Financial modeling is one of the most sought after skills in the industry
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Investopedia probably gives us the most easily understood definition of financial modelling. At its most basic, it is the process of creating a summary of a company’s expenses and earnings in the form of a spreadsheet that can be used to calculate the impact of a future event or decision. When and how it is used varies depending on the industry, the organization and even the individual user. What cannot be refuted though is that by learning some of the intricacies of Excel, not only will you be able to garner answers and insights quickly, but you may well be able to advance your career.
Financial models come in a variety of categories. Whether you are assessing a large infrastructure project for viability, determining the price that can or should be charged for a product, forecasting the financial position of a company, or creating financial reports such as income statements or balance sheets (as well as so many other applications), Excel can help you create a model to extract the information you need. Used by bankers, mortgage brokers, money managers, accountants, and just about anybody in the financial business (even JPMorgan’s new CFO is described as a pensive Excel expert), this medium is invaluable. And knowing how to navigate a spreadsheet is an ace-in-the-hole. Excel is most often used by organizations as it is the most flexible and customizable tool available.
