers, providing you with boosted confidence while interviewing for positions.
Q3. What do financial models do?
Financial models are employed to calculate the valuation of a business or to compare companies to their competitors in the industry. They also are utilized in strategic planning to try various scenarios, calculate the expense of new projects, determine budgets, and assign corporate resources.
Q4. What are the benefits of Financial Modeling?
Several institutions rely on financial models for effectual decision-making. The benefit of Financial Modeling tools and techniques is rising, considering its overall advantages. The following are some benefits of Financial Modeling:
- Enhanced and detailed knowledge of a Business
- Regular review of the performance
- Choose the fund requirement and strategy
- Business valuation
- Risk minimization
- Financial Models yield quick outputs
- Much precise financial budgets and forecasts
- Helps in the growth of business
Concluding Thoughts on Is Financial Modeling a Good Career
Hopefully, the article answered the question, Is Financial Modeling a Good Career? We hope it has helped you understand the rising opportunities for financial modeling jobs in India. If you can handle sheets and classify models, you can follow a career as a financial analyst in several institutions.
A career opportunity in financial modeling allows an individual to help the company to develop rapidly. Our financial modeling course program also improves the ability of an individual to study financial statements. It will make you a challenging candidate for these job positions. So wait for no further to upskill yourself and seize the next opportunity. Happy learning.