The scope of Financial modeling is increasing all over the world. Financial modeling is different from financial accounting & audit jobs. It is not necessary for an individual to have any formal degree to prepare a financial model instead, it is important to understand the business well something like the revenue drivers or cost drivers.
India is termed as an immature market because many start-ups and even big companies fail or keep swinging because they lack financial modeling in their business. Financial modeling services help businesses to make better decisions also analyze the data more efficiently. So it is important to focus more on modeling the ideas first and then investing only if the idea looks viable and profitable.
Financial modelers are hired by Banks, Equity Research firms, Credit Rating companies & Project Finance. They work in the core area because the output of a financial model is used for decision making and performing financial analysis, whether inside or outside of the company. The tradition of Financial modeling could be started by anyone in the organization who deals with business development, vendor development, operations, profitability, MIS, tendering, marketing as they can easily acquire modeling skills.
One of my friends recently used financial model for marketing and sold his product showing the customer that the product will produce good cash flows. So, the financial model is a very good tool for presenting value within the things; and what not.
With the nature of businesses getting complex, uncertain, invisible in future, the importance of financial modeling is increasing. It is believed future of financial modeling is very bright and it is becoming a must-have skill in today’s world. You may go to the job portals and find that there are a lot of openings which require financial modeling skill
The best way to take the plunge into the domain of financial modeling would be to start with a training session with a reputed institute like IMS Proschool. It’s a nice program and will provide you with a lot of clarity on the concepts.
A financial modeller has not to worry about his job in long term, as one can make money sitting at his laptop at his home – given that the model one creates is of industry standards. So, after working in the industry for 5 years and gaining some credibility, one can choose to sit back at home and become a freelancer to make money from financial modeling.