What Are Financial Modelling Skills? With Examples
Updated 30 September 2022
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Careers in financial modelling include financial analysts, financial modelling analysts and data analysts. If you are interested in applying for a financial modelling position, it is essential to list specific skills on your CV and your educational background and work experience. Learning how to include relevant skills and showcase them can improve your chances of starting a new career. In this article, we consider what financial modelling skills are, how you can showcase these skills in your resume and frequently asked questions about these skills.
Related: What Is Financial Modelling? (With Benefits And Types)
What are financial modelling skills?
Financial modelling skills include a combination of finance, accounting and business skills to create an abstract model of a business aspect that allows future forecasting. These skills can help you prepare for a career as a financial modeller:
A career in financial modelling requires a solid understanding and knowledge of accounting and financing principles. In financial modelling, you use financial documents and accounting statements to develop scenarios to facilitate financial decision-making. Understanding concepts such as cash flow, amortisation and revenue can be helpful. To display these skills on your resume, you can include a sentence under your past work experience to explain how you have applied it in a work environment.
Example: Displayed a solid understanding of financial principles when analysing financial statements for clients.
A commonly used tool for financial models is a spreadsheet. Skills you use when modelling in a spreadsheet include data entry, macros, pivot tables and complex calculations. You can list the spreadsheet software you are familiar with in the skills section of your resume and mention the specific plugins or formulae you have used. Consider including these details in the work experience section of your resume and explain how it helped you achieve a particular outcome.
Example: Created various financial models in Excel using complex tools, including lookup features, macros and pivot tables.
Financial modelling is not the same as forecasting. Forecasting includes the use of historical data analysis to forecast possible future outcomes. You can forecast different business factors, such as revenue or cost projections. You can mention the types of forecasting you have done in the skills section of your resume and mention any related work experience you have.
Example: Created forecasting models for different aspects of asset management, including loans, payments and interest.
Most companies have separate positions for internal auditors. It may still be helpful to include your auditing skills on your resume, as it may show that you know what to consider in compliance matters. You can do this by mentioning your experience in auditing financial models or financial documents in the experience section of your resume.
Example: Completed audits on all financial models, including the technical assumptions and accuracy of calculations.
Types of modelling
There are different types of modelling. You can mention the types of modelling with which you have previous experience in your resume under the skills or work experience section. This is important when the job description mentions a requirement for experience in specific types of financial modelling.
Example: Built and maintained discounted cash flow models to support accounting and financial forecasts.
Problem-solving refers to the ability to assess situations to identify the best possible outcomes. Although this is a soft skill, it is essential for financial modelling as you can help your employer make logical conclusions based on predictive and historical data patterns. An organisation may want to see how you have used your communication and organisational skills to solve work-related problems. You can list problem-solving in the skills section of your resume. In the experiences section of your resume, consider including a responsibility that shows your continuous use of your problem-solving skills.
Example: Applied problem-solving skills to consolidate and analyse data to develop investment solutions.
Related: Problem-Solving Skills: Definitions And Examples
Sensitivity analysis refers to understanding how specific variable factors may affect fixed aspects of the business. It works similarly to a What-If Analysis, in which you may review data within specific scenarios to see how they may affect different business aspects. Sensitivity analysis is essential when you make solution recommendations for an organisation after considering the factors influencing outcomes. Some roles may require you to have sensitivity analysis experience, while others may require you to have a basic understanding of sensitivity analysis.
Example: Developed sensitivity analysis models to analyse the impact of share prices on the company's asset valuation.
One of the primary responsibilities of a financial modeller is data analysis. Data analysis is crucial in analysing multiple documents to make accurate recommendations. Include details of the tools you have used to analyse data in the skills section of your resume. Examples of this can include financial software applications or spreadsheet tools. You can also include a separate sentence to display your data analysis expertise in the work experience section of your resume.
Example: Performed return on investment data analysis using the three-model analysis method to increase return on investments (ROI) by 15%.
Related: 10 Valuable Data Analysis Skills
Some positions may require sector-specific knowledge. It may still be helpful to include similar experience in a different sector on your resume. You can include a bullet about your sector-specific knowledge in the skills section of your resume. For instance, you can include Real-estate financial modelling as a skill on your resume. Then, you can name the company for which you provided this service and describe how you used your skills in financial modelling in this sector specifically.
Example: Assisted marketing clients with financial modelling and market research.
In your role, you may present your models to different stakeholders or senior management. Your presentation skills can indicate how you can simplify complex information to your audience's experience and requirements. You can include the presentation or data visualisation software you have used before in your resume's skills section. In the work experience section of your resume, you can mention details of your presentation topics, the audience you presented to and the tools you've used.
Example: Presented data analysis findings for marketing opportunities to senior management using graphic tools and slide decks.
You may have used a variety of technologies with your previous employers. Include details of these items in your resume. Examples may include presentation software, spreadsheet tools, data analysis and visualisation tools. Including this on your resume can show your familiarity with technological trends in finance and your ability to use the technology when creating and maintaining financial models.
Example: Used big data analytical tools and visualisation tools to present models clearly.
Attention to detail
Paying attention to detail is a critical skill for financial modellers. Models can be complex and contain vast amounts of information. You can mention your high level of attention to detail in the skills section of your resume and offer examples of when this particular skill benefitted your work.
Example: Used my attention to detail to identify and correct source data errors in a financial model for the procurement team.
Another essential skill for financial modelling is design. Design skills in this context can refer to your ability to make a financial model practical and aesthetically pleasing. A good financial model has clean formatting, easy-to-understand graphs and a professional appearance. You can include details of your design skills in the skills section of your resume.
Example: Used design software to develop an interactive and professional-looking forecast model for the marketing department.
Related: What Is Creative Design? Skills And Popular Careers
Frequently asked questions about financial modelling skills
Here are some of the commonly asked questions and answers about financial modelling skills:
Who uses these skills?
Financial models help companies consider their history when predicting their future financial performance. Financial analysts and data modellers use their skills to develop financial models. Analysts present their findings from the financial models and make recommendations to senior management about workable solutions and outcomes. The results of the financial models support senior management's decision-making.
Related: What Is A Data Modeller And What Do They Do?
What are the different types of financial models?
There are many types of financial modelling. Here are some examples of financial models:
leveraged buyout model
discounted cash flow model
option pricing model
the sum of the parts model
What types of business decisions can financial modelling influence?
These are examples of areas where the results of the financial models may influence a business' decisions:
raising capital for a company
valuing a company
growing business activities
acquiring assets or other companies
selling assets and business units
budgeting and forecasting
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