Full 3-way Financial Modelling using Dynamic Arrays
Best practice financial modelling in Excel has always been to enter your formulas in blocks. Enter a formula, then copy this across and possibly down also, making sure you have your absolute and relative references set correctly.
This is very useful because it is faster to build a model, easier to enter lots of formulas, less error-prone and easier to audit, all very desirable things when you’re constructing a financial model! Excel’s dynamic array functions take this concept to a whole new level because they automatically copy themselves. The dynamic array functionality has improved recently & now, with a bit of thought & planning, it can be applied to building a full financial model.
One of the cornerstone skills for a financial modeller is Excel proficiency, but what really defines advanced Excel skills? When asked to rate their own Excel skills, users will typically over-rate or under-rate their own prowess with terrifying inaccuracy. Compared to colleagues you might be considered the go-to person, but in a different environment, you might be just average. So how can you accurately describe your skills on your CV or assess those of a potential new hire? 
What’s the difference between a fractional, virtual or outsourced CFO? How much strategic planning, forecasting and financial modelling do they actually do, or are they just glorified bookkeepers over-charging at CFO rates? A good CFO will build forward-looking financial models to help businesses make better decisions but an external consultant marketing themselves as a fractional, virtual or outsourced CFO can simply manage day to day cashflow, month end and process payroll, receivables and payables, so misrepresenting and devaluing the role of the CFO. 
Excel is a versatile piece of software and the techniques used to build financial models can also be applied to solve other problems using Excel. Many modellers compete in various competitions which explore the use of Excel for recreational problem solving where we can often develop or pick up new techniques and methods that prove useful in traditional modelling situations. 
The best way to get people to pay attention to your models and reports is to present them professionally by changing the standard Microsoft settings and applying tasteful colours, borders and fonts. Formatting, however, is notoriously time consuming and it’s sometimes overlooked by the busy modeller. In this virtual meetup, we look at some quick and easy ways to use standard Excel for Microsoft 365 features to make your models look fabulous! 
You’re invited to join the Sydney CPA Discussion Group for a Hybrid Event:
If you’ve ever wondered what a financial modelling consultant does, watch this pilot video for the new series by “What’s that Job?” Designed to help school leavers find out more about different professions, we discuss what a typical day looks like, preconceived notions about financial modelling and other aspects of the modelling life. We discuss:
