ICAEW has created a framework for understanding and mapping finance practitioners' ability and proficiency when using spreadsheets. We outline the level of skill needed for each competency and mapped competencies we expect are needed for financial modellers.
A financial modeller is specifically tasked for making financial models - being spreadsheet based financial forecasts of businesses or projects - that are to be used by others, rather than using a model themselves as a means to some other end. Professional financial modellers are often part of consultancies, supplying models to clients, but could also be part of a modelling team in a large organisation, or they could be given the role as part of another job (such as management accountant) in a smaller organisation.
Relevant competencies
Financial modellers require a deep understanding of modelling methods in spreadsheets, to choose the most appropriate techniques to use to solve different problems and provide users with the best experience. As a result, the core competencies relevant to users in this role span across an understanding of design and best practice to apply consistent methodology to model design, an awareness of the most effective ways to bring data into models, a thorough understanding of different functions and formulas and an awareness how to build in error checks including data validation and workbook protections. VBA and automation often play a key role in the development of financial models, and increasingly AI also.
To develop their capabilities further, financial modellers may also benefit from knowledge of how to use Power Query, filters, array formulas and tables to enhance the structuring and consistency of their models, as well as solutions to support efficient working.
The competency framework
The framework is colour coded to illustrate the relevance of each competency.
- Core competencies form the essential Excel knowledge required for this job role.
- Beneficial competencies are additional skills individuals may choose to develop to strengthen their capability.
- Less relevant competencies remain useful Excel skills but are not as directly applicable to the role and therefore may be given lower priority.
Below is an interactive summary of the core competencies, as well as those beneficial to develop further capabilities, for this job role. Click through each section, in the left-hand column, to explore the framework.
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