Excel Skills for Financial Modeling; What Are They?

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Excel Skills for Financial Modeling What Are
They?
Excel is the backbone for Financial Modeling.
Anyone working in finance or accounting sector
knows the importance of this tool and how it has
made their life a little easier. The spreadsheet
format is used by many organizations, all around
the globe. Companies often hire individuals who
are well versed with the functionalities of
Advance Excel, but do you have the skills to
become a master in Financial Modeling? This
article is all about Excel and what skills are
required for preparing a financial model. What
is Financial Modeling? Financial Modeling is a
mandatory skill for anyone who wants to grow
their career in the finance sector. It is the
process of summarizing an organizations expenses
and earnings to predict the future events or
decisions. An investment banker can use the
financial model to analyze the companys stock
performance on the basis of current or future
events. It is also used to strategize
experimenting on various scenarios, calculating
the budget and to compare your organizations
progress with your competition. Excel for
Finance Microsoft Excel was launched in 1985 with
the version 2.05. It is the most commonly used
analytical tool for finance, all over the world.
It will be the first and the most utilized tool,
since the beginning of your career. The data
procured from the spreadsheet can be used by the
investors to advance their investment portfolio
and researching the finance market. Advance
excel might sound easy but, it involves a lot of
complex functions that are needed to perfect
your financial model. You will deal with huge
data sets every day
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• and without knowing the functions itll become a
  little tough for you to handle the pressure.
  Dont worry, Ill help you out with it. This
  article further explains the Excel skills
  required to present a well prepared financial
  model.
• Top 5 Excel Skills for Financial Modeling
• Now, you know the importance of using advance
  excel functions to prepare a financial model.
  Lets dive into the skills required to perform
  any given tasks without wasting your time.
• LOOKUP- VLOOKUP and HLOOKUP are the most commonly
  used functions of excel and you might have to
  use it a little too often. VLOOKUP helps you in
  looking up more than one file and combining the
  data together vertically, according to the give
  instructions. H in HLOOKUP stands for horizontal
  and searches the value according to the rows
  selected.
• Index Match- It is very similar to the LOOKUP
  function as, it also helps in searching and
  combining data from more than one spreadsheet.
  The only difference being, Index Match allows
  you to select multiple rows or columns whereas
  LOOKUP only allows one input at a time.
• VBA Macros- Macros is one of the most useful
  functions of excel. It allows you to record
  actions from one file and then apply the same on
  another files. Having a little knowledge about
  VBA programming will help you create multiple
  macros without any trouble.
• IF Functions- This functionality works on the
  basis of logical conditions and is very
  straightforward. It processes a logical test and
  gives the result as either true or false, for
  the given value.
• Pivot Tables- Pivot tables are convenient and
  helps you save time. This effective function
  assists in filtering the data according to your
  set conditions. If you want exact outputs of a
  given value, then a pivot table will allow you to
  see the results you needed, from a data set that
  has various inputs.
• Advance excel and financial modeling go hand in
  hand. It becomes very important for any
  individual to acquire the skills to prepare an
  insightful financial model. These techniques
  will help you in becoming better at your job, one
  day at a time.
• Resource https//www.linkedin.com/pulse/excel-ski
  lls-financial-modeling-what- jennifer-smith