Financial modeling skills you can add to your resume

CFA level 1

Financial Modeling is one of the most desired skills in the corporate world. Financial modeling includes essential skills required by finance professionals. 

Financial Modeling is a core skill that helps in taking major decisions in the corporate world. These models help in:-

  • Executing business choices for adequate solutions
  • Calculate the risk associated with certain situations
  • To devise an effective financial statements

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Application of Financial Modeling 

  • A financial model is an essential tool that allows businesses to calculate the risk involved.
  • It is the act of representing a company's financials in a systematic format.
  • The financial model is a mathematical term that aims at representing the monetary performance of the organization.

Financial Modeling is used in various sectors such as:-

  • Investment Banks
  • Credit Rating Agencies
  • Equity Research
  • Mutual Funds
  • Financial KPOs
  • Project Finance companies.
  • Career Opportunities

    Once you have completed the financial modeling course, you learn various skills that add value to your resume. Let's discuss some of the skills in detail and how they can help in getting jobs:-

    • Accounting

    If you want to make your career in financial modeling, then it requires a strong knowledge of finance and accounting principles. It refers to the ability to use accounting information and financial documents to create scenarios for potential financial decisions.

    This involves the basic knowledge of various concepts like revenue, cash flow, capital allocation, and amortization. If you want to showcase these skills in your resume, you might have to show your previous work experience and how you used your accounting knowledge. 

    • Spreadsheet Management

    Financial models are created using spreadsheet tools. Apart from data entry, you might benefit from exhibiting your skills through functions, pivot tables, macros, and other intricate calculations. You can mention these skills in your skill section mentioning which tools you used and what you accomplished  

    • Forecasting

    Financial modeling varies from forecasting in that it allows you to apply various approaches to anticipate future outcomes, such as historical data analysis. Forecasting includes various areas of business such as sales projections. In comparison to other skills, you can mention the type of forecasting you've applied in different projects on your resume.

    • Auditing

    Some companies have a distinctive role for auditors. If you are mentioning this skill in your resume, make sure what to include on a model for compliance. Financial documents or financial models act as a part of your experience.

    Financial models have a variety of models such as:-

    • Modeling types
    • Three statement model
    • Discounted cash flow model
    • Consolidation model
    • Leveraged buyout model
    • Problem-solving

    You can specify those models in your resume in which you are an expert or the ones you have created.

    It refers to the ability to evaluate situations and determine the best results. This skill is crucial in financial modelling because it enables firms to make decisions based on past facts. Interviewers might be interested to see how your organization or communication skills. You can include any one responsibility where you have used this skill.

    • Data analysis

    Data analysis is a huge responsibility in financial modeling career. It is more than creating models, making recommendations, analysing data from different financial documents providing adequate solutions. 

    You can add a line mentioning your experience or tools you have used such as spreadsheet tools or financial software. 

    • Industry-specific knowledge

    Industry knowledge can be a requirement for the company. If you mention specific industry knowledge in your resume and have experience in the same field may attract recruiters and can call you for an interview.

    We have discussed some of the skills in financial modeling so, if you are someone who is from a finance background can consider this course.