I was pleased to be invited to speak again this year at the ModelOff Sydney Global Training Camp (GTC) held at the Microsoft Offices last week. It was, as always a great learning and networking event and I thoroughly enjoyed spending a solid two days surrounded by others who also get very excited about financial modelling!
As well as hosting the GTC, the team at ModelOff have done some great things over the past few years to advance the standing of financial modelling as a discipline in its own right. The ModelOff Financial Modelling World Championships are held every year and registrations are now open for the online Round 1 on 23rd September. If you fancy yourself a modelling whiz kid and want to gain some bragging rights at work, why not test your skills against the world’s best and see how they stack up? The results are not published and only the names of the finalists are made public so there’s no harm in giving it a go!
In addition to the championships, ModelOff has now partnered with The Marquee Group and formed the Financial Modeling Institute (FMI) to launch a new financial modelling certification. I’m proud to announce that Plum Solutions is one of the first approved training providers. The certification is at three levels and first exam will be held on 21st October, and again in May and we have launched providing a Level 1 FMI Advanced Financial Modeler Exam Preparation course available in Melbourne and Sydney. This course is available as public workshop or in-house at your organisation.
What does the FMI do?
- Advances the financial modelling profession by delivering and administering the Financial Modelling Certifications and supports high quality education and training for financial professionals
What is the Level I: Advanced Financial Modeler (AFM) exam?
- The Advanced Financial Modeler (AFM) is the first of three certification levels offered by the FMI
- This exam forms the foundation for subsequent certification levels and focuses on the skills required to design and build integrated financial models
Why earn the AFM certification?
- Skill Validation: Demonstrate advanced financial modelling proficiency to yourself and employers
- Personal Development: Invest in yourself by earning certifications that are challenging and revered by the industry
- Career Flexibility: Obtain a skillset that is globally relevant and respected across multiple lines of business
What is the exam format and how should I study?
- 4-hour exam held at global testing centres
- The next exam date is October 21, 2017
- All exams are in English
- You will be required to bring a valid piece of government-issued photo identification to the testing centre on exam day (e.g. passport or driver license)
Find out more about the certification
Find out more about Plum Solutions’ Exam Prep Training
I’m often asked what degree of skill level one needs to be able to include financial modelling as a skill on your resume or LinkedIn profile. Once you’ve got an idea of exactly what is financial modelling, what is involved in the modelling process and you feel like you’ve got a good knowledge of financial modelling skills that you have used in the workplace then – yes – “Financial modelling” definitely needs to go on your resume and on LinkedIn. (Hint: no one can endorse you for a skill unless you list it on your profile, so be sure to keep your skills listing up to date).
Since the economic crisis in 2008, emphasis on financial modelling has increased and in response, we have seen a rise in job descriptions specifying financial modelling as a core deliverable. If you’re applying for a job in finance then employers will no doubt look favourably upon this skill, as long as it rings true with the rest of your resume. It’s important that you can embellish the tasks in previous roles with examples of what kinds of models you built.
There are lots of well-respected vocational short financial modelling courses that are available, however, what prospective employers really want to see is the application of financial modelling techniques in your everyday work.
Just reading a book or going on a financial modelling training course (even one of mine) doesn’t mean you can add “financial modelling” to your resume or LinkedIn profile! You need to have actually used your modelling skills in the real-world environment. Think about situations in past jobs where you have used Excel to create a model. Take every opportunity to use models in your work. If you’re not in work then find example models online, take them apart and see how you can improve them.
As with any information included on your resume, you must always be able to back up everything listed. If you have had some experience using a financial model in a previous role, by all means, include it in your resume – but don’t exaggerate because you may well be asked in the interview to back up and discuss in great detail the intricacies of how you created a particular model. Your resume should showcase your work history in the most favourable light but be realistic and able to back up your claims with real life examples – interviewers will not appreciate vague or cursory answers.
The majority of job descriptions incorporating financial modelling in the core skills of an available role are those in the economics, accounting, finance and project management spheres. For these types of jobs, it may be a more generic level of experience that they are looking for. If you can understand how an Excel spreadsheet works and the principles of control, you may not want to include the term ‘financial modeller’ in your core skills. However, phrases such as “Ability to apply strong financial controls” or “Strong analysis skills, allowing a flexible approach to decision making” can display the desired capabilities.
At the very least, the interviewer would be looking not only for the basic Excel skills but also the ability to calculate scenarios, present data as well as use advanced formulas. Also be aware: it is common for candidates to be tested in their skills within the interview process. Some self-development in these areas ahead of a career change can really help. If you have your heart set on a role which requires financial modelling experience, there is a wealth of information, courses and training that can support you. They can include advanced Excel and programming skills, as well as how to analyse financial reports and the more technical, industry-specific tools and techniques.
Experience in the field is also invaluable, of course. There are numerous voluntary opportunities where you could practice these skills and deliver a benefit while looking to get your foot on the ladder. Alongside this, self-study can support you in making this career change. Just be careful not to get carried away when including the self-study on your resume; and back up your claims with specific examples of work you have completed. Good luck!
There are all sorts of complicated definitions of financial modelling, and in my experience there is quite a bit of confusion around what a financial model is exactly.
A financial model is a structure (usually built in Excel) to solve real world financial problems mathematically, containing dynamic and flexible inputs and outputs.
Danielle Stein Fairhurst was recently interviewed on a live webinar with The Outperformer, a career management platform on the topic of “Adding Financial Modelling to your Tool kit – a Must for any Accountant“. Financial modelling is now one of the most sought-after skills in the accounting job market but there’s a lot more to being a good financial modeller than just having good Excel skills.
Building valuation models requires a specialized knowledge of valuation theory (using the different techniques of valuing an asset), as well as modeling skills. If you’re a casual financial modeler, you probably won’t be required to create from scratch a fully functioning valuation model. But you should at least have an idea of what types of valuation financial models are out there.
Now that my new book “Financial Modeling in Excel for Dummies” is finally available, a lot of people have been asking me about the writing process and how it all came about. I think what they want to know but are too polite to ask is “what on earth were you thinking?” and I must admit that I asked tha
The Excel files used in this book can be downloaded here.
Financial Modeling in Excel For Dummies is now available on Amazon! Here’s what Amazon have to say about the book:
It’s no secret that financial modelling is an industry that lacks gender diversity and that is particularly shown in the ModelOff Financial Modelling World in which very few women make it to the finals.
I am just completing the final edits of my new book, Financial Modeling in Excel for Dummies and one of the finishing touches is to make sure we have the spelling right!