Financial Modeling refers to the procedure of generating a spreadsheet that constitutes a synopsis of all the income and expenditures so that the financial performance of a business or a company can be anticipated. The spreadsheet can also be utilized to determine the influence of any decision taken in the future. A financial model could be something contemporary or can merely be revamped by implementing changes to the already available Model. Financial Modeling is indispensable for the smooth financial functioning of a business or a company since it gives us an overview of how a business firm’s economic standing in the upcoming future would be. In this article, we will discuss the finest financial modeling courses in Melbourne.
Say, if an apparel business is about to re-launch a bunch of shirts shortly, how will they ascertain the quantity in which they must be manufactured to procure a profit greater than the last time? Yes, by analyzing the figures from the past and it will certainly be a hassle if the data is incoherent.
In simple words, a financial model is a quantitative model that is inclusive of a combination of numbers that govern a variety of factors like how must risk be managed in an organization or what measures must be put in effect to assist the growth of a business.
What is Financial Modeling Used for?
Financial Modeling is an integral component of any business firm or organization. For finance fanatics, financial modeling is a budding career path. Let us wade through the uses of financial modeling before discussing the financial modeling courses in Melbourne.
- A financial model helps us in the minimization of risk. Having all the data required for analyzing the areas where one could go wrong is immensely providential. To curtail risks, we must formulate a plausible budget. If it’s a new business, one must not rush into gaining profits or one may make blunders that involve securing partnerships with clients who do not have a promising track record or investing money in projects that would not yield worthwhile returns.
- A financial model is beneficial to examine how a company has recently performed in terms of finance. A company’s growth primarily depends on the revenue it brings about, each year and to assess that, a tabulation of all the earnings and expenses is necessary. A financial model can be constructed in Excel.
- Financial models are meticulously constructed to figure out a company’s overall valuation. They can be used to instigate a business’s rapid growth. By using financial models, we can make quick decisions related to different strategies.
What are the Different Skills Required to Become a Financial Modeling Expert?
Financial modeling is a profitable career option that requires a prominent set of skills. To become an expert in this field, one needs to acquire the following mentioned skills.
- Accounting – To be a financial modeling expert, an individual needs to master his/her accounting skills. Having all the financial records systematically arranged, analyzing all the transactions, and primarily tracking the economic health of a business is essential for it to operate smoothly.
- Forecasting – As a financial modeler, an individual needs to be adept at taking decisions that affect the betterment of the business. While discerning the past and present data, one needs to be able to conjecture the future of the business, and all the resolutions that follow must be in accordance with the speculations made.
- Finding quick solutions – Crisis Management is another substantial attribute needed to become a financial modeler. A clear and detailed perspective helps to deal with problems more effectively and leaves no room for unambiguity. Individuals with a clear mindset have a better chance of finding quick and reasonable solutions than people whose minds are chaotic and disorganized.
- Simplifying information – Breaking complex data into comprehensive chunks of information is the job of a financial modeler. Sometimes, a particular data is too intricate to be grasped in its raw form. In such a scenario, the simplification of data is vital before presenting it to other people.
- Proficient in using Excel – The spreadsheet that consists of all the data is built on Excel. Being acquainted with all the shortcuts is essential for computing a financial model without expending much time. This job can sometimes be tricky and test one’s patience so it is always beneficial to be skilled at using Excel.
What are the Different Types of Financial Models?
Before exploring the best financial modeling courses in Melbourne, let us take a sneak peek at the different kinds of financial models that exist.
- Three-statement model – The prime notion that comes to one’s mind after reading the name is ‘three statements’. It is an amalgamation of balance sheets, cash flow statements, and income statements.
- Income statement – The statement is liable to exhibit a company’s net worth and all the profits acquired by the company in a given period.
- Cash flow statement – This statement displays all the inflows and outflows associated with the company.
- Balance sheet – The balance sheet is inclusive of all the company’s assets, liabilities, and shareholder equity.
- Leveraged Buyout Model – Leveraged buyout refers to obtaining a firm or institution with borrowed funds predominating the acquisition amount. The acquired company’s assets coupled with the assets of the acquiring company are utilized as collateral for economic reasons.
- Sum of the parts model – This model is also referred to as break-up analysis. The procedure that this model follows involves deducing the valuation of a company by computing the sum of its segments if they were separated and introduced independently or if they were obtained by another corporation.
- Merger and Acquisition model – A merger and acquisition model assists in scrutinizing if the merger between two enterprises will prove to be advantageous. The unification is finalized only if the estimate of the merger is higher than the value of both companies individually. This model can be implemented to raise capital, assess the effect of acquisition, etc.
- Budgeting and Forecasting Models – These models aid a company in creating budgets for the upcoming years. By assessing the expenditures of the company, the budget is calculated.
Who Can Take the Financial Modeling Course?
Students who want to pursue Financial Modeling after class 12 can do so from highly reputable institutions or colleges. Candidates must complete their 10+2 education with finance, mathematics, or accounting as their major subjects and score a minimum of 40% in the examination.
The course can be studied even after the completion of graduation from a renowned university by scoring a set percentage or passing the entrance exam. There are many online courses available for financial modeling that candidates can choose to register in, at any given age.
If you are looking out to pursue one among the many financial modeling courses in Melbourne, you must be cognizant of how Microsoft Excel functions and know something about finance and accounts.
What is the Scope of Financial Modeling Courses in Melbourne?
By applying for any of the financial modeling courses in Melbourne, you are doing yourself a favor. An organization always prioritizes an individual with immense knowledge of the subject matter over a candidate who owns a degree in that domain. One does not necessarily have a degree in financial modeling to land a job.
Choosing to do one of the financial modeling courses in Melbourne is convenient for anyone who wants to have an experiential learning experience along with gaining theoretical knowledge. Candidates wanting to secure a job in the field of investment banking or commercial banking, in real estate, or as equity research analysts, etc. can opt for this course.
List of Top 6 Financial Modeling Courses in Melbourne
In the following segment, we are going to talk about the top 6 financial modeling courses in Melbourne:
1) Online Financial Modeling and Valuation Course – IIM SKILLS
Offered by: IIM SKILLS
Duration : 3 months
Fees: 723.13 AUD + taxes
The Master Financial Modeling Course by IIM SKILLS is designed by subject matter experts in the field of finance. There are no restrictions on who can participate in this course but you would be an excellent candidate if you have a degree in Commerce or any Finance associated stream, have fundamental awareness of the working of computers, and elementary Excel knowledge.
The course involves 100+ hours of practical assignments, 5+ case studies, and 70+ hours of lectures. The course curriculum encompasses a wide variety of modules ranging from the study of financial statements and business valuation to the study of technical aspects of financial modeling as well as fundamental and advanced Excel. The candidate develops the following skillset:
- Conversational and presentation skills
- An individual becomes solution–oriented
- They develop meticulousness
- Profound critical and analytical skills
- Considerable finance and accounting skills
- Imperative skills and techniques for valuation
Some notable points –
- 2 months of guaranteed internship
- Lifetime Access to all the lectures, eBooks, and study material via LMS
- 100% placement assistance
- Weekday, as well as weekend batches, are accessible
- Free Demo before registration
- Master Certificate after completion
- Associated with 150 placement cells
All the above-mentioned attributes make this course offered by IIM Skills one of the top financial modeling courses in Melbourne.
2) Introduction to Financial Modeling for Beginners
Offered by: Udemy
Duration: 6 h 14 min
Fees: 8.24 AUD
This course offered by Udemy is a 6-hour course and can be accessed on mobile phones as well as computers. The course is divided into 10 sections and comprises 59 lectures in all. Under this course, you can learn:
- Elements of financial modeling in terms of Excel
- Comprehending the process of financial modeling
- Techniques used in Excel
- Methods to build a financial forecast model in Excel
- How to build a reporting model in Excel
- Be adept at designing a financial model
- Understand the fundamental concepts of finance
The course offers lifetime access to all the educational elements and lecture videos. The faculty is experienced and the only requirement to enroll in this course is knowing Excel. You will be provided with a certificate after the completion of the course. The price of this course makes it one of the most affordable financial modeling courses in Melbourne.
3) Introduction to Project Finance Modeling
Offered by: JPA
Duration: 2 days
Fees: Not available
This private in-house course by JPA is a 2-day course aimed at experienced modelers who formulate financial models containing project finance. This is a practical course that helps you to build an enlightened integrated 3-way financial model. The trainers have experience working on Australia’s largest infrastructure and M&A transactions.
The size of classes is held in check so that each candidate receives equal attention from the trainer. The course involves substantial instances from our daily life besides theoretical understanding.
Topics included in this program:
- Understanding of project finance and modeling inferences
- Dates and flags
- Calculation of taxes, deferred taxes, and loss of taxes
- Capital expenditure, life-cycle costs, and depreciation
- Study of Cash flow, income statement, and balance sheet
- Revenue and escalation
- Senior debt vs sub debt
- Setting up of model
- Refinancing and Debt service reserve account (DSRA)
- Commitment fees and debt sizing
- Cash flow structure and setup
This course is suitable for individuals who have basic to advanced knowledge of Excel in terms of finance, have a prior understanding of accounting or finance, or have knowledge of project finance concepts.
4) Financial Modeling and Valuation Analyst Certification Program
Offered by: Corporate Finance Institute
Duration: 4-6 months
Fees: Self-study – 744.23 AUD
Full immersion – 1268.34 AUD
The financial modeling and valuation analyst certification program offered by Corporate Finance Institute is classified into two categories – Self-study and full immersion. Users can opt for any of the two but by preferring the ‘self-study’ course over the ‘full immersion’ one, they would miss out on some resourceful finance tools.
There is no stipulation concerning the background of candidates participating in this course. The course incorporates modules that range from fundamental to advanced knowledge of financial modeling and therefore, anyone can register.
The only requirement is the presence of a PC and a stable internet connection. The course curriculum is comprehensive. It blankets the following mentioned features :
- Financial statements
- Fundamentals of Accounting and Excel
- Corporate Finance and related concepts
- Foundation of Business Valuation
- Concept of Budgeting and Forecasting
- Mergers & Acquisitions modeling
- Leveraged buyout modeling
- Case study of Amazon
- Pitch books and PowerPoint knowledge
The course program is extensive and provides all the required tools, skills, and techniques to become a professional financial modeler. This course aims at imparting core knowledge.
Key points :
- Includes 40 courses that contain 2840+ lessons
- More than 200 interesting exercises
- Proficient instructions
- Blockchain certificate
All these features make this course one of the most versatile financial modeling courses in Melbourne.
Recommended Reads: Financial Modeling Courses in India
5) Microsoft Excel – Financial Modeling
Offered by: Nexacu
Duration: 1 Day
This course offered by Nexacu is a single-day program that starts at 9 am and continues till 4 pm approximately. The average class size is 5 while it can have a maximum of 10 students at large.
This course is applicable for candidates who have an intermediary knowledge of Excel tools and are now looking to master the functions, formulas, and other areas available in Excel. If you have no clue about accounting and financial theory, investment analysis, or bond math, you are not eligible for this course. Candidates are provided with all the reference materials.
The course content includes :
- Modeling techniques
- Referencing of formula
- Logical functions
- Data and time functions
- Lookup functions
- Math functions
- Protecting data
- Complex formulas
- Absolute vs relative referencing
The session starts with the primary introduction to financial modeling and proceeds towards more complex topics like mastering Excel tools. It also includes case studies and building models from scratch. The fact that it is a single-day course makes it one of the most feasible financial modeling courses in Melbourne.
6) Financial Modeling in Excel Training Course
Offered by: Access Analytic
Duration: 2-5 Days
Fees: 1499 AUD for face-to-face training
Mode: Classroom and virtual
This course by Access Analytics encircles the fundamentals of Financial Modeling along with Advanced Excel features. It is not required but it will be fruitful if candidates have a basic knowledge of Excel before initiating the course. Students cognizant of basic Excel functions may opt for Volume 2 of the course while those completely unaware may choose to study Volume 1.
This program covers the comprehension of both aspects – principles related to financial modeling and real-life implementation of these principles in Excel to create financial models efficiently.
Some core points:
After completion, an individual attains:
- Excellent understanding of financial modeling and valuation.
- Ways to Outline and aggregate data
- Advanced Excel knowledge
- Experience to handle large data sets
- Methods to improve the structure
- Various techniques to keep formulas uniform
- Knowledge of the extraction of data to match the criteria
- Understanding of macros and their application
The courses at Access Analytic are customizable according to your requirements. A 10% discount is available for those who book 10+ full days of training during the 30 days.
Frequently Asked Questions
1) What is the FAST Standard in Financial Modeling?
The FAST standard is the most extensively accepted and independently superintended standard used in financial modeling. The standard is a collection of directives meant for the construction of spreadsheets in Excel for the purpose of financial modeling. FAST is an abbreviation that implies the following meaning :
Flexible – The model must be designed such that even after revamping the business drivers and presumptions in it, the robustness of the model stays similar.
Appropriate – It should be taken into account that the authenticity and convolutions of the model are considered at all times. You might be explicit but it is not always correct.
Structured – Make sure that the financial model is well assembled across the spreadsheet.
Transparent – The model must be comprehensible and lucid for anyone to go through. Avoid including complicated mechanisms in the model and break your computations into understandable parts.
This standard makes a model rational, structured, valid, and clear.
2) How is Financial Modeling Different from Financial Forecasting? Are they Both Similar to Each Other in Any Way?
You might often notice that in the world of business, financial modeling and financial forecasting are used reciprocally. But both of them are considered discrete. Financial forecasting is the approach used to predict the state of a business firm in the upcoming future whereas financial modeling is a process that stands for the assessment of the financial performance of a corporation based on these predictions, forecasts, or previously collected data.
While forecasts may be displayed on cash flow and income statements as well as balance sheets, financial models are created for utilization or reference within the corporation and may not essentially be shared with any investor. Though financial modeling and forecasting are two independent terms, they are similar to each other in a way that both forecasts and models use the same past information to project a business’s earnings.
3) What are the Best Institutes to Learn Financial Modeling in Melbourne?
IIM SKILLS provides the best financial modeling courses in Melbourne.
4) What is the Salary for a Financial Modeler in Melbourne?
The average remuneration that a financial modeler receives in Melbourne is 85000 AUD.
Financial Modeling is an integral part of any business that requires proper and consistent alignment of historical data and present information for future reference and decision-making. It is a booming career option for people in Melbourne. To earn a high figure, they may choose to do one of the above-mentioned financial modeling courses in Melbourne. Besides that, an individual needs to work on all the necessary skills required to become a prosperous financial modeling analyst.