Earlier this year, I asked members of the Financial Modelling Group for their best tips for reducing financial model file size and got some fantastic tips. I’ve edited my original list of personal favourites to include some of the best tips and tricks and credited the authors below:
If you’re planning to pursue a career in financial modelling, there is no shortage of free resources to help you improve your financial modelling skills.
There are also hundreds of financial modelling training courses to choose from; most will give you a certificate of attendance, and an opportunity to claim Continuing Professional Development (CPD) points from your professional body.
Some will even give you a Certificate of Completion (note the capital C!)
Excel is the backbone to any custom built financial model, and one of the core attributes of a financial modeller is to have good technical Excel skills. When struggling with their financial models, some managers’ first reaction is to send their staff on an advanced Excel course to improve their modelling skills. However, with training budgets under constant scrutiny you really need to make sure that you get the best value out of your training options.
Written by Danielle Stein Fairhurst and Lance Rubin
This article first appeared as part of the Financial Modelling Knowledge Hub
It’s never been more important to have a well built, flexible and robust financial model to use to predict outcomes and it’s at times like these a financial model really proves its worth. With a global pandemic unfolding and the situation changing daily, having a model that can you can quickly and easily update as the situation requires, is going to make it so much easier to make the quick decisions that are going to be necessary in the coming weeks or months.
Danielle Stein Fairhurst graduated from Griffith University with a Bachelor of International Business Relations. Since then, she has completed a Diploma of Accounting and Finance from ACCA in London and an MBA at Macquarie University and now runs Plum Solutions, a consultancy specialising in financial modelling and analysis. She is the author of two books and travels regularly to deliver specialised training courses and consulting services. Griffith University visited Danielle at her home in Sydney to find out more about how her first degree contributed to her career path.
Congratulations to Alvin Woon, the new 2017 ModelOff Financial Modelling World Champion! Every year, 16 ModelOff finalists are flown to compete at the Microsoft headquarters in New York or London. Yet again, not one female made it to the finals and when the organisers posted an image of 16 finalists of varying age, ethnicity and background – but all male – it predictably sparked a storm of online criticism.
The first couple of years ModelOff had at least one female finalist and in 2013 Hilary Smart won it but that victory was short-lived because the last two years running we’ve had male finalists only. My view is that the ModelOff attracts men who thrive on competition whereas women don’t feel the need to prove themselves. Even if we can explain the result, it doesn’t help. It’s an embarrassment to our industry that we can’t provide at least a few female modellers – I know there are plenty of us out there! My financial modelling training courses are always at least 50/50. Personally, I’ve never competed because I no longer model the long hours I used to and although I’m an industry expert, I don’t think I’d make the finals and I don’t need to put myself through it. Do all female modellers feel that way?
The finalists are “chosen” by two anonymous online rounds so the selection panel doesn’t see race, age or gender when assessing the scores. It’s entirely skills-based so there’s no way that bias can come into it – the problem is that women simply don’t enter the competition. Finding female speakers on the topic is apparently just as difficult. I was the only female speaker at the Sydney ModelOff GTC for the past two years running and that’s just GOT to change. I know the organisers well; they are keen to address this problem and want to hear from the financial modelling community. I’ll be meeting with them soon to discuss how we can tackle this issue and I’m keen to hear what ideas you’ve got to attract more women!
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
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