Financial Modeler's Corner

Welcome to the Financial Modeler's Corner (FMC), where we discuss the Art and Science of Financial Modeling with your host Paul Barnhurst.

Financial Modeler's Corner is sponsored by the Financial Modeling Institute (FMI), the most respected accreditation in Financial Modeling globally.

Raphael Benhamou, an independent consultant and fractional CFO explores the art and science of financial modeling. Raphael shares his experiences, insights, and a few horror stories from his extensive career, highlighting the importance of operational understanding and the advantages of using modern tools like Causal for financial modeling.

Sample Causal Financial models if you want to review how Causal works:

• Subscription Model - https://www.benhamouconsulting.com/subscription-saas-revenues

• Pipeline Model - https://www.benhamouconsulting.com/pipeline-saas-revenues

Key takeaways from this week's episode include:

• Raphael emphasizes the critical need for regular audits of financial models to prevent errors and ensure accuracy. He shares a horror story about a model that wasn't audited for five years, leading to significant financial discrepancies.

• While Excel is known for its flexibility, Raphael discusses the trade-offs of using more structured tools like Causal, which can help reduce errors and provide more insightful analysis through its object-oriented approach and natural language variables.

• The importance of integrating operational data with financial models to provide actionable insights. He stresses that understanding business operations is crucial for building effective and useful models.

• Raphael shares his journey from using traditional Excel spreadsheets to adopting Causal, a modern financial modeling tool. He explains how Causal's dynamic dashboarding, probability distribution modeling, and seamless integration with other systems offer significant advantages over Excel.

• The discussion focuses on the potential of AI in financial modeling, Raphael notes that while AI can build models, the real question is whether it should. He also touches on the importance of human judgment and expertise in interpreting and using these models effectively.

Quotes:

Here are a few relevant quotes from the episode on financial analysis and modeling:

"My perspective on this is what I was saying earlier about operating connecting to finance. I think to be a good financial modeler, you need to have a good understanding of what what's going on in the business as well, not just at the finance level.”- Raphael Benhamou

“It gave me a great grounding in best practices for modeling across all modeling platforms, especially Excel. Because one of my big nitpicks with Excel and Google Sheets is that it's too freeform.”- Raphael Benhamou

This episode provides valuable insights into the evolving landscape of financial modeling. The discussion sheds light on the benefits of modern financial modeling tools like Causal, the necessity of regular audits, and the critical role of understanding business operations. Whether you're a seasoned financial modeler or just starting, this episode offers practical advice and thought-provoking perspectives on how to enhance your financial modeling practices.

Sign up for the Advanced Financial Modeler Accreditation Today and receive 15% off by using the special show code ‘Podcast’. Visit www.fminstitute.com/podcast and use code “Podcast” to save 15% when you register. 

 Follow Raphael:

• LinkedIn - https://www.linkedin.com/in/raphaelmibenhamou/
• Website - https://www.benhamouconsulting.com/

 Follow Paul: 

• Website - https://www.thefpandaguy.com   
• LinkedIn - https://www.linkedin.com/in/thefpandaguy  
• TikTok - https://www.tiktok.com/@thefpandaguy  
• YouTube - https://www.youtube.com/@thefpaguy8376 

Follow Financial Modeler's Corner  

• LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  

• Newsletter - Subscribe on LinkedIn- https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984

In today’s episode:

[00:03] - Introduction

[01:01] - Guest Introduction

[03:47] - Key Takeaways from the Horror Story

[04:55] - Guests’ Background

[07:13] - Introduction to Causal

[08:03] - Transition to Finance

[12:29] - Love for Modeling

[14:00] - Early Career and Tools

[17:46] - Flexibility vs. Structure

[23:50] - Types of Models Built in Causal

[39:43] - Rapid-Fire Session

[48:12] - Get to know the guest

[49:46] - Conclusion

Welcome to the Financial Modeler's Corner (FMC), where we discuss the Art and Science of Financial Modeling with your host Paul Barnhurst.

Financial Modeler's Corner is sponsored by the Financial Modeling Institute (FMI), the most respected accreditation in Financial Modeling globally.

In today’s episode, Paul engages in a conversation with Brian Vaddan.

Brian Vaddan is a distinguished financial modeler with a rich background in investment banking and financial engineering. His emphasis on intellectual curiosity, the need for simplicity, and the creative nature of financial modeling provide listeners with a fresh perspective on the discipline.

Key takeaways from this week's episode include:

• A distinction between those who use spreadsheets casually and those who build models as a core discipline. He emphasizes the importance of creating models that are understandable and usable by others, akin to the difference between a sketch artist and an architect.

• Intellectual curiosity, an almost obsessive desire to solve problems, and the ability to bring structure out of chaos are highlighted as key traits for successful financial modelers. Brian stresses that these traits are more critical than technical skills alone.

• One of the profound insights shared is the importance of simplifying complex problems. Brian believes that the true measure of a modeler’s intellect is their ability to present complex ideas in a straightforward and understandable manner.

• Financial modeling is described as a deeply creative exercise. Brian compares it to art, where each model reflects the modeler’s thought process and experiences, much like an artist’s painting.

• Brian shares his experience transitioning from being a modeler to managing a team. He discusses the challenges of letting go and empowering others, and the iterative learning process involved in both building and reviewing models.

Quotes:

Here are a few relevant quotes from the episode on financial analysis and modeling:

"I guess, the easiest way for me to describe it is the difference between somebody who sketches on paper and someone who's an architect, or someone who has a hammer and someone who's an actual carpenter.”- Brian Vaddan

“One of the primary differences is that you will do it for someone else. So when I built a lot of the initial models from the earlier part of my career, it was for me. It was to derive an answer that I needed to a question that was asked of me.”- Brian Vaddan

“The way you display the depth of your intellect, to me, is not the complexity in the formula that you build, but how you take that complex formula and simplify it into a manner that anyone with just a basic understanding can understand.”- Brian Vaddan

“Never stop learning and don't quench that intellectual curiosity that will make your modeling experience and career so much richer and so much more rewarding.”- Brian Vaddan

In this engaging episode of Financial Modeler's Corner, Brian Vaddan shares his insights on the intricacies of financial modeling. He recounts his journey from investment banking to EY, emphasizing the importance of intellectual curiosity and perseverance. He advises aspiring modelers to maintain a growth mindset and continually seek learning opportunities, providing valuable insights into the discipline of financial modeling.

Sign up for the Advanced Financial Modeler Accreditation Today and receive 15% off by using the special show code ‘Podcast’. Visit www.fminstitute.com/podcast and use code “Podcast” to save 15% when you register.  

Go to https://earmarkcpe.com, download the app, take the quiz and you can receive CPE credit. 

View and download the Financial Modeling Code at financial-modelling-code.ashx (icaew.com)

Follow Brian:

• LinkedIn - https://www.linkedin.com/in/brian-vaddan-62ba7325/

Follow Paul: 

• Website - https://www.thefpandaguy.com   
• LinkedIn - https://www.linkedin.com/in/thefpandaguy  
• TikTok - https://www.tiktok.com/@thefpandaguy  
• YouTube - https://www.youtube.com/@thefpaguy8376  

Follow Financial Modeler's Corner  

• LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  
• Newsletter - Subscribe on LinkedIn- https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984

In today’s episode:

[00:03] - Introduction

[01:00] - Guest Introduction

[01:14] - Horror Story

[03:40] - Rule of Thumb

[04:10] - Guests’ Background

[06:28] - Spreadsheets vs. Modeling

[10:16] - Essential Traits for Modelers

[13:30] - Modeling as a Discipline

[19:00]  - Simplicity in Complexity

[24:00] - Modeling as a Creative Exercise

[28:10] - Transition to Team Leadership

[33:00] - Rapid-Fire Session and Guests’ Contact Information

[38:10] - Conclusion

Welcome to a special episode of our podcast! Today, we're thrilled to bring you an exciting Podswap. Stay tuned for an engaging conversation you won't want to miss. Here are the show notes from our previous episodes.

TLDR: These show notes were optimized using Claude AI Haiku and are designed to make you listen to the full episode. We even asked Haiku to provide a Haiku summarizing the show notes for your reading pleasure.

Haiku:

Finance takes new shape,

AI-driven transformation,

Shaping the future. 

Prepare to be captivated as hosts Paul Barnhurst and Glenn Hopper welcome Sasha Orloff, CEO of Puzzle, to uncover the technological advancements reshaping the world of finance and accounting. In this eye-opening episode, you'll discover:

- How generative AI is seamlessly integrating into everyday software, automating tasks and delivering data-driven insights.

- The rise of "AI agents" in 2024 - advanced systems designed to autonomously process complex problems and provide tailored solutions.

- Sasha's visionary project, Puzzle, modernizing accounting software with real-time, flexible financial data processing.

- The transformative potential of blockchain technology to enhance transparency and traceability of financial transactions.

- The future of finance is reimagined through AI and predictive analytics, empowering more precise forecasting and strategic decision-making.

Sasha shares his insightful perspective:

- "I'm building Puzzle, which is modern accounting software for growing companies."

- "We may not yet be at a point where AI is going to take our jobs, but the future will be divided into two camps: people who use AI and those who don't. One of these groups is going to be left behind."

Don't miss this captivating conversation that explores the intersection of finance, technology, and AI. Gain invaluable insights to stay ahead of the curve and thrive in the rapidly evolving world of corporate finance.

Follow the Conversation:

• Glenn Hopper (LinkedIn: https://www.linkedin.com/in/gbhopperiii)

• Paul Barnhurst (LinkedIn: https://www.linkedin.com/in/thefpandaguy)

• Sasha Orloff (LinkedIn: https://www.linkedin.com/in/saor/)

• Puzzle (LinkedIn: https://www.linkedin.com/company/puzzlefin, Website: https://puzzle.io)

Future Finance is sponsored by Qflow.ai. Learn more at Qflow.ai/future-finance.

Financial Modeler’s Corner is sponsored by the Financial Modeling Institute. Learn more at https://fminstitute.com/podcast/.

In today's episode:

[01:52] Introduction

[03:30] The latest phase of the AI revolution

[04:49] Pros and cons of chatbots and the rise and evolution of AI agents

[09:15] Recent updates about AI

[12:51] Guest’s background

[14:00] Insights from guest’s career

[16:35] Introduction of Puzzle and future of general ledger in accounting

[25:10] How blockchain can be an effective tool for accounting

[30:22] How AI and predictive analytics can change finance in upcoming years

[34:32] Democratization of data science and various uses of machine learning

[39:05] Lighting Round Questions

Welcome to the Financial Modeler's Corner (FMC), where we discuss the Art and Science of Financial Modeling with your host Paul Barnhurst.

Financial Modeler's Corner is sponsored by the Financial Modeling Institute (FMI), the most respected accreditation in Financial Modeling globally.

In today’s episode, Paul engages in a conversation with Cameron and Nicholas Hay to discuss dynamic arrays in financial modeling. Cameron and Nicholas share their experiences and insights on using dynamic arrays to build fully dynamic models, avoiding common pitfalls, and the benefits of this approach.

Cameron and Nicholas are seasoned financial modeling experts and co-founders of Finomatic Consulting. Their practical advice and innovative tips have helped countless professionals enhance their modeling skills.

Key takeaways from this week's episode include:

• Use dynamic arrays to reduce the number of formulas and potential error points. Clearly separate inputs, calculations, and outputs into distinct sheets. This enhances clarity and ease of use.

• Ensure uniform column and row structures across sheets. This consistency minimizes errors and simplifies formula management, making models easier to audit and understand.

• Mixing traditional Excel formulas with dynamic arrays reduces the benefits. A complete commitment ensures better performance and error reduction.

• Using graphs and charts helps quickly identify trends and anomalies, making it easier to ensure realistic assumptions and accurate models.

• Establishes a solid foundation, ensuring you learn best practices early on, which prevents the development of bad habits and enhances overall modeling skills.

• Implementing dynamic arrays can drastically reduce the file size and complexity of models, making them more efficient and manageable.

• Issues like mixed calculations and unrealistic assumptions emphasize the importance of thorough checks and realistic inputs in financial modeling.

Download a sample fully dynamic 3-statement model Excel Files — The FP&A Guy (thefpandaguy.com) courtesy of Cameron and Nicolas Hay. 

Quotes:

Here are a few relevant quotes from the episode on financial analysis and modeling:

"A blank Excel workbook doesn't have any errors in it until you add data and formulas. Minimizing the number of formulas should reduce the error potential of the file.”

“With business, if you can understand how cash flows around a business, that's you can get in and really understand a business.”

“If you're going to dip your toe into dynamic arrays, you've got to make sure you commit fully with 100% commitment.”

Sign up for the Advanced Financial Modeler Accreditation Today and receive 15% off by using the special show code ‘Podcast’. Visit www.fminstitute.com/podcast and use code “Podcast” to save 15% when you register.  

Go to https://earmarkcpe.com, download the app, take the quiz and you can receive CPE credit. 

View and download the Financial Modeling Code at financial-modelling-code.ashx (icaew.com)

Follow Cameron and Nicholas:

• Cameron Hay LinkedIn - https://www.linkedin.com/in/cameron-hay-ca-a31b4752/
• Nicholas Hay LinkedIn- https://www.linkedin.com/in/nicholas-hay-1992/
• Website - https://finomatic.co.uk/

 Follow Paul: 

• Website - https://www.thefpandaguy.com   
• LinkedIn - https://www.linkedin.com/in/thefpandaguy  
• TikTok - https://www.tiktok.com/@thefpandaguy  
• YouTube - https://www.youtube.com/@thefpaguy8376  

Follow Financial Modeler's Corner  

• LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  

• Newsletter - Subscribe on LinkedIn- https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984

In today’s episode:

[00:03] - Introduction

[00:40] - Guest Introduction and Theme for the Week: Dynamic Arrays

[01:50] - The Worst Financial Model the Guest Experienced

[02:00] - Horror Stories: Mixed Calculations and Unrealistic Assumptions

[04:10] - Key Takeaways from Horror Stories

[05:00] - Guests’ Backgrounds and Career Journeys

[10:00] - The Importance of Structure and Design in Financial Modeling

[14:10] - Introduction to Dynamic Arrays and Their Benefits

[21:30] - Challenges with Corkscrews and Lambdas

[31:20] - Rapid-Fire Session and Guests’ Contact Information

Welcome to the Financial Modeler's Corner (FMC), where we discuss the Art and Science of Financial Modeling with your host Paul Barnhurst.

Financial Modeler's Corner is sponsored by the Financial Modeling Institute (FMI), the most respected accreditation in Financial Modeling globally.

In today’s episode, Paul engages in a conversation with Gary Knott, to discuss invaluable insights and tips on avoiding common Excel pitfalls, structuring workbooks for success, and the importance of consistency and clarity.

Gary is a seasoned financial modeling expert and author of "Avoid Excel Horror Stories." He shares his golden ground rules for Excel modeling. With a background at Deloitte and his successful consultancy, Gary's practical advice and innovative tips have helped countless professionals enhance their modeling skills.

Key takeaways from this week's episode include:

• Organize workbooks with clear, logical structures. Separate inputs, calculations, and outputs into distinct sheets. Use consistent naming conventions and separator sheets to enhance clarity and ease of use.

• Maintaining a consistent design throughout the workbook. Use uniform column and row structures across sheets. Consistency minimizes errors and simplifies formula management, making models easier to audit and understand.

• Formal training in financial modeling is crucial. It establishes a solid foundation, ensuring you learn best practices early on, which prevents the development of bad habits and enhances overall modeling skills.

• Real-life horror stories highlight common errors, such as improper data copying and pasting. Ensuring consistent data formats and understanding the intricacies of your calculations are essential to avoid costly mistakes.

• Use Macros for repetitive tasks like generating output sheets, not for complex calculations. They help automate processes and reduce manual errors but should be applied judiciously to maintain model integrity.

• Implement data validation to restrict inputs. This minimizes user errors by ensuring only valid data entries are made, such as positive numbers or specific date ranges, enhancing the reliability of your models.

• Regularly test models to ensure accuracy. Use master check sheets to consolidate checks and quickly identify errors. This proactive approach helps maintain the model’s integrity and reliability over time.

Quotes:

Here are a few relevant quotes from the episode on financial analysis and modeling:

"Consistency is key." I think of all the rules there are, that's the one. If you follow that one, that can bring you a long way in terms of getting a reliable model.

“Certainly, getting trained early, not trying to learn it yourself, but taking some formal training course so you can learn the basics.”

“I'm always a very keen fan of putting checks in models, collating them all on a master check sheet, and then adding them all up.”

"If the difference is zero, then your balance sheet balances. You can send that through to a master check sheet. Then if you add them all up, all the checks up and they're totally zero, then you haven't identified any issues"

Sign up for the Advanced Financial Modeler Accreditation Today and receive 15% off by using the special show code ‘Podcast’. Visit www.fminstitute.com/podcast and use code “Podcast” to save 15% when you register.  

Go to https://earmarkcpe.com, download the app, take the quiz and you can receive CPE credit. 

View and download the Financial Modeling Code at financial-modelling-code.ashx (icaew.com)

Follow Gary:

• LinkedIn - https://www.linkedin.com/in/garyknottconsulting/
• Website - https://www.knott-consulting.com/
• Book - Amazon.com: Avoid Excel Horror Stories

 Follow Paul: 

• Website - https://www.thefpandaguy.com   
• LinkedIn - https://www.linkedin.com/in/thefpandaguy  
• TikTok - https://www.tiktok.com/@thefpandaguy  
• YouTube - https://www.youtube.com/@thefpaguy8376  

Follow Financial Modeler's Corner  

• LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  

• Newsletter - Subscribe on LinkedIn- https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984

In today’s episode:

(00:55) - Introduction

(01:40) - Guest Introduction

(01:50) - The worst Financial Model the Guest Experienced

(01:56) - First Horror Story and Mixed Calculations

(02:50) - Second Horror Story and Daisy Chains

(04:06) - Guest’s Career Journey

(05:50) - The Role of Accounting in Financial Modeling

(08:45) - Guest’s Introduction as Author

(10:00) - Golden Ground Rules for Financial Modeling

(14:00) - Importance of Using a Clear and Logical Workbook Structure.

(17:00) - A clean, Consistent Design to Make Models Professional and User-friendly.

(23:10) - Instructions for Users to Ensure They Understand How to Use the Model.

(29:00) - Horror Stories from Financial Modeling

(33:40) - Tips and Tricks and Benefits of Using Power Query

(37:19) - Rapid-Fire Session

(42:10) - Guest's Contact Information

Welcome to the Financial Modeler's Corner (FMC), where we discuss the Art and Science of Financial Modeling with your host Paul Barnhurst.

Financial Modeler's Corner is sponsored by the Financial Modeling Institute (FMI), the most respected accreditation in Financial Modeling globally.

In today’s episode, Paul engages in a conversation with Stephen Aldridge, to discuss developing and implementing Financial Modeling standards and best practices, including insights from his work on the Financial Modelling Code. This conversation is packed with practical advice and fascinating anecdotes.

Stephen, the founder of Numeritas, has over 20 years of experience in Financial Modeling. Stephen has worked with and for top firms like KPMG and Deloitte. With a background in engineering, sales, and corporate management, he offers a unique perspective on Financial Modeling standards and best practices.

Key takeaways from this week's episode include:

• Standards in Financial Modeling ensure consistency and reliability in financial models. Having an agreed-upon approach within a firm allows for seamless transitions when different individuals work on the same model, promoting accuracy and ease of understanding.

• Financial modeling involves various acceptable methodologies, making consensus on best practices challenging. Flexible guidelines, like the Financial Modeling Code, help streamline processes and ensure consistency across different approaches.

• Prototyping in Financial Modeling bridges the gap between modelers and users by creating early mock-ups of input areas. This approach ensures the model meets user expectations and captures necessary inputs accurately, saving time and resources in the long run.

• Human factors, such as biases and assumptions, significantly impact financial modeling. Effective communication and understanding stakeholder interactions are crucial for creating accurate and practical models.

• In implementing Modeling Standards, Firms should adapt modeling standards to their specific needs with a focus on basic principles like avoiding hard coding and maintaining consistency to enhance model quality and reliability.

Quotes:  

Here are a few relevant quotes from the episode on financial analysis and modeling:

Sign up for the Advanced Financial Modeler Accreditation Today and receive 15% off by using the special show code ‘Podcast’. Visit www.fminstitute.com/podcast and use code “Podcast” to save 15% when you register.

Go to https://earmarkcpe.com, download the app, take the quiz and you can receive CPE credit. 

View and download the Financial Modeling Code at financial-modelling-code.ashx (icaew.com)

Follow Stephen:

• LinkedIn -  https://www.linkedin.com/in/stephenaldridge/
• Website - https://numeritas.co.uk/

Follow Paul:

• Website - https://www.thefpandaguy.com   
• LinkedIn - https://www.linkedin.com/in/thefpandaguy  
• TikTok - https://www.tiktok.com/@thefpandaguy 
• YouTube - https://www.youtube.com/@thefpaguy8376  

Follow Financial Modeler's Corner  

• LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  

• Newsletter- Subscribe on LinkedIn- https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984   



In today’s episode:  

(00:50) Introduction

(01:40) Guest Introduction

(01:45) Horrifying Financial Models

(04:10) Approach to Financial Modeling

(05:25) Guest's Background and Career Journey

(08:20) Developing Modeling Standards

(15:09) Divergent Views and Common Agreements

(18:15) Best Practices and Lessons Learned

(24:30) Importance of Prototyping

(28:00) Most Enjoyable Modeling Project

(30:30) Joking on Big Numbers

(33:20) Rapid-Fire Question Round

(44:20) Guest's Advice for Aspiring Financial Modelers

(44:47) Guest's Contact Information

Welcome to the Financial Modeler's Corner (FMC), where we discuss the art and science of financial modeling with your host Paul Barnhurst.

Financial Modeler's Corner is sponsored by the Financial Modeling Institute (FMI), the most respected accreditation in Financial Modeling globally.

In today’s episode, Paul engages in an interaction with Carolina Lago and discusses the essential tips for transforming data into actionable insights and the strategic approach to avoiding common modeling pitfalls. This discussion offers valuable wisdom that will enhance your analytical skills and financial acumen.

Carolina, a seasoned FP&A professional with over 15 years of international experience, shares profound insights from her extensive career, including her role in a significant IPO and leading software implementation across global departments.

Key takeaways from this week's episode include:

• An early career encounter with a poorly designed financial model, filled with hard-coded numbers, underscores the necessity for creating flexible and dynamic financial models that can adapt to changing business needs.

• The discussion highlights the critical need to avoid hardcoded data and external links in financial models, which can lead to rigidity and errors.

• Insights from the financial modeling newsletter and courses show a wide range of professionals benefiting, from newcomers to seasoned directors. This variety demonstrates the widespread need for improved modeling skills.

• The discussion focuses on the importance of transforming data into actionable insights. It's stressed that without the ability to analyze and interpret data effectively, its value is minimal.

• The conversation sheds light on techniques for deriving actionable insights from complex data, crucial for any financial modeler. It also discusses the value of formal certifications like the Advanced Financial Modeler Certification as tools for professional development and skill validation.

Quotes:  

Here are a few relevant quotes from the episode on financial analysis and modeling:

• “I inherited one, and I had to try to change it. I spent probably a couple of weeks trying to make it better, and I couldn't. It was just too full of hardcoded numbers and I had to find everything the way around and no design at all.”

• “The first thing I learned about financial modeling was not to use hard codes and don't link outside of the spreadsheet.”

• “Data is only useful if it can be transformed into actionable insights.”

• “The TACTIC is (Targets, Assets, Calculations, Tools, Insights, and Correlations.) You start with the target which is the question that you need to answer with that financial model.” 

• “That's why I like financial modeling so much because it can transform data into something. So you can make decisions on top of that data.”

Sign up for the Advanced Financial Modeler Accreditation or FMI Fundamentals Today and receive 15% off by using the special show code ‘Podcast’. 

Visit www.fminstitute.com/podcast and use code Podcast to save 15% when you register.  

Go to https://earmarkcpe.com, download the app, take the quiz and you can receive CPE credit. 

Follow Carolina:

• LinkedIn - https://www.linkedin.com/in/s-carolinalago
• Website - https://www.tacticfinancial.com

Follow Paul:

• Website - https://www.thefpandaguy.com   
• LinkedIn - https://www.linkedin.com/in/thefpandaguy  
• TikTok - https://www.tiktok.com/@thefpandaguy  
• YouTube - https://www.youtube.com/@thefpaguy8376  

Follow Financial Modeler's Corner  

• LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  
• Newsletter - Subscribe on LinkedIn- https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984   

In today’s episode:  

(00:04) Introduction

(00:50) Guest Introduction

(01:00) Horrifying Financial Models

(02:00) Insights from Guest’s Early Career Challenges

(03:10) Guest’s Career Journey and Global Experience

(05:00) Turning Data into Actionable Insights

(07:30) Introduction of the Tactic Framework

(09:50) Audience Engagement and Learning Opportunities

(20:00) Certification and Continuing Education

(22:40) Rapid-Fire Round

(24:50) Advice for Aspiring Financial Modelers

(26:00) Contact information to learn more about various modeling techniques and tools.

Welcome to the Financial Modeler's Corner (FMC), where we discuss the art and science of financial modeling with your host Paul Barnhurst.

Financial Modeler's Corner is sponsored by the Financial Modeling Institute (FMI), the most respected accreditation in Financial Modeling globally. https://www.abacum.io

In today’s episode, Paul engages in a conversation with Geoff Robinson, to discuss the financial modeling world, blending technical skills with behavioral economics to enhance decision-making in finance.

Geoff Robinson, founder of TheInvestmentAnalyst.com and seasoned financial modeler with a rich background in investment banking and education, notably as a former managing director at UBS.

Key takeaways from this week's episode include:

• An unconventional entry into investment banking at 43, highlighting how the background in education enriches the approach to financial analysis and modeling, emphasizing the crossover skills between teaching and financial analysis. This highlights how teaching skills are transferable and beneficial in the financial analysis and modeling sectors.
• An anecdote about a significant error in a financial model, which failed to detect a $29 billion discrepancy, underscoring the critical importance of rigorous validation and diagnostic checks in financial modeling.
• In the role of behavioral factors in financial modeling, adopting a stance of professional skepticism and the need for understanding and questioning the assumptions underlying a model before trusting its output.
• For simplicity and planning in financial modeling, the most effective models are those that are straightforward, well-planned, and can communicate complex financial insights in an accessible manner.
• Strategies for mitigating bias, such as incorporating different perspectives and rigorous testing of hypotheses, as the influence of cognitive biases on financial modeling to enhance the reliability of financial models.

Quotes:

Here are a few relevant quotes from the episode on financial analysis and modeling:

"The diagnostic on this model was said if total assets equal total liabilities and equity, okay. So no matter what happened, your balance sheet, even if it was mashed up, the diagnostics said it was fine and when you went into the detail, there was a $29 billion hole in that balance sheet."

"Financial models are a real kind of insight and window into the personality of the modeler. You can see how they think, you can see how they overcomplicate things. You can see if they're sloppy."

“Models are question-asking tools. One of your questions was is it a primary decision maker, a financial model? I don't think models are decision-makers. I think models are the way you test a hypothesis.”

"I suppose the blunt thing to say is don't trust anything until you understand it."

Follow Geoff:

LinkedIn - https://www.linkedin.com/in/geofftheinvestmentanalyst

Website - https://theinvestmentanalyst.com

Follow Paul:

Website - https://www.thefpandaguy.com

LinkedIn - https://www.linkedin.com/in/thefpandaguy

For an experienced-based approach to financial modeling, emphasizing skepticism, the effective communication of complex financial data, and the intersection of analytical rigor, educational techniques, and behavioral economics, visit FMI at www.fminstitute.com/podcast and use code ‘Podcast’ to save 15% when you register. Contact Paul Barnhurst for further details.

In today’s episode:

(01:58) Introduction

(02:44) Guest Introduction

(03:00) Horrifying Financial Models

(04:01) Joking on Big Numbers

(04:24) Approach to Financial Modeling

(05:14) Behavioral Insights in Modeling

(05:56) Best Practices and Lessons Learned

(42:40) Rapid-Fire Question Round

(47.09) Guest's advice for aspiring financial modelers

(47.38) Contact information to learn more about various modeling techniques and tools

Welcome to the Financial Modeler's Corner (FMC), where we discuss the art and science of financial modeling with your host Paul Barnhurst. Financial Modeler's Corner is sponsored by the Financial Modeling Institute (FMI), the most respected accreditation in Financial Modeling globally.

In today’s episode, Paul engages in a conversation with Scott Rostan, Founder of Training The Street.

Scott found his passion for finance with his dedication to teaching and has been driving innovation in financial training ever since. As CEO of Training The Street and as an adjunct professor at UNC Kenan-Flagler Business School, he inspires the next generation of finance professionals

Through his leadership as CEO of Training The Street, Scott has reshaped the landscape of financial education, equipping individuals with the skills and knowledge needed to thrive.

In this episode, expect to learn:

• The significance of technical skills, such as financial modeling, accounting, and Excel proficiency, in the finance industry
• How specialized training programs can help individuals enhance their financial knowledge and technical abilities
• The evolving role of AI in finance and how it complements human expertise rather than replacing it
• The balance between technical proficiency and interpersonal skills to excel in their careers
• How individuals can build trust with clients, colleagues, and stakeholders, ultimately contributing to the integrity and credibility of the finance profession.

Quotes:  

“It's really easy to start throwing stuff together and writing a nasty old nested if formula or whatever it might be, but that doesn't always mean it's clean or effective or meets those requirements we talk about.”

“And when you get good with the prompt engineering typing, questions, and answers, you can get a lot more productive and faster.”

“It's not ideal because circular references can make your model more complex and harder to understand, but in certain situations, they're necessary for accuracy.”

“If you just blindly took the financial information from this database, it could be off by a big factor. So again understanding what's going on, understanding the nuance, understanding the limitations is going to be much more valuable.”

“They're going to trust you and value you to distill what's important and then present it in an easy-to-digest way so that they can understand in simple terms what is happening. The analysis comes from the model, but the story is going to come from you.”

Sign up for the Advanced Financial Modeler Accreditation or FMI Fundamentals Today and receive 15% off by using the special show code ‘Podcast’. 

Visit www.fminstitute.com/podcast and use code Podcast to save 15% when you register.  

Go to https://earmarkcpe.com, download the app, take the quiz and you can receive CPE credit.  

Follow Scott:    

• LinkedIn - https://www.linkedin.com/in/scott-rostan-86b44417a
• Website - https://trainingthestreet.com/

 Follow Paul: 

• Website - https://www.thefpandaguy.com/   
• LinkedIn - https://www.linkedin.com/in/thefpandaguy/  
• TikTok - https://www.tiktok.com/@thefpandaguy  
• YouTube - https://www.youtube.com/@thefpaguy8376  

Follow Financial Modeler's Corner  

• LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  
• Newsletter - Subscribe on LinkedIn- https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984   

In today’s episode:  

[00:45] Introduction;

[01:00] Scott’s horror story of the worst Financial Model;

[01:58] The KISS principle;

[03:53] Scott’s background;

[05:56] Key projects that helped Scott;

[19:17] Training the Street courses;

[21:02] How is AI changing modeling;

[28:59] Skills required for a great modeler;

[42:50] Scott’s favorite Excel shortcut;

[44:18] Rapid fire;

[48:55] Scptt’s final piece of advice;

Welcome to the Financial Modeler's Corner (FMC), where we discuss the art and science of financial modeling with your host Paul Barnhurst. Financial Modeler's Corner is sponsored by the Financial Modeling Institute (FMI), the most respected accreditation in Financial Modeling globally.

In today’s episode, Paul engages in a conversation with Roderick McKinley, blockchain & Tokenomics advisor of Rmckinley.net

Roderick, a crypto expert, discusses financial modeling in the crypto space, highlighting challenges like token volatility and treasury management. He emphasizes aligning incentives for healthy exchanges and discusses his online course on Tokenomics Modeling and fundraising.

Roderick also offers strategic guidance, product development, and Tokenomic design services for various blockchain applications, including DeFi, blockchain games, and Layer 1 protocols. He assists in developing tokenized business models, designing token utilities, and structuring token allocations for successful capital raises.

In this episode, these are your learnings:

• Understand the integration of finance and blockchain and Tokenomics and strategic guidance for blockchain projects.
• Gain insights into challenges and opportunities in transitioning from traditional finance to the crypto space.
• Learn how to navigate complexities like token volatility and incentive alignment in blockchain projects.
• Obtain practical tips on developing tokenized business models, designing token utilities, and structuring token allocations for successful fundraising.
• Acquire valuable knowledge for navigating the evolving landscape of blockchain and cryptocurrency.

Quotes: 

• “Financial modeling often has a lot to do with client and industry expectations. What passes as good work or what passes as enough can change very dramatically from country to country and sector to sector.”

• “Some of the stuff they teach you is that, well, the world's this way because it can't be any other way. And you pass exams sort of like explaining why it's impossible to fix things but suddenly blockchain technology actually gives you a completely different kind of tool chest that opens that up again.”

• “Try and look for the shortest and most efficient way to express your calculations. Try and maximize the speed of your model.”

Sign up for the Advanced Financial Modeler Accreditation or FMI Fundamentals Today and receive 15% off by using the special show code ‘Podcast’.

Visit www.fminstitute.com/podcast and use code Podcast to save 15% when you register.

Go to https://earmarkcpe.com, download the app, take the quiz and you can receive CPE credit.

Follow Roderick McKinley: 

Linkedin: https://www.linkedin.com/in/roderickmckinley

Website: https://rmckinley.net/

Follow Paul:

Website - https://www.thefpandaguy.com/

LinkedIn - https://www.linkedin.com/in/thefpandaguy/

TikTok - https://www.tiktok.com/@thefpandaguy

YouTube - https://www.youtube.com/@thefpaguy8376

Follow Financial Modeler's Corner

LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/

Newsletter - Subscribe on LinkedIn- https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984

In today’s episode:

01:10 Introduction

01:55 Rodrick’s horror story

03:55 Rodrick’s background

05:25 Getting stuck on a tropical island

06:08 Rodrick’s love of problem-solving, geeky coding, and number-crunching

11:50 Interview with Boris Johnson

13:17 Definition of token economics

21:39 How do crypto companies manage their treasury?

28:04 Simplifying Tokenomics modeling

30:01 Deciding on tool selection

35:51 Rodrick’s Favorite and Most Valuable Excel Shortcuts

37:25 Rapid fire

42:42 Wrap up