Finance is undoubtedly a growing industry, and many students choose to work in it because it may lead to a position with a good salary. There are many well-paying career options available to them, including financial analysts, investment banking, financial advisors, accountants, and equity and other security analysts. However, the majority of them are students who are unsure of which specific area of this industry they want to concentrate on. Others with finance degrees find it challenging to start their careers because their knowledge is outdated.
A course in Financial Modeling may be the answer for them because it is in high demand right now and can potentially upskill the stakeholders who can help them get entry-level jobs. As a result, their persistent endeavors may lead to a lucrative position in this industry for them. Let’s talk about the Financial Modeling course benefits, which could help kickstart your finance career.
Table of Contents
- What exactly is Financial Modeling?
- Importance of Financial Modeling
- Why are Financial Modeling courses gaining momentum lately
- The Financial Modeling course benefits
- No prior knowledge is needed.
- Boost your profile and career opportunities
- The best way to gain insight and land an entry-level job
- Benefits for start-ups
- Aid in company expansion
- Aid in a better understanding of business.
- There are benefits to analyzing the potential value of your company and lowering risk.
- This aids in taking critical decisions regarding budget strategy and cash flow statements.
What is Financial Modeling?
Financial Modeling, to put it simply, is the process of developing financial models to analyze a company’s profit and loss while taking a close look at expenses and revenues on an excel spreadsheet to ascertain its future position.
The Importance of a Financial Modeling Course
In today’s world of expanding business start-ups, every company, even a small company, wants its prospects, valuation, and statements secured. Thus, the need for financial modelers would increase tremendously. Financial modelers currently make an estimated 7,82,161 rupees per year on average in the country, but after they gain expertise, they may make more than 15 lakhs per year. A suitable institutional Financial Modeling course is a good place to start if you want to advance in this field.
Why are Financial Modeling Courses Gaining So Much Momentum Lately?
Based on the above information, we can conclude at this point that the Financial Modeling course benefits are multiple. Since they are a niche skill-set, Financial Modeling has become a must-have skill for any Finance Professional.
- Corporate Finance: Companies utilize Financial Modeling to forecast future performance and set targets as well as allocate corporate resources for action expansion, mergers, acquisitions, and so forth.
- Investment Banking: It is used to project company performance and helps them make better pitches to acquire or get acquired.
- Corporate Banks: They estimate the future performance of a company and make lending decisions.
- Research Teams: They estimate target prices for shares of a publicly listed company and form opinions on the company’s stock.
- Private Equity Firms: Assess the risk and return from investments to better assess the company’s growth in various situations.
- Credit Rating Agencies: Form their views on companies, forecast their performance, and issue ratings to the company and its debt products.
- Mutual Funds: They better forecast the performance of the individual stocks.
- Project Finance Companies: They forecast the financials of companies under various circumstances to meet client requirements.
- Venture Capital Firms: They assess the risk and return from their investments to assess the company’s growth under various situations.
- Analysis: Perform analyses for a particular company, unit, or project, including ratio, qualitative, and sensitivity analyses, etc.
Find here the must-read Financial Modeling Books
The Financial Modeling Course Benefits
1. No Prior Knowledge is Needed:
The first from the Financial Modeling course benefits is that it doesn’t require any prior accounting or other knowledge to continue with the course. Thus, it provides an opportunity for freshmen in BCom, BBA, and MBA to enter the finance industry.
The Different Types of Financial Modeling That You Will Learn in Financial Modeling Courses.
- Three-statement Model: The three-statement model serves as the cornerstone for a more intricate model. The income, balance sheet, and cash flow statements are connected by this statement. Finding the company’s overall financial situation is made easier thanks to it.
- The DCF Model: To determine the value of an investment based on cash flows, a discounted cash flow (DCF) is used. The DCF is calculated using a discount rate to derive the present value of the cash flow.
- Model for Mergers and Acquisitions: This model is used when two or more businesses merge with mutual consent. The procedures that must be followed are projection, valuation, pro forma adjustments, and deal accretion.
- The Leveraged Buyout (LBO) Model: This model is used to calculate fair value when the acquiring company has borrowed money to complete the acquisition.
- Credit Rating Modeling: Banks and NBFCs use credit rating modeling when making a loan to a business. They created this model to assess the firm’s worth, credibility, and interest rate.
- Initial Public Offering (IPO) Model: Investment bankers use the IPO model to analyze their clients’ businesses just before they launch them to the general public. They estimate the price at which investors would be prepared to purchase the business.
2. Boost Your Profile and Career Opportunities After Graduation:
A Financial Modeling course benefits you as it makes you more visible to employers and opens up many opportunities. A lot of industries require professional financial modelers, like, for companies:
- Investment Banks
- Credit rating agencies
- Equity research sector
- Mutual fund sectors
- Financial KPOs(knowledge process outsourcing)
- Project finance companies
Roles That Can Be Assigned to You:
- Business analyst,
- Risk analyst,
- Finance analyst,
- Investment analyst,
- An equity research analyst
Many graduates, and even those with advanced degrees, find it difficult to begin their careers in finance, but an engaging Financial Modeling course benefits would undoubtedly help them and give them confidence.
3. The Best Way to Gain Insight and Land an Entry-level Job:
The third benefit of the Financial Modeling course is that your skills will be enhanced because, in the real world, employers are looking for candidates with strong modeling abilities for entry-level positions. Anyone who has completed their 10+2 can enroll in this course, but students with a bachelor’s degree in finance, statistics, computer science, mathematics, or MBA holders will be suitable for it the most.
Top Companies are Currently Hiring for Financial Modeling Jobs:
- Young turtle LLP
- Zetta women
- HCL Technology
- The UN Development Programme (UNDP)
Also Read: Financial Planning and Analysis
4. A Financial Modeling Course is Extremely Beneficial for Start-ups:
The fourth benefit of a Financial Modeling course is that the financial model is pertinent to start-ups or small businesses because it will be an important factor for the success, longevity, and sustainability of an entity. However, most people who are unaware of the value of a financial model see no point in creating one because they consider it to be nothing more than a guess.
Gaining the most insight into the business is made possible by optimal Financial Modeling. This course could be useful for someone who wants to launch a business, or else many start-up leaders are looking for this position.
How Financial Modeling Course will be Beneficial to your Start-up
- Focus on cash inflow and outflow.
- Focus on cost and expenses.
- Focus on making business clear to investors
- Mentions all revenues
- provide for the realistic growth of the company.
A good financial model that explains and predicts your business is necessary for investors if you are planning to launch a new business, so you should have that ready. Some points that investors look at in your financial model before investing in your start-up:
- You must have included monthly data in your model with an easy layout.
- Your model must be able to calculate the exact amount of capital you need.
- Your model must include key drivers and assumptions.
- Your model must be clear, simple, and understandable so investors do not have difficulties with it.
- Make sure your information is consistent so that investors have confidence in it.
- Sources of income should be specified in detail.
- In the early stages, personal expenses are significant, so costs like wages and marketing must be considered.
All of this requires the ability to analyze financial models effectively, so enrolling in top-notch Online Financial Modeling Courses will be beneficial.
5. It will Help to Promote the Expansion of your Company:
Each type of business, no matter its size or stage, aspires to keep growing, and small, medium-sized, and large corporations all profit from their unique types of Financial Modeling. Financial and economic models assist them in securing their expansion and sustainability by reducing uncertainty through risk forecasting.
Some Information on How a Financial Model Aids in Business Growth:
- Ensure the Success of Your Business. A well-designed financial forecast model can help you determine the future viability of your business by identifying the risk the company faces when entering a new market and the liabilities the company has.
- All-inclusive: Previously, Financial Modeling was only available to large corporations, but it has recently become clear that all types of businesses can benefit from it.
- The Forecasting Approach: a financial forecasting model can calculate future performance through the assumption-approach method and determine the validity of business expansion.
- Scenario Testing for Business Prevention: In scenario testing, scenarios are created based on future events to ascertain their impact on business. By doing this, it is possible to avoid many business failures. For instance, during the COVID era, many companies failed because they lacked precise future assumptions.
6. It Will Help You to Have a Fundamental Understanding of Business
The sixth benefit of a good Financial Modeling course is that it will assist you in creating an effective model because only an effective model will enable you to understand your business. Internal and external factors are taken into account before making a decision.
At the same intervals, a periodic review is conducted, scenarios are built, past performance is analyzed, and all of this aids a financial modeler’s understanding of business and quick decisions are taken. In conclusion, it helps the parties involved come to a decision quickly and effectively, giving the entity an advantage over rivals in the market.
7. Help You in Analysing the Potential Value of Your Company and Lower the Risk
When you need to raise money for an expansion or change in ownership, sell shares to a third party, or when you need funds, business valuation becomes crucial. The financial model course benefits you to determine the value of your business and assess how it stacks up against those of other competitors in your industry by using the DCF (discounted cash flow) model.
A three-statement model based on the net present value of the company’s future cash flows serves as the foundation for the DCF model. The DCF model takes the three-statement model’s cash flows, makes the necessary corrections, and then uses Excel’s XNPV function to discount the cash flows back to the present at the company’s weighted average cost of capital (WACC).
Since the financial model serves as a guide when entering a new market or when prices or policies change, it ensures that risk is kept to a minimum.
8. Aid in Taking Critical Decisions Regarding Budget Strategy and Cash Flow Statement:
The next in the Financial Modeling course benefits is that you learn how to create budget models so that you can create budget handling strategies. You can evaluate the cash flow requirements the business would need. Standard practice is to create the budget model using monthly and quarterly figures. In addition, the course aids you in making critical decisions about:
- enhance capital
- purchases of assets or businesses
- investment allocation
- expanding the company’s current sphere of influence
- Value-adding to a business
- Estimating and planning a budget
- Purchasing and selling business units and assets
9. Easily Accessible and Affordable Courses:
Following the COVID outbreak, there has been a dramatic increase in online institutions. Since no institutions offer this course, students have a wide range of options, which leaves them in a pickle. It would be pointless to start a course from a lowly foundation. Selecting a reputable institution is a decision that students must make to benefit from a Financial Modeling course because it will undoubtedly affect their prospects.
The good news is that there are some genuinely valuable institutions offering top-notch programs that are simple to access and affordable. Additionally, the courses are flexible to fit your schedule. Regarding the Financial Modeling course fee structure, it ranges from Rs10,000 to Rs90,000 depending on the facilities and reputation of the top universities.
Advance your career with the best Financial Modeling Courses in India
The Financial Modeling course’s major benefit is certification. Certificates serve as evidence of accomplishment and proficiency. It shows the employer that the applicant has the motivation to set and achieve a goal. An individual with certification inspires greater confidence. It aids in personal growth.
- You gain a competitive advantage because having a recognized certification sets you apart from others, which is crucial in today’s market.
- The establishment of professional credibility is assisted by certification. Both public and private sector organizations favor certified consultants. It would therefore increase your reputation.
- Certification will increase your earning potential and open doors to the corporate ladder.
Q1. Which university offers the best and most affordable Financial Modeling course benefits?
IIM SKILLS, the best learning facility in Asia, needs to be your top priority. In 2015, Vaibhav Kakkar, the founder, established it. They offer a variety of courses, including Financial Modeling as well as content writing, technical writing, cat coaching, finance programs, and digital marketing. It provided the best financial modeling course benefits.
Q2. Who should enroll in a financial Modeling course?
Along with bachelor’s and master’s degree students, 12th-grade students can enroll in these courses.
Q3. What are the best job profiles for Financial Modeling?
- An investment banking analyst
- An equity research analyst
Q4. What is the financial analyst’s salary structure in India?
Depending on experience, employer, skills, location, and other factors, salary structures range from 4 lakhs to 15 lakhs per annum in India.
Q5. Are financial models complicated?
If you decide to learn Financial Modeling on your own, you may find it to be somewhat difficult, but with industry experts, it becomes simpler. It’s beneficial to take a course in Financial Modeling.
From the information, we can conclude that the significance of Financial Modeling courses originates from their capability to enable better financial and strategic decision-making. They help the concerned stakeholders understand the future growth potential of the company. That’s why the number of institutions providing Financial Modeling courses is increasing day by day. However, choosing the right institute for building your career in Financial Modeling is very crucial and you should check the curriculum and student reviews before opting for any institute. These are the benefits that come with enrolling in a top Financial Modeling course. I hope this article explains the Financial Modeling course’s benefits and dispels any remaining doubts. So here we conclude the guide to financial modeling course benefits.