Why CAs should do Financial Modeling?

Why CAs should do Financial Modeling

Veena had recently passed her Chartered Accountancy exam. She was in seventh heaven and was eager to meet her colleagues in office. Happily radiating with the congratulatory wishes showered on her, she felt as if a big mountain was surmounted.
Her senior colleague Anoop congratulated her and excitedly asked her about her future plans.

“Hmn, you see, I am not so keen on traditional field of audit and taxation. Instead, I would love to venture in the business of investment banking. I hear that it is a booming industry… Can you suggest me how I should enter this venture?” Veena naively answered.
“Well, not sounding too preachy Veena, I would like to tell you that learning is a continuous process. Passing the Chartered Accountancy process is no mean task, however, it gives you experience in conventional fields, making your technical knowledge strong. Investment banking requires you a strong knowledge of spreadsheets, technique of preparing financial models and analysing financial information.”
“So what do you suggest Anoop?”
“As you know, I am currently working on a merger case for our clients, which involves preparation of financial models on Excel sheets, on the basis of financial data of the acquiring company. I suggest you undergo the financial modeling course, as it helped me in this assignment.”

Like Anoop’s statement above, it has become very important in this era, to continue learning, and adding more certifications that will help accelerate our career growth. As a newbie, there will be so many candidates passing out. Consider another candidate vying for the same job. Of course, the company will prefer the candidate who has some additional certifications, especially those which give you an additional edge over others.

http://selinathompson.co.uk/?m=online-payday-advance-cash-loan Advantages of Financial Modeling (FM) for Chartered Accountants –

  • Helps develop proficiency in preparing spreadsheets and evaluating projects
  • Writing reports and analysing financial statements as required by the clients,
  • The Chartered Accountancy curriculum has already prepared students to read between the lines of financial statements and we have a knack of unearthing the details. If that knowledge can be given the right direction, they can excel even better at such unconventional fields.
  • In case, one wishes to continue in practice, financial modeling course can be of great aid for preparation of project finance reports.
  • Develop critical thinking ability, decode financial statements and produce MIS reports on spreadsheets. The management requires candidates who can aid them in their decision making process. It can be a perfect blend of our expertise in accounting and taxation field added with skills required for a financial research analyst.

go to link Arenas it will open for CAs

  • source Investment Banking: Help in mastering excel skills which is essential for IB, forecasting revenues, taking appropriate investment decisions, etc.
  • source url Equity Research: FM will help you develop skills to research listed stocks and analyse investment options to give smart recommendations to clients whether to buy/sell the stocks.
  • Project Finance: Projecting financial viability of a project, analysing the cash flows, preparing requisite models for different models, etc. For a CA in practice, he can gain expertise in this field, through the FM course.
  • Corporate Finance: Preparing MIS reports that monitors and evaluates financial performance, decision-making considering viability of any investment/project, thereby aiding the management in making profitable decisions.
  • Mergers & Acquisitions: Valuation of acquiring company, computing synergy benefits, forecasting revenue, competitor analysis.

The emerging KPO sector has increased the number of firms outsourcing their financial analysis functions to outside firms. There are many firms who are in constant need of expert analysts for their research activities. In short, if the above are your areas of interest, CAs should undertake the FM course to remain competitive in the market.

Persuaded with Anoop’s suggestion, Veena said. “Thanks Anoop, I will certainly undertake this course, and put this on my top priority list.”

“Yes, but the top priority now is to celebrate your success! I expect a grand celebration of your achievement!” Anoop exclaimed.