Advice for Advancing My Financial Modelling Skills
I often find myself deeply immersed in a variety of models—financial, operational, and economic—at my workplace, where I’m regarded as the go-to person for anything Excel-related.
While I consider my modelling and analytical skills to be solidly in the adept to advanced range, I’m encountering a bit of a crossroads. I’m confident in my ability to build models from scratch and follow best practices, such as color coding, formatting, and incorporating error checks. However, after seeing the impressive work of some experts, particularly from Big 4 firms, I’m eager to elevate my skills to that expert level.
One area where I struggle is in planning the model development. Sometimes, as I progress through a project, I find myself complicating certain elements unnecessarily or grappling with how to create a more modular design to accommodate unexpected changes.
I have a strong grasp of formulas and vital aspects like timeline construction, sensitivity analysis, and scenario controllers. I continually seek ways to enhance my formulas for better speed and minimized file size, and I feel content with my current proficiency in this area.
I’m reaching out for recommendations on courses or resources that could help me advance to the expert level exemplified by modelling teams at Big 4 firms or specialist boutiques. Additionally, I would appreciate any general advice on practice techniques I could explore in my free time to refine my skills. Thank you!
One response
It sounds like you’re already on a solid path in your modeling journey, and it’s great to hear you’re keen to take it to the next level. Here are some suggestions to help you level up your modeling skills and improve your overall approach:
Courses and Certifications
FMVA (Financial Modeling & Valuation Analyst) Certification by CFI – This course covers a wide range of financial modeling topics, and it can give you a structured framework to work from.
Excel for finance with Wall Street Prep – This program dives into advanced financial modeling techniques used in investment banking and consulting, which may expose you to the best practices of the industry.
Modeling Courses on Udemy or Coursera – Look for recommendations for specific courses related to financial modeling, Excel tips and tricks, or advanced analytical techniques.
LinkedIn Learning Courses – They offer several courses on Excel and financial modeling, focusing on real-world applications.
Books
“Financial Modeling” by Simon Benninga – This book is a comprehensive resource that covers a range of financial modeling techniques in depth.
“Modeling Financial Markets” by Eric Zivot & Jiahui Wang – If you’re interested in a more quantitative approach to financial modeling, this book is excellent for understanding models used in finance.
“Excel Modeling in Economics” by Victor H. Vance – This book can provide insights into best practices for modeling, especially if you’re interested in economic aspects.
Practical Exercises
Build Models from Case Studies – Try to replicate models from case studies or business scenarios, focusing on efficiency and clarity. This practice can help you refine your approach and see how others have structured their work.
Participate in Online Challenges – Websites like ModelOff host competitions that can push you to think critically and creatively about model building.
Review and Revise Your Past Models – Take some of your previous projects and see if you can identify areas of improvement or simplification. This reflection can help reinforce solid practices and make you more aware of common pitfalls.
Planning and Modular Design
Start with Flowcharts – Before diving into Excel, sketch out the model’s structure on paper or using flowchart tools. This can help visualize how all components interact and identify potential issues early.
Establish Clear Assumptions – Dedicate a section of your model for outlining assumptions. This not only aids in clarity but also helps in modularizing your inputs for easy updating.
Structure for Flexibility – Use named ranges and tables to create dynamic models. This approach can simplify your formulas and allow for easier adjustments.
Seeking Feedback
Peer Review: Get your models reviewed by colleagues or mentors who are more experienced. Constructive feedback is invaluable.
Networking: Connect with modeling experts on platforms like LinkedIn or participate in forums to share insights and gain exposure to diverse practices.
General Tips
Learn VBA or Python: If you haven’t already, exploring these programming languages can help automate repetitive tasks and enhance your models with custom functions.
Stay Updated: Follow industry blogs or forums such as the Financial Modeling World Championships or the Excel Guru, as they often share valuable insights and trends in the modeling community.
By integrating these resources and practices, you’ll likely find yourself moving closer to the expert level you aspire to reach. Keep pushing your boundaries, and don’t hesitate to be creative and innovative in your approach! Good luck!