Why You Should Include Financial Modeling in Your Next Finance or Accounting Course

New graduates often find themselves confronted with a challenge rarely addressed in traditional university courses: how to bridge their academic knowledge with the practical skills required to be successful in the workplace. Financial modeling is a prime example of a technical skill necessary in many finance and accounting roles, but is not typically tackled in the classroom. When students graduate without financial modeling knowledge, they lack the skills that are necessary from their first day on the job.

When we talk about financial modeling, what do we really mean? In many corporate finance settings, we are referring to the ability to build a forecast of a company or an opportunity. We combine skills in finance, accounting, Excel and design to create a tool which can be used to make a financial decision.

Financial models guide strategy, evaluate investment opportunities, forecast financial outcomes, and manage risks. Yet, despite its significance as a discipline, financial modeling is frequently overlooked in undergraduate and even graduate-level curricula.

Consequently, new hires are often not “desk-ready,” a term many employers use to describe graduates who lack the essential, practical skills – like financial modeling –  required to get quickly onboarded into their new roles. When new hires start positions in finance and accounting without prior experience in financial modeling, data show that their confidence,  productivity, and trajectory of their careers may be negatively impacted.

Integrating financial modeling into university courses provides clear benefits:

1. Enhanced Employability: Employers are increasingly indicating that they are looking for candidates with financial modeling skills – right on the job posting! When new hires have financial modeling skills, they can easily transition from academic knowledge to practical execution.
2. Job Preparedness: New hires equipped with financial modeling skills can add value to their teams and clients right away.
3. Better Decision-Making Abilities: Financial modeling is an excellent leadership development tool. It forces students to think analytically and strategically about a problem, enabling stronger decision-making.
4. Reduced Training Costs for Employers: Companies can allocate fewer resources to training if new hires already possess essential modeling skills.

Many students are attracted to business programs because they are looking for great work opportunities. Finance and accounting professors can play an important role in bridging the gap between academic theory and the practical skills to help students access those opportunities. By incorporating financial modeling exercises, case studies, or entire modeling-focused modules into courses, professors are setting students up for success after they graduate.

Integrating financial modeling into finance and accounting curricula is not just a nice-to-have, it’s essential. Educators have an opportunity to prepare their students for the workplace, ensuring they step into their careers ready to excel.

FMI Foundations is a 15-hour, self-study program designed to teach students the key concepts and best practices in financial modeling. The FMI Foundations Program has been integrated into over 100 university courses around the world so far. To pilot the FMI Foundations in your course for free ($0), please reach out to Paul Coulombe – paul.coulombe@fminstitute.com.