Financial Modeling Training
As a finance professional if you are looking Financial Modeling Training in Dubai then Tafkeer Professional Development offers different courses for professionals in United Arab Emirates for multiple career levels.
Financial models are used to forecast the performance of an organization, project, or any other form of financial investment. They model the relationship between various macro-economic, operating, investing, tax, accounting, and financing variables.
Most financial models are used to run scenarios in order to test the sensitivity of key outputs to different input assumptions and to predict financial results with greater confidence
You Will Learn How To
- Appreciate the rationale for financial modeling and understanding the need for where to use which model using professional structuring and techniques.
- Using Advanced features of Excel to construct the Financial Model.
- Creating an automated loan model using Advanced Features of Excel
- Compiling Financial statements (Balance Sheet, Income Statement, Cash Flow Statement)
- Calculating Ratio and interpretation of them in Financial Modeling Training
- Practical issues like Cash Management with Waterfall Mechanism, Taxation, and Provisions.
Who Should Attend?
- Chartered Accountants
- Finance Professionals
Using templates provided by the instructor, participant will build sections of the model’s structure, algorithms that drive logic, Data Tables, PivotTables, graphs, Scenarios, and other critical modeling components.
Key characteristics of a financial model
- A Financial Model as a quantitative representation or simulation
- Actual and pro forma financial inputs and outcomes
- Data to populate financial statements and secondary worksheets
- Graphical worksheets
- A complete set of budgets
- Analytics worksheets for understanding the model
- Macros that automate repetitive tasks
- Best practices for using NPV, XNPV, IRR, and XIRR
- Projecting from historical data using LINEST, TREND, LOGEST, GROWTH, adding trendlines to charted data and forecasting from the associated equations
- Data smoothing tools to use prior to forecasting
- Accomplishing business objectives with a financial model
- Key model elements that create a dynamic model
Getting More Comfortable with Excel
Financial modeling‘s most standard platform is MS Excel 2007 & 2010. Using this software application, Participants will cover key Excel skills that are needed to build a good model, using financial accounting rules. Participants will fill in any Excel knowledge gaps, before starting to build a financial model.
- Model template layout process
- Special Excel tools
- Audit Toolbar
- Goal Seek
- Tools to write formulas/nested conditional formulas
- Excel Macros
- Types and characteristics; absolute versus relative
- How macros help
- Designing a macro
- Features that MUST be embedded in you model
- Building, populating and naming key worksheets
Constructing a Financial Model with Advanced Skills
- Designing the general service/manufacturing corporate financial model.
- A flow chart for enterprise modeling
- The Dashboard Worksheet
- The Assumptions Worksheet
- Foundation Worksheets
- Revenue and COGS/COS Model
- Income Statement and Balance Sheet Budgets
- Departmental Expense Budget
- Headcount and Staffing Budgets
- CapEx Worksheet
- Developing Financial Statements from the Budgets
- Building an Actual versus Projected Worksheet
- Financial Statements Interdependencies
- How to design and record MACROS for automating repetitive tasks and for automating the update of CapEx, Headcount/Payroll, and required Capital Infusions as Revenue and Operating Expense inputs are varied.
- Navigating and auditing the model using named ranges and the Formula Auditing Toolbar
- Visual Representation
- Data that drives Excel charts
- Key management information charts
- Advanced Excel charting skills
- Input/Output charting on the Dashboard
Testing the Model
Once you have a model “up and running”, you’ll learn the best ways to test your results before you go “live”. Using a host of tools and methodologies, you’ll learn the basics of auditing and “sensitivity testing” in Excel and you’ll learn where to look for problems.
- Performing a Scenario test in Excel
- Test outputs as a function of changing inputs
- Preserve and display the original baseline data and the new scenarios in a Scenario Manager Report
- Perform “what-if” analysis across changes in two variables simultaneously
- Display the output in a 2D array
- Capturing, deploying and displaying testing outcomes using Excel
- Identifying targeted and optimal outcomes using Excel’s Goal Seek and Solver tools
- Use Goal Seek to find the value of an input data value that will produce a specific output value for a targeted formula.
- Use Solver to find optimal solutions to Capital Budgeting, Logistics, Real Asset Portfolio Management, and Operating Budget Management problems.
- Understanding Descriptive Statistics, Moving Average Data Smoothing, and Exponential Data Smoothing using the Data Analysis ToolPak(DATP)
- Use the RANDBETWEEN function to simulate constrained random data values for data smoothing exercises
- Examine uses of DATP functions as Histogram
- Use the Histogram tool to sample test the Central Limit Theorem
The Art of Auditing a Financial Model
Once you have your functioning model built and running, you’ll want to continually audit your work and calculations back at the office. In this section, you’ll learn the best ways to audit for errors and detect any problems. You need to trust your results.
- Methods for auditing a large model
- Identifying and repairing Architectural/structural/strategic problems/solutions
- Input/Output testing:
- Using the Watch Window on the Auditing Toolbar for remote output observation
- Additional methods such as Spin Boxes for ensuring that output formulas are properly linked to input variables
- Auditing on the fly as the model is being built
- Using Excel’s built-in auditing tools:
- Background Error Checking
- Tracing precedents and dependents
- Trace Error Tool
- Evaluate Formula Tool
- Formula Auditing Mode
- Advanced topic: Using analysis of variance (ANOVA), to test other ToolPak skills for statistical significance
- Test sales plans for statistically significant efficacy
- Test the margins of model income-statement projections for reasonableness against industry-average margins