Learning to model an integrated and consistent set of Financial Statements is a foundational skill for anyone working in a finance or finance related role. It requires 3 core areas of competency:
- An understanding of core accounting concepts
- An ability to apply the accounting concepts to design internally consistent “model logic”
- Excel skills that accurately and efficiently convert “model logic” into “spreadsheet logic’
These skills are traditionally taught by an instructor over the course of a 2 or 3 day program. While this type of training has its place, time constraints and the differing skill level of course participants often makes it difficult for an instructor to comprehensively cover all three competency areas to the extent required.
The objective of this Course is to overcome this limitation by eliminating this artificial time constraint and allowing each participant to work through a comprehensive coverage of the core competency areas at his/her own pace. It also allows plenty of time and opportunity for participants to reflect on and review areas requiring deeper study.
Over 45 concise modules, this course takes the participant step by step through the process of building a model from a blank spreadsheet. Multi-media elements such as animated diagrams, screen shots and video content are fully leveraged to provide an engaging and effective learning experience. Comprehensive instructor support is provided via e-mail, phone conferencing and screen sharing webinars.
By the end of the course, you will:
- Understand what is meant by an integrated set of financial statements
- Know what each line item on the Income Statement, Cash flow Statement and Balance Sheet represents and how it interacts and effects line items on other financial statements
- Be able to analyse historic data to determine key relationships
- Have knowledge of the advantages and pitfalls of different forecasting techniques
- Understand the “drivers” for each line item and how to make defensible and consistent model assumptions
- Recognise modelling best practice (setup & structure, number conventions, consistency, using formulae and functions, conditional formatting, shortcuts etc.) and how this avoids errors and promotes efficiency and transparency
- Have gained a systematic modelling process and methodology that eliminates errors and time consuming troubleshooting by ensuring the balance sheet is balanced at every step during the model building process
- Have developed a deep understanding of the linkages between the financial statements and how to deal with modelling circularities
- Improved knowledge of key management ratios and how to model them
- Have built a comprehensive and integrated 3 statement model for a real multinational company, using real data, starting from a clean spreadsheet
- Know how to use the model to carry out sensitivity analysis and scenario analysis
Each step of the model building process is clearly explained with screenshots, animated diagrams and video content. “Check” spreadsheets are provided so you can check your work at each step along the way.
The course takes between 20-25 hours to complete.