Mastering Financial Modeling: A Step-by-Step Guide to Become Financial Modeling Experts in Singapore

Given its indisputable importance in various industries, a financial modeling course is worth considering. It has proven effective for multiple professionals in fields such as finance, corporate finance, and investment banking, to mention a few. It is one of the reasons why financial modeling classes are becoming quite popular, especially in Singapore. It is no secret that Singapore is recognized as a financial hub globally. Mastering advance financial modeling is one of the best ways of fitting in such an environment. You acquire the skills you need for successful business opportunities and lucrative jobs with competitive salaries. That brings us to what this piece is about. It leaves no stone unturned regarding mastering this financial course. So, without further ado, let’s delve into its essential components, including a Step-by-Step Guide becoming financial modeling experts in Singapore. Check it out!

About Financial Modeling in Excel Course

Before delving into project financial modeling courses, let’s discuss its concept. A financial model is a mathematical representation of how a company performs financially. Similarly, financial modeling is the mastery of creating these models. Given their crucial role in company valuation, forecasting, and decision-making, they require significant skills. Do you see the dire consequences that a flawed financial model can do to a company? You need to know how to use various formulas, historical data, and relevant assumptions to develop these models. That’s where an excellent financial modeling course comes in.

Financial Modeling
Boost your career with an advanced financial modeling course—learn practical skills with a financial modeling course with certificate from Riverstone Training. Explore Excel courses for financial analysts and master valuation techniques.

How will we help you achieve your finance career and business career advancement goals?

The best way to learn financial modeling is through a Riverstone financial modeling short course that offers practical, real-world experience.

Course Specialization and Content

Our financial modeling course aligns with specific industries. We offer variations, including investment banking, project finance, and real estate financial modeling.

Credibility and Certification

We are recognized for offering credible financial modeling programs, and we offer learners certification upon course completion.

Practical Training

Thanks to the case studies, hands-on projects, and real-world applications we offer for practical training, learners are ready for the world.

Professional Trainers

Subject matter experts with 20+ years of industry experience

Up-to-date Content

Industry driven course content designed by domain experts

Multiple Training Formats

Classroom style, Live online classes or On-demand courses

Industries and business plan and modeling requirements

The best way to learn financial modeling is through an advanced financial modeling course designed to help industries like manufacturing, finance, energy, real estate, etc, to optimize their financial strategies.

  • Energy & Utilities financial modeling
  • Real Estate financial modeling
  • Technology & SaaS financial modeling
  • Financial Services financial modeling
  • Project finance modelling training
  • Manufacturing & Industrial financial modeling
  • Water Services financial modeling
  • Healthcare & Pharmaceuticals financial modeling
  • Retail & E-Commerce financial modeling
  • Venture capital financial modeling course

A Step-by-Step Guide to Become Financial Modeling Experts in Singapore

Having understood financial modeling, its importance, and the key components of these models, we can delve into how to become an expert in the field. The steps to follow include the following;

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project finance modelling

Step 1: Understand Key Accounting Principles of Financial Modeling

It is hard, if not impossible, to be good at financial modeling if you are unaware of accounting fundamentals. Some of the key accounting principles to consider are as follows;

  • Accrual vs. Cash Accounting: Which revenues have been earned, and which expenses have been incurred? You need to differentiate between money received and money spent easily.
  • Consolidation Accounting: If the company has subsidiaries, one should also handle their financial statements and transactions.
  • Deferred Liabilities and Tax Assets: Understand and display the company's tax implications in the financial models.
  • Amortization and Depreciation: How does the cost of the company's assets change over time, and how does that affect its financial statements?
  • Financial Statement Analysis: As you work with assumptions when making financial models, analyze its financial statement effectively enough to extract guiding insights. Otherwise, the models will be misguided, thus misinforming the company and its stakeholders.
  • International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP): Financial reporting and its disclosure counterpart follow specific policies and are the frameworks with which to comply.
  • Non-Recurring Events: Life's surprises could see a company make unexpected gains or losses. Other events usually occurring on a blue moon include restructuring costs and asset write-offs. It is crucial to identify these events since they impact financial reports significantly. Interestingly, only competent financial professionals note them.
  • Recognizing Revenue: Various industries record revenue generated differently. Knowing the most appropriate approach for each case is up to you. After all, some businesses offer goods while others offer services, and that can lead to a difference when revenue is recognized.

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project finance modelling

Step 2: Learn Excel for Financial Modeling

You must master financial modeling in Excel since that’s a primary tool when creating these models. Some of the key Excel skills to master include the following:

  • Advanced Functions and Formulas: Understand even the complex formulas and functions, including SUMIFS, XLOOKUP, array formulas, IFERROR, and INDEX-MATCH.
  • Data Visualization: Use Excel to create insightful dashboards, charts, and graphs relevant to various parties, including stakeholders, executives, and clients, to mention a few.
  • Error-Checking Techniques: Use Excel Error Checking functions or audit tools, including Trace Precedents or Dependents.
  • Financial Model Structuring: Create financial models with the right structures while formatting them excellently. Besides, it involves modular calculations and organizes them logically to ensure they are as dynamic as possible.
  • Pivot Tables: You will most likely handle large datasets, and if you want to do so efficiently, you better utilize the Excel pivot tables.
  • Sensitivity and Scenario Analysis: As you analyze sensitivity and scenarios, do so through Solver, Goal Seek, and Data Tables.
  • VBA and Macros: There is no need to keep doing repetitive tasks when you can automate them using VBA and Macros. Use them to enhance the efficiency of these financial models.

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financial modeling course

Step 3: Build a Simple Financial Model

Use the following steps to steps to create simple financial models;

  • Gather the relevant financial data by benchmarking the industry and referring to financial statements for historical data.
  • Identify the calculations, assumptions, and outputs to set up the financial model structure. Each one of the elements should have its sections.
  • Identify appropriate expense and revenue drivers and use logic formulas to project revenues and expenses.
  • Integrate the three crucial financial statements excellently. The trio includes cash flow statements, income statements, and balance sheets.
  • Predict the company's financial performance using growth assumptions and historical trends.
  • Test your financial model and validate it to guarantee accuracy and consistency.
  • Ensuring the financial model is visually appealing, well-formatted, and presented well for readability and clarity. Otherwise, decision-makers may have a hard time interpreting the data.

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financial modeling course

Step 4: Master Advanced Financial Modeling Methods

Even a free financial modeling course can teach you advanced modeling techniques, including the following;

  • Advanced Excel Automation: Financial modeling in Excel requires you to utilize techniques such as VBA and Macros to enhance while simplifying financial models.
  • Dynamic Scenario Analysis: This involves adjusting your financial model automatically depending on the market conditions at any given time.
  • Industry-Specific Models: Whereas there are common concepts, project finance modeling may differ from real estate financial modeling. In that regard, pick a financial modeling certification that is ideal for the industry you wish to join. If you do a general one, always consider the company's industry at any given point to ensure you develop tailored financial models. That will enhance efficiency and accuracy.
  • Leveraged Buyouts (LBO) and Mergers & Acquisitions (M&A): It is no secret that the pair involves complex financial deals. Master their complicated transactions to handle them effectively.
  • Sensitivity Analysis and Discounted Cash Flow (DCF): The best financial modeling course should touch on these valuation techniques. They allow you to test various assumptions and scenarios, thus improving accuracy.
  • Three-Statement Model Integration: The financial models should be dynamic, thus changing automatically with changes in assumptions and inputs.

Key Components of Financial Models

As you create financial models that will function excellently, you must remember the key components that make them efficient and effective. They include the following;

Historical Financial Statements

You can only predict a company’s performance if you have an idea of how it has performed in the past. That’s where historical financial statements come in, and they include the following;

  • Balance Sheet shows the company’s shareholder equity, assets, and liabilities.
  • Cash Flow Statement: You use the statement to assess liquidity by tracking the company’s financial inflows and outflows.
  • Financial Ratios are key indicators for analyzing a company’s financial health. Excellent examples include leverage ratios, Return on Assets (ROA), Return on Equity (ROE), and EBITDA margins.
  • Income Statement: As the name suggests, the statement displays the expenses, revenue, and profit of a company within a certain period.

Why Choose Us?

Step 1 : Understand Key Accounting Principles

It entails Accrual vs. Cash Accounting, Consolidation Accounting, Deferred Liabilities and Tax Assets, Amortization and Depreciation, Financial Statement Analysis, IFRS & GAAP Compliance, Recognizing Revenue and Non-Recurring Events.

Step 2 : Learn Excel for Financial Modeling

Master Advanced Functions & Formulas, Data Visualization, Error-Checking Techniques, Financial Model Structuring, Pivot Tables, Sensitivity & Scenario Analysis and VBA & Macros

Step 3

Build a Simple Financial Model, Gather financial data, Structure the model with assumptions and outputs, Identify revenue and expense drivers, Integrate financial statements, Forecast financial performance, and Validate and format the model.

Step 4 : Master Advanced Modeling Methods

Expect Advanced Excel Automation, Dynamic Scenario Analysis, Industry-Specific Models, Leveraged Buyouts (LBO) & Mergers & Acquisitions (M&A), Sensitivity Analysis & Discounted Cash Flow (DCF) and Three-Statement Model Integration.

Step 5 Gain Practical Experience

Work on case studies and real-world financial statements, Participate in internships, freelancing, and competitions, Engage in open-source projects, and Practice investment modeling.

Step 6 Stay Updated & Expand Knowledge

Enhance financial modeling skills, Join financial modeling forums and communities, Explore new software and tools, Network with professionals, Follow financial news and market trends, Read books and blogs, and listen to podcasts.

Assumptions and Drivers

Everything that has to do with forecasting has assumptions, and financial models aren’t an exception. However, these assumptions shouldn’t be far-fetched lest you predict wrongly. Fortunately, good research can avoid such occurrences. Business drivers are also crucial since they affect a company’s future performance. The standard assumptions of business drivers in financial modeling include:

  • Capital Expenditures (CapEx): Investments in technology, equipment, and property, among other similar assets.
  • Cost Structures: The estimate of variable and fixed costs that can impact the company’s profit.
  • Macroeconomic Factors: Things that affect financial projections, such as economic policies, inflation, exchange rates, and interest rates.
  • Revenue Growth Rate: One projects this rate while factoring in market conditions, industry benchmarks, and past trends.
  • Working Capital Assumptions: Inventory turnover, receivables, and payables fall under this category.

Financial Projections

Financial projections work hand in hand with the assumptions when predicting how a company will perform as we advance. Some of these financial projections include the following;

  • Debt and Equity Considerations: What’s the possible scenario for equity dilution? What about loan repayment plans and financing strategies? That’s what these financial projections assess.
  • Expense Estimations: How much will the company spend on administrative expenses, operating costs, and salaries? Financial projections can also predict these expenses.
  • Free Cash Flow Analysis: What free cash remains once you have paid the operational cost and incurred the capital expenditures? An ideal financial model evaluates that accurately.
  • Profit and Loss Projections: How much will the company gain or lose over time? That’s the role of such projections.
  • Revenue Forecasting: Equally important, there is a need to forecast the revenue the company can raise. One uses its competitive edge, industry trends, and past data to estimate these sales.

Step 1

Understand Key Accounting Principles

1

It entails Accrual vs. Cash Accounting, Consolidation Accounting, Deferred Liabilities and Tax Assets, Amortization and Depreciation, Financial Statement Analysis, IFRS & GAAP Compliance, Recognizing Revenue and Non-Recurring Events.

Step 2

Learn Excel for Financial Modeling

2

Master Advanced Functions & Formulas, Data Visualization, Error-Checking Techniques, Financial Model Structuring, Pivot Tables, Sensitivity & Scenario Analysis and VBA & Macros.

Step 3

Build a Simple Financial Model

3

Build a Simple Financial Model, Gather financial data, Structure the model with assumptions and outputs, Identify revenue and expense drivers, Integrate financial statements, Forecast financial performance, and Validate and format the model.

Step 4

Master Advanced Modeling Methods

4

Expect Advanced Excel Automation, Dynamic Scenario Analysis, Industry-Specific Models, Leveraged Buyouts (LBO) & Mergers & Acquisitions (M&A), Sensitivity Analysis & Discounted Cash Flow (DCF) and Three-Statement Model Integration.

Valuation techniques applied in Financial models

You need valuation methods to calculate the company’s value, and that’s where these techniques come in. The most common ones are;

  • Comparable Company Analysis (CCA): This valuation method identifies key metrics relevant to a specific industry. After that, you will value one company using similar companies using these metrics. The assumption is that similar companies in the same industry have the same value to some extent.
  • Discounted Cash Flow (DCF): One uses the cash flows the company expects in the future to calculate its current value.
  • Internal Rate of Return (IRR) and Net Present Value (NPV): If you want to make an investment decision, these two methods have proven to be ideal valuation techniques.
  • Precedent Transactions: One uses previous mergers and acquisitions to find valuation multiples for new deals.
  • Sensitivity Analysis for Valuation: It assesses how different assumptions affect the value of a company. It is a suitable approach since the future can be unpredictable.

Sensitivity and Scenario Analysis in Financial model Analysis

A financial mobile must be robust enough to assess all possibilities, including the extreme cases. Various scenarios are as follows;

  • Base Case, Best Case, and Worst Case: It evaluates a company’s financial performance under different conditions that often impact the outcomes.
  • Monte Carlo Simulations: The simulations will create real-like scenarios capturing all possibilities while displaying the financial status at any point.
  • Stress Testing Financial Outcomes: Understanding potential risks by testing extreme economic situations. It is all about risk management as it creates a company’s worst possible financial positions and tests how resilient it can be under such circumstances.
Financial Modeling

Essential Financial Modelling Application in Business

Learn how to financial model and explore the application of financial models in areas such as investment analysis, budgeting, and risk management to make data-driven decisions.

  • Budgeting & Cost Analysis
  • Business Valuation Modeling
  • Debt & Capital Structure Advisory
  • Financial Planning & Forecasting
  • Industry-Specific Financial Modeling
  • Investment & Fundraising Models
  • Mergers & Acquisitions (M&A) Modeling
  • Project Finance Modeling
  • Restructuring & Turnaround Modeling
  • DCF Valuation Modeling

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We Make Financial Modelling As Simple and As Helpful As Possible

The answer is a resounding yes, and the demand for financial modeling is indisputable. That’s especially true in corporate strategy, private equity, finance, and investment banking. After all, they rely on data to make decisions that impact business operations, growth, and success.
The best financial modeling course depends on the skills you seek and the industry you work in. Regardless of your choice, ensure its certifications are industry-recognized. An excellent example is our real estate financial modeling program.
Our financial modeling course is self-paced, so you can take as much time as you wish. Dedication lets you get the basics within a month, while a strong foundation demands 3 to 6 months of practice. With the proper foundation, you can master it quickly over time.
It is as simple as enrolling in a financial modeling program. An ideal one teaches you everything you need to know, including financial statements, Excel skills, and accounting principles. Besides theory, practice with financial models and actual data is also necessary.

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