Table Based Financial Modeling

Table Based Financial Modeling

Introduction to the co-author

Craig lives in the US which is why he says he โ€œspells modeling more efficiently ;) โ€ and the rest of the article is not written in the Queenโ€™s English.

Craig is an IT executive with strength in systems, but he is no stranger to business and finance. His finance experience started working for a mortgage banker when US interest rates were double digits and debt instruments using the rule of 78s created negative amortization.

Mindset of embracing the grey

Mindset of embracing the grey

INTRODUCTION TO THE CO-AUTHOR

Lisa is a co-founder of a consulting firm that works with management teams to create confident decisions backed by data.  She uses financial modelling as a way to help her clients articulate their vision, bring colour through the numbers and break the strategy down into actionable steps.

Her company name, Effigy Consulting, is based around our belief that a financial model is a representation of the business:  The model is a safe space where you can test a business model and assumptions rather than destroying the actual business.

What is your finance cadence? Are you keeping up to speed?

What is your finance cadence? Are you keeping up to speed?

Typically in finance we have a particular type of cadence.

This cadence is largely consistent across different organisations no matter what the industry you support. We are likely to have some or all of these:

  1. Monthly reporting,

  2. Quarterly reporting and forecasting,

  3. Half year reporting (if listed),

  4. Annual statutory reporting and tax filing (we all have this one),

  5. Annual budget process and

  6. Longer range strategic planning for 3 to 5 years.

Now that's a pretty full dance card if you ask me.

So how do we keep up with all those requirements whilst making sure that we are not just hitting the deadlines but actually accelerating the value that we add to the business.

Read our latest blog for more insight without the big price tag attached.

How do you recruit strong financial modelling skills in your team?

How do you recruit strong financial modelling skills in your team?

Very few ๐Ÿ˜ฌ finance professionals have what it takes to build a good financial model, but if you use a few short steps you can find ๐Ÿ‘€ those diamonds๐Ÿ‘ท in the rough.

It's like changing someones title to Finance Business Partner and expect them ๐Ÿ˜ to suddenly add value and build good models.

It doesn't work ๐Ÿ‘Žthat way, never will!

Without the right training and hiring you will just be running on the same tredmill ๐Ÿ˜ต with the same people with the same skills gap๐Ÿ˜ฑ.

Being an advanced excel user๐Ÿ“ˆ(not that anyone can succintly explain exactly what that means) helps, but its certainly not the only criteria.โ˜

Forecasting skills doesn't guarantee good modelling skills

Forecasting skills doesn't guarantee good modelling skills

Forecasting does not guarantee you will be great at financial modelling. ๐Ÿ˜ฑ

Just because you can drive a car doesn't mean you can be a Formula 1 race car driver. ๐Ÿš—

Playing T20 cricket doesn't guarantee you will be a great test cricketer. ๐Ÿ˜

The same goes for forecasting and financial modelling. ๐Ÿ“Š ๐Ÿ“ˆ ๐Ÿ“‰

#FinancialModelling #Finance #FutureofFinance

How Technology Will Change FP&A Forever

How Technology Will Change FP&A Forever

Is all this tech talk and Finance Transformation getting a bit much? ๐Ÿ˜ต

Where do you start and stop? ๐Ÿšฆ

There is so much on offer from RPA to Analytics to Modelling. ๐Ÿ“ˆ

Read my co-authored ๐Ÿ™Œ article with Anders to learn more and demystify all the jargon and pick some practical solutions you can try. ๐Ÿ‘

#finance #futureoffinance #analytics #Excel #cloud #digitization #FinancialModelling

Why so many unemployed accountants are already struggling..and how I can help?

Why so many unemployed accountants are already struggling..and how I can help?

I often get direct messages on LinkedIn from people asking me for either a job, career advice or helping them understand financial modelling and how do they apply for jobs in Australia, thinking Australia is immune to accountants losing jobs or unable to get them.

I wrote this blog to help the many that are lost in this fast evolving work force.

Father battles cancer, son battles career extinction

Father battles cancer, son battles career extinction

I became an accountant thinking I would have a job for life.  All companies need one,  so safe..right? 

Wrong. 

Many accountants are struggling to find jobs equivalent to their years of experience, if at all, in some ever increasing examples.

What I feared is now becoming fast a reality.

What I feared too for many years was my father's fight for life with cancer. He survived 32 years fighting until he lost his battle recently.

His legacy was helping many people, including strangers,  I hope with this post you too learn from an amazingly positive thinking individual.

I see lots of linkages in what he was able to navigate, similar to many accountants facing   challenging times of survival.

I hope too that the many cancer fighters and their families and friends learn too how our minds and outlook has such a big part to play in living.

Why being a 1-man/women VCFO business is a really bad idea?

Why being a 1-man/women VCFO business is a really bad idea?

3 years ago I stepped out of the corporate world and became, what I didn't realise at the time, a virtual CFO for Banjo (Fintech lender).

I don't really like the word VCFO but it's what we have for now so let's just roll with it. Probably a blog on its own.

This post is some more tips and tricks I learnt along the way and especially clearly proving the Power of One = Power of None.

I hope you can learn from my mistakes.

Why Vlookup (vs Index(match) shows your lack of embracing change, innovation and better Excel skills

Why Vlookup (vs Index(match) shows your lack of embracing change, innovation and better Excel skills

Over the past year I've met many finance professionals as part of our FOFM world tour and future of finance workshops.

Despite all the hype of digital finance transformation and the rise of analytics and advanced AI and ML there is one thing that still concerns me deeply about our ability to adopt change, innovation and better Excel skills.

I'm not even referring to adopting new tools and technologies (many of which will radically change our work today and are here now) but changing how we use our existing tools.

Why Monte Carlo will change the way you make financial decisions and think about scenarios?

Why Monte Carlo will change the way you make financial decisions and think about scenarios?

Ever heard of the term Monte Carlo Simulation. Its more than just an awesome casino its a much better way to make forecasting decisions.

Want to know more? 

Read this blog and you will change your mind about decision making.

Inside the mind of a spreadsheeter vs a financial modeler

Inside the mind of a spreadsheeter vs a financial modeler

After meeting so many finance professionals there are really 2 camps they fall into. The spreadsheeter or the financial modeler. Of course most would claim that they are a financial modeler and few would dare admit they are a spreadsheeter.

But sadly, only a very small % of them are financial modelers. But this is changing as the demand for great modelers increases and awareness of skills gaps are highlighted and resolved. 

Hopefully this post enables even greater awareness of the differences.

Virtual CFO the Good, Bad and the Ugly

Virtual CFO the Good, Bad and the Ugly

This Blog post is intended to provide future finance professionals with some insight in terms of developing a VCFO business.

Having evolved my CFO role into a VCFO there were many things I learnt and also would have changed had I known better.

Hopefully my mistakes don't need to be repeated by others.

Part 3 of Finance Innovation โ€“ The Airbnb of spreadsheets - first major wave of spreadsheet innovation

Part 3 of Finance Innovation โ€“ The Airbnb of spreadsheets - first major wave of spreadsheet innovation

This blog post explores the first major wave of spreadsheet innovation and compares it to Airbnb.

There are a lot of benefits from the sharing economy but when it comes to spreadsheets sharing content is not only foreign but also risky. 

But now it is both possible and lower risk resulting in new opportunities.

Do You Model Off against the Masters of Financial Modelling?

Do You Model Off against the Masters of Financial Modelling?

Your forecast is only as good as your financial model. Do you agree?

Finance Masters use financial modelling to their advantage by creating forecasts updated in real-time, using internationally recognized modelling standards and might even compete in Model Off. Here's a jointly written post by myself and Anders Liu-Lindberg on what it takes to become a Finance Master in financial modelling. So, do you model off with the masters?