April 24, 2015
The Chartered Accountant qualification is one of the highest forms of degrees in India. Not only earning CA takes hard work, but also relentless dedication on the part of CA students. In order to be in pace with the changing times, companies have incorporated data management system. What if we tell you building financial models and working on excel is one of those crucial technical skills and pre-requisites that paves the way for a long term successful career after CA qualification? Yes, financial modeling has become the foundation stone in carving a successful career in the corporate world, today.
Below are some of most neglected, yet essential ways where financial modeling can help CAs in their careers:
1. Treasury Department- If you become a senior manager in the treasury department of a company, you will most probably have to prepare and monitor your company’s cash flow, forecasts, and design various financial models. In which case, a course in financial modeling will come for your aid.
2. Corporate Finance- In fields like corporate finance, you might land into jobs that would need you to make decisions on business management, capital allocation or transaction decisions. Today corporate finance teams looks into standardized approach and flexible designs to develop solutions, for which financial models carry utmost importance.
3. Asset Liability Management- In asset and management department, managers resort to financial modeling to stick to simple types of analysis that help in reducing the time and cost involved. Whether reporting the interest rate risk, projecting net interest income or creating valuations, financial modeling plays a great role.
4. Mergers and Acquisitions- Mergers and acquisitions analysts, today, are performing financial analysis of a company, conducting rigorous follow-through on before and after mergers & acquisitions by the help of financial models. They are responsible for analyzing a company’s business, with a clear understanding of quantitative concepts; this is where financial modeling steps in.
5. Equity and Company Valuation- CA’s often land up in equity research and valuation roles, wherein, being proficient in building financial models is counted as basic traits. If you wish to simplify your financial projections, or determine other dynamics effortlessly, mastery over financial modeling is essential.
6. Management Reporting- Management reporting include preparation of financial reports, handling risk and regulatory, and reconciliations. Professionals involved in management reporting are accountable to both finance and business team, and therefore, they need to be accurate in their forecasting and planning, which can only be done with the help of financial modeling.
Is Financial Modeling for You?
It is a program exclusively designed to bridge the technical gap that a CA qualification lacks. In short, to have an added advantage and an edge over others, financial modeling is necessary. In today’s competitive world, where having an additional degree is the need of the hour, specializing in a degree like this will help you make your presence felt in the industry. If you are a CA fresher or finding your career path in the accounting realm, then this value-addition is all you need to stand out in the crowd.