Tips on How to Get a Financial Modelling Certification

By Indeed Editorial Team

Published June 2, 2022

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

Knowing how to predict the estimated earnings of a business in the future is a valuable skill in the business world. Financial modelling uses current business trends and profits to forecast potential earnings. Earning a certificate in financial modelling can enable you to help companies and investors determine which businesses may be profitable in the long term. In this article, we define financial modelling, explain how to get a financial modelling certification, look at why you might want one, and what career paths a certificate can offer.

What is financial modelling?

Financial modelling is the process of using a business' current sales information, trends, expenses, and any other relevant data to create detailed forecasts of their potential income, among other financial analyses. These models help businesses stay current, adjust their sales structures, and can help them predict how much stock they may want to purchase.

Professions other than financial modellers also use these models. Investors use them to predict the potential growth of a business, financial institutions depend on the models to help determine the value of a business, and stakeholders use these models when selling assets. Having accurate financial models is essential to many business operations.

How to get a financial modelling certification

Listed below are the steps on how to get a financial modelling certification:

1. Gain relevant experience

While not required, it's helpful to gain relevant experience before taking the Financial Modelling & Valuation Analyst (FMVA) course. This course can be demanding and requires a good amount of financial knowledge. Having experience in the financial field or an educational background in finance can help you succeed with the FMVA program.

2. Enrol in the FMVA course

The Corporate Finance Institute (CFI) is the predominant place to obtain your FMVA. It's a globally recognized organization that offers the course online and allows you to build a personal learning schedule. Enrolling offers you access to various courses beyond the FMVA. The FMVA course can teach you everything you'd want to know about financial modelling while rewarding you with a full FMVA certificate at the end of the program. The average time to complete this course is six months.

3. Complete the 12 mandatory courses and final exam

The FMVA course at the CFI consists of 11 mandatory courses and a minimum of three electives, with seven optional prep courses to help people prepare for the program. These courses cover many topics, such as accounting fundamentals and professional ethics. Industry experts teach the courses and provide you with access to over 120 templates. Once you have completed all mandatory courses, there is a final exam to take.

The passing grade of the final exam is 70%. The CFI recommends studying the course material for several months before taking the final exam to give yourself the best chance for success. You earn your FMVA certificate after finishing the final exam.

Why get a financial modelling certificate?

Listed below are several reasons to get a financial modelling certification:

Improve your credentials

Whether you're looking for a new job or trying to get a promotion at your current one, improving your resume with better credentials is a significant advantage. Getting an FMVA certificate can benefit your resume and your professional prospects. It can make your application more appealing to the employer and make you a more competitive candidate in the job market. Improving your credentials often has positive effects and can provide more opportunities in your chosen career.

Increase your salary

Getting a financial modelling certification can lead to an increase in annual salary. According to Indeed Canada, a financial modeller has an average salary of $80,713 per year, compared to a financial analyst whose average salary is $58,034. This is a significant increase that is achievable by obtaining an FMVA. While salaries can vary, an FMVA can lead to a pay increase, increasing job satisfaction, reducing financial stress, and improving mental wellbeing.

Learn new skills

Whether you've been working in the financial field for a long time or just started your career, getting a professional certification is a great way to improve your current skills and learn some new ones. Learning new skills can increase your happiness, providing a sense of accomplishment. It can also make you more efficient in the workplace and show management that you're ready for more responsibilities. An FMVA can teach you many new financial skills and help you become even more proficient in the financial field.

Improve your confidence at work

Becoming better at your job can translate to more confidence and business opportunities. Obtaining professional certificates can give you more confidence because of your increased skill level. Confidence in the workplace promotes creating new relationships, displaying to management that you're ready for a promotion, and can increase your job satisfaction. Having confidence in your financial skills can help you become an integral part of new projects and explore different financial work at your job.

Related: 5 Personal Development Tips to Progress Your Career

Increase chance of getting a promotion

Most kinds of career development can lead to more opportunities in the workplace. Receiving an FMVA can increase your chances of a promotion. When you get an FMVA, you become more knowledgeable, more qualified, and more skilled at your job. All these qualities make you a more competitive candidate when it comes time for management to promote people. By continuing to learn and improve yourself in your field, you display that you have ambition and you're eager to move ahead.

Related: How to Ask for a Promotion at Work (Guide and Tips)

Careers options with a financial modelling certificate

Below is a list of some careers options for a person with a financial modelling certificate:

Investment banking

With a financial modelling certificate, you can find a rewarding career in investment banking. This career path focuses on creating capital for other companies or corporations. Investment bankers do this through underwriting equity, assisting in mergers and acquisitions, brokering trades between entities, and many other means. Investment banks work to assist companies and other institutes in dealing with their large financial proceedings.

Related: How to Start an Investment Banking Career in 4 Steps

Financial planning and analysis (FP&A)

A financial planner and analyst plays a significant role in creating a company's budget, drafting financial forecasts, and conducting analyses on the company's financial records. These tasks can help influence executive decisions when making plans for the company. Someone who works with an FP&A team helps to manage the company's spending and cash flow, which helps ensure the company isn't overspending and that it's generating enough money to cover its expenses. The role of FP&A is critical to the long-term success of many companies.

Corporate development

With a financial modelling certificate, you can work as a part of the corporate development team at a company. The corporate development team is responsible for growing a corporation. The corporate development team does this through strategic planning that involves acquisitions and mergers, creating professional partnerships, and creating opportunities for professional growth. Corporate development helps a company to stay competitive in its field through innovation and change. They also focus on financial models that forecast future earnings to assess investments and financial allocation.

Equity research

Companies and investment firms employ equity researchers to analyze portfolios and provide advice on current investments and future trends. A researcher looks at the current market trends, how a particular stock has been performing, and various investment strategies to help develop models that can help minimize investment risks in the portfolio. They also help to identify potentially profitable stock by recognizing market patterns and inputting that information into specific equations. Equity research requires a broad knowledge of the stock market, and it can be helpful to be knowledgeable about foreign markets as well.

Treasury

A treasury is responsible for financial matters in a particular company. This can be a non-profit organization where the treasury handles income from fundraising events, or they can work for a large corporation and manage the money from daily transactions. Their job can include financial planning, creating financial reports, book-keeping, and managing investments. A treasury works with many different sections of a business while assisting the company in keeping its financial plans on track.

Please note that none of the companies, institutions, or organizations mentioned in this article are affiliated with Indeed. Salary figures reflect data listed on Indeed Salaries at time of writing. Salaries‌ ‌may‌ ‌‌vary‌‌ ‌depending‌ ‌on‌ ‌the‌ ‌hiring‌ ‌organization‌ ‌and‌ ‌a‌ ‌candidate's‌ ‌experience, ‌‌academic‌ background‌, ‌and‌ ‌location

Explore more articles