What is financial modelling? A financial model involves building financial models from scratch or maintaining and updating the existing one as to construct a financial representation of the financial condition of a financial security or a company. It is used to calculate, estimate and forecast financial numbers.

Some might ask – what kind of skills do you need in order to build an efficient financial model that produces accurate and dependable results?

Well, we have prepared a list of skills that you need to achieve that:

Equip yourself with accounting knowledge

This is the most fundamental part of building a financial model. Building a financial model requires using financial information given in a company’s financial report. You have to understand some of the basic accounting terms such as revenues, expenses, assets, liabilities, income statement, balance sheet, and cash flow statements. Also,

Know how to interlink the...