With the increasing development in the global economy, it’s always good to be a step ahead of others. And the best way to do so is by learning financial modeling! Since a financial modeling course includes subjects like valuation, M&A, financial analysis, and macro in excel & pivot tables, you can get a career boost in the financial sector. Financial modeling is one of the most coveted corporate skills required to get an edge in the ultra-competitive job market.

Want to know more about financial modeling? Read till the end to learn what financial modeling exactly is, what are its scopes, what career options it offers, and what are the benefits of taking a financial modeling certification course. 

What is Financial Modeling?

Financial modeling refers to an analysis of a company’s expenditures and revenues. The primary aim of this detailed summary is to project the capability of potential earnings of an organization. It is of great help to financial managers when making decisions for the future. This analysis of a company’s performance is done by financial analysts who test various theories in spreadsheet format, commonly known as Financial Models. Fundamentally, Financial Models incorporate variables that represent a simplified interpretation of the performance of a company’s asset, portfolio, project, etc. 

What are the scopes of Financial Modeling?

With more and more companies relying on structured financial models to predict their economic future, there is incredible growth in the scope of financial modeling. To get a job in financial modeling, you don’t essentially require a degree. Instead, you can simply enroll in a financial modeling course to get qualified for a job in this field. Taking up a financial modeling certification program can help you get a comprehensive knowledge of the market and how financial models work. 

Financial modeling services are data-oriented and thus they help businesses like research firms, credit rating agencies, insurance firms, banks, and other financial institutions to make more effective decisions for the future. The influence of data in the modern business landscape is immense, leading to ever-increasing job openings for financial modeling experts.

People pursuing MBA, CA, CFA coaching, or already working in financial sectors know for sure, how financial modeling skills can extensively upgrade career prospects. It’s worth noting that employers prefer professionals mastering financial modeling skills over those who don’t. You should essentially have financial modeling skills if you opt for a career in the following fields:

  • Corporate Finance
  • Real Estate
  • Investment Banking
  • Commercial Banking
  • Equity Research, etc.

Who can benefit from studying Financial Modeling?

A financial modeling program can benefit anyone who wants to be a part of the money-related decision-making positions in the world of finance. Still, people who can benefit the most by enrolling in a financial modeling certification program are:

  • Executives
  • Business Planners
  • Research Analysts
  • Portfolio Managers
  • Investment Banking Professionals
  • Those undertaking CFA coaching
  • Accountants
  • Risk Management Professionals
  • Those pursuing MBA or CA studies
  • B.Com Graduates, etc.

What are the career options offered by Financial Modeling?

A financial modeling program has emerged to be the standard for all finance jobs, offering the following career opportunities:

  • Financial Planning & Analysis Expert: One of the most demanding jobs of late, a financial planning & analysis (FP&A) expert is accountable for delivering precise financial analysis and guidance to the heads of an organization. 
  • Equity Research Analyst: This is a challenging job in the financial modeling field as the analyst works for both buy-side and sell-side businesses in the securities industry. They are responsible for designing financial models, creating research reports, providing recommendations, and projecting surrounding corporations & stocks. 
  • Investment Banking Analyst: Since people in this modern age are more inclined toward financial investments, opting for a career as an investment banking analyst can let you earn substantially higher than any other finance job. The function of an analyst in the investment banking field is to create complex Excel models and utilize them for valuing businesses for advisory mandates and Mergers & Acquisitions. 
  • Real Estate Developer: The primary job role of a real estate developer is to create detailed real estate financial models after studying a property from the viewpoint of a lender (Debt Investor) or an owner (Equity Investor). 

These are not the only career options you may find in the financial modeling sector. There are several others like corporate finance executives, credit analysts, financial analysts, etc.

What are the benefits of learning Financial Modeling?

Undertaking a course on financial modeling can help you:

  • Learn about the tools and techniques required for creating financial models.
  • Develop industry-standard skills that are globally recognized across different industries.
  • Boost a career in the financial sector.
  • Improve analytical and quantitative skills.
  • Develop decision-making capabilities.
  • Learn effective ways of predicting data and operating them on spreadsheets

Final Words
Hope this blog helped you learn what financial modeling is all about. You will find a vast array of financial modeling certification programs online, offering short-term diploma or full-time degree courses. The financial modeling program fees in India may range anything from INR 40,000 to INR 1,00,000 while the average salary of a finance manager being around INR 9,00,000 and beyond.  So, wait no longer to upskill yourself, enroll in a financial modeling course, and get started!

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