Wednesday, June 11, 2025

Financial Modeling in Excel For Dummies

By Danielle Stein Fairhurst

Financial Modeling in Excel For Dummies by Danielle Stein Fairhurst – book overview & hands‑on guide

📘 Overview of Financial Modeling in Excel for Dummies

Author credentials
- Danielle Stein Fairhurst is a Sydney‑based financial modeling consultant and Microsoft MVP (2021) (datarails.com, 2022.globalexcelsummit.com)
- Regular speaker, facilitator, and champion of women in finance (2022.globalexcelsummit.com)
Book purpose
- Designed for beginners and intermediate users, empowering them to create robust financial models without specialized software (youtube.com)
- Emphasizes real‑world applicability across all business sizes—from solos to multinationals
Hands‑on, learn‑by‑doing approach
- Includes practice models with templates and step‑by‑step breakout exercises (dummies.com, linkedin.com)
- Companion site offers downloadable Excel workbooks alongside the print material (datarails.com)

🧭 Part 1 – Getting Started with Financial Modeling

Introducing the basics
- Defines a financial model as a structured, quantitative tool for business decision-making (dummies.com)
- Debunks the myth that you need advanced math—emphasizes logic and structure over complexity
Planning & designing models
- Emphasizes clarity in structure: sheet layout, modular assumptions, and systematic flow (2022.globalexcelsummit.com, datarails.com)
- Encourages thinking of the output/report first to guide the layout
Best practices for model-building
- Sixth “crucial rules” include labeling clearly, separating inputs/outputs, auditing formulas, and ensuring consistency (2022.globalexcelsummit.com)
- Stresses adopting naming standards, documenting sources, color-coding, and version control
Working with existing models
- Strategies to review, edit, and validate models built by others (dummies.com)
- Warns of dangers from hidden rows and inconsistent formulas, and how to detect them

🧰 Part 2 – Diving Deeper into Excel

Essential Excel tools & techniques
- Covers Data Validation, Keyboard Shortcuts, Watch Window, Inspector, conditional formatting, FILTER, and structured tables (linkedin.com)
- Encourages using Power Query and Power Pivot for large datasets (dummies.com)
Core functions for finance
- Focus on SUMIF(S), COUNTIF(S), IFERROR, XLOOKUP, INDEX–MATCH, logical and financial functions (NPV, IRR, PMT) (dummies.com)
- Includes Goal Seek, Scenario Manager, and “What‑If” Data Tables (dummies.com)
Errors, checks, and testing
- Advocates for built‑in error checks, circular reference alerts, consistency auditing (dummies.com)
- “Garbage in, garbage out” reinforces the need for assumption testing and stress-testing (dummies.com)
Scenario & sensitivity analysis
- Guides on setting up “best/base/worst” scenarios using drop‑downs and Data Tables (2022.globalexcelsummit.com)
- Encourages looking side‑by‑side across multiple scenarios to reveal key drivers

📊 Part 3 – Presenting Results & Managing Models

Data visualization best practices
- Dynamic charts that update directly from model inputs (dummies.com)
- Clear, simple visuals—avoid clutter and keep charts linked to assumptions
Formatting & labeling for clarity
- Use of color, borders, labels, comments, and bolding to guide users (dummies.com)
- Documentation and version control for collaboration and auditability
Presentation & reporting skills
- Guides on telling the “story” of the numbers: distilling key insights for executives (dummies.com)
- Designing boardroom‑ready summary reports and slides

💼 Part 4 – Sample Case Study

End‑to‑end model build
- Guided exercise walks readers through building an integrated model featuring income statement, cash flow, and balance sheet projections (dummies.com)
- Highlights depreciation schedules, free cash flow, terminal value, and DCF valuation
Putting it all together
- Showcases how assumptions feed into outputs; scenario toggles impact charts and summaries
- Illustrates iterative tuning for accuracy and realism

🧩 Why It Works

Accessible, practical
- Reviewer notes: “Don’t be fooled by the Dummies branding—this is a meaty, excellent reference”
- Another says it's a great baseline for fixing broken workbooks and auditing models (linkedin.com)
Bridges theory & real-world needs
- Balances technical Excel functions with high‑level design and layout guidance
- Preps readers for collaborative work, audits, and consulting contexts (dummies.com)
A career booster
- Ideal for analysts, FP&A professionals, consultants and freelancers
- Builds career-ready skills: clear layouts, auditability, scenario planning, and presentation

📝 Takeaway Tips for You

Highlight author credibility—MVP status, consulting background, global teaching presence
Emphasize learn-by-doing style—step-by-step, downloadable models, real case study
Stress balance—strong Excel techniques + design/communication skills
Call out differentiators—scenario analysis, error checking, Power Tools integration
Quote reviews to build trust:

“A great reference for analysts of all skill levels ... control the model, or the model controls you.” (datarails.com, linkedin.com)

Conclusion

Financial Modeling in Excel for Dummies is a thorough yet approachable guide. It empowers readers to:

Plan smartly and layout models logically
Master key Excel functions and tools
Implement robust checks and scenario analysis
Present polished charts and professional summaries

Whether you're in FP&A, consulting, or anywhere financial insights matter, this book is a practical handbook and career‑builder. Danielle’s blend of skill‑building, design principles, and real‑model walkthroughs makes this a standout resource. Highly recommended for you, my precious audience!

CA Vikram Shankar Mathur
vsmathur@ahmedabadfca.com
https://www.ahmedabadfca.com
https://www.exceltrainerahmedabad.com
https://www.cavsm1962.co.in
https://www.cavsm.in
https://www.vikramshankarmathur.link
https://www.vbacoder1962.com
https://vsmathurcoin.blogspot.com
HTTPS://CODER.VIKRAMSHANKARMATHUR.INFO

Friday, June 6, 2025

Financial Management & Management Accounting

WHY IS AHMEDABADFCA.COM SYNONYMOUS WITH FM / MA?

First, let us understand the two books below, based on which there will be more posts over a period of time. These are:

(A) Financial Management: Text, Problems and Cases by M.Y. Khan and P.K. Jain is a widely used textbook in the Indian market that covers the core principles and practices of financial management [Buy Financial Management : Text Problems & Cases book : My ...]. It uses a comprehensive approach, combining theoretical concepts with practical problems and real-world case studies [Financial Management: Text, Problems and Cases, 8e - M. Y. Khan ...][Financial management : text, problems and cases [6 ed ...][Buy Financial Management : Text Problems & Cases book : My ...]. The book aims to provide students with a solid understanding of financial decision-making in various contexts [A Study on the Effectiveness of Debt Management and Financing ...].

The book covers topics such as:

Financial statement analysis [Financial Management: Text, Problems and Cases, 8e - M. Y. Khan ...]
Cost analysis and control [Financial Management: Text, Problems and Cases, 8e - M. Y. Khan ...]
Working capital management
Investment decisions
Capital structure
Dividend policy
Long-term financing [A Study on the Effectiveness of Debt Management and Financing ...]()
Valuation
Mergers and acquisitions

The book is structured to help readers understand both the theoretical underpinnings and the practical application of financial management techniques. It includes numerous problems and cases to illustrate the concepts and provide hands-on experience in financial problem-solving [Financial Management: Text, Problems and Cases, 8e - M. Y. Khan ...][Financial management : text, problems and cases [6 ed ...]()[Buy Financial Management : Text Problems & Cases book : My ...].

(B) Management Accounting: Text, Problems and Cases by M.Y. Khan and P.K. Jain is a comprehensive book that explains the use of accounting information for managerial decision-making and defining long-term organizational goals 3. It covers financial accounting, financial analysis, cost accumulation, profit planning, cost control, and decision-making 3.

The book is divided into seven parts 3. The first part introduces the nature of management accounting 3. The second part focuses on financial accounting, covering generally accepted accounting principles, accounting standards, accounting cycles, and financial statements 3. The third part deals with financial analysis, including cash flow statements and the analysis of financial statements 3.

The fourth part explains cost accumulation, examining cost concepts and costing in various management aspects like labor and material control 3. The fifth part discusses profit planning, covering budgeting, profit planning, and volume-cost-profit analysis 3. The sixth part covers cost control concepts such as standard and quality costs, variance analysis, and responsibility accounting 3. The final part focuses on decision-making, including capital budgeting and short-run decision analysis 3.

The book includes additional information on accounting standards, cash flow statements, and understanding corporate financial statements, along with a new section on service costing 3. It also features numerous case studies to enhance understanding 3. The book is available in multiple editions, including the 6th and 7th editions 1 2 5 6 7 11.

========== CA Vikram Shankar Mathur ==========

========== ahmedabadfca@gmail.com ==========

========== www.exceltrainerahmedabad.com ==========

========== www.vbacoder1962.com ==========

========== www.vbacoder1962.in ==========

========== www.excel-vba-ahmfca.com ==========

========== www.cavsm1962.co.in ==========

========== www.vikramshankarmathur.link =========

========== www.vikramshankarmathur.info ==========

========== vsmathurcoinshop.blogspot.com ==========

========== www.cavsm.in ==========

Using RubberDuck to Optimize VBA Code

Done! Here's what I came up with:

Using the Rubberduck add-in for VBA is a fantastic way to optimize and improve your VBA code. Rubberduck is an open-source tool that provides advanced features for VBA development, such as code inspections, refactoring, and unit testing. Here's how you can use it effectively:

1. Install Rubberduck

Download Rubberduck from its official website or GitHub repository.
Install it and ensure it integrates with your VBA editor (e.g., in Excel, Access, or other Office applications).

2. Run Code Inspections

Open your VBA editor and navigate to the Rubberduck menu.
Use the Code Inspections feature to analyze your code. It will identify:
- Unused variables or procedures.
- Poor naming conventions.
- Potential performance bottlenecks.
- Logical errors or redundant code.
Review the inspection results and address the flagged issues to improve code quality.

3. Refactor Your Code

Rubberduck offers tools to refactor your code for better readability and maintainability:
- Rename Variables/Procedures: Use meaningful names for clarity.
- Extract Methods: Break down large procedures into smaller, reusable methods.
- Encapsulate Fields: Convert public fields into private ones with property accessors.
These changes make your code more modular and easier to debug.

4. Leverage Unit Testing

Rubberduck includes a Unit Testing framework for VBA.
Write test cases to validate the functionality of your procedures and functions.
Regularly run these tests to ensure your code behaves as expected, even after modifications.

5. Use Code Metrics

Rubberduck provides metrics like cyclomatic complexity, which helps you identify overly complex code.
Simplify complex procedures to enhance performance and maintainability.

6. Explore Other Features

Smart Indentation: Automatically format your code for better readability.
Code Explorer: Navigate through your modules, classes, and procedures easily.
Annotations: Add meaningful comments and documentation to your code.

By using Rubberduck, you can systematically improve your VBA code, making it cleaner, faster, and more reliable. It's like having a coding assistant right inside your VBA editor!

https://ahmedabadfca.blogspot.com

Sunday, May 4, 2025

What is Artificial Intelligence?

What is Artificial Intelligence? When you go through these slides, you understand that there is no way that you can survive without using AI, in the world that we are inexorably being sucked into. At the very best, you should have someone working with you who can leverage AI for you!!

Yes, demand for AI enabler's is going through the roof, but we would prefer being on this side of that fence, thank you very much!! 😀😀😀😀😀😀

An important thought just occurred to me, after posting this, is that Software Developers come in all sizes and shapes.

On one hand you have open-sourced AI's like DeepSeek, which may or may not be following all the important standards or Training for a good one.

On the other hand, you have Microsoft CoPilot or Gemini 2.5 which has been created by Google DeepMind, perhaps with dozens of engineers working on the coding, so their results are naturally more reliable. While the former is free, the latter cannot offer too many freebies, naturally.

While I have been Programming the VBA since last 3 decades, using OOP methodology, my concurrently learning Python Programming along with AI, allows me to implement OOP methodologies far more easily than any other Programmer with my qualifications and experience.

Forgetting AI, for the moment, current taxation softwares all do error checking only at the time of submission, while I have always stressed on doing maximum error checking at the entry-level itself. Not that I am complaining, you see, it is not in my hands, in any case, until I come up with something, right?

Cheers!! 😀😀😀😀😀😀

Being a software developer myself and having more than 3 decades of experience in VBA Programming using OOP methodology, I think that these considerations are the first thing all AI Developers should take primary responsibility for. Since I am already sailing the ship by concurrently learning Python Programming, which also adheres to OOP methodology, I find it easy to create error-free Applications that take care at entry-level itself. Most of the applications built in recent years are not always so pre-emptive, but rather do all error checking at the post-submission stage. Hope that answers any question that the reader may have, at least from my perspective?

Monday, April 21, 2025

Microsoft Excel and Myself

Perhaps there is some guilt hidden in my words when I say that I have never really acted on the maxim "When you've got it, flaunt it"!

Excel and I go back a long, long way - and yes, VBA Macro's came in much later, coz I used to do Macro Programming in Lotus 1-2-3 long before I began coding in Visual Basic for Applications. Funny thing is, that I never did it commercially, so far. It was always either for self-consumption, or for my CA Firm, where I had been a partner at that time.

Today, practically everyone who needs to compute figures, uses Excel Spreadsheets, VBA or no VBA. Ironically, a VBA subroutine, if coded properly, can save you hours of manual computing, a point I have proven over and over, in the past, since almost 1995, when I entered private practice, as a CA.

Today, even though Microsoft says that VBA will continue to be a part of the Office Suite, be it Office 2024/25 or Microsoft 365, there are maybe just a handful of CA's who use VBA, that too just the Macro Recorder!! Have yet to come across somebody professional regularly creating or actively using UDF's, userforms or class modules, which is where the true power lies!!

Not that I am complaining, because in any case, I am not doing what I currently do or have been doing commercially, so if I don't earn another rupee, it does not matter!!

Creating formats in Excel is another hobby that I have always had, and I have enough in my Formats folder to keep me going forever. Templates are for those who do not have time to create a format, but I have always carved out time from my schedule to create my own templates, but none that I can share publicly, unfortunately!! Yes, occasionally I too use office templates, like Amortisation of Term Loans, but only to adapt them for my own use.

Friday, March 28, 2025

Self-Learning Artificial Intelligence

What is Generative Artificial Intelligence (GenAI):

AhmedabadFCA.COM

We all have by now realised the ever-growing importance of and demand for Artificial Intelligence, beginning from the second half of 2024. Whether student or researcher, Google had always been our go-to alternative, when wanting to learn more. Of late, you would have realized, whenever you search Google, the first response is from Gemini 2.0 !!!

No, it is not the magic of logic, but it is the magic of what we now know is called "Generative Artificial Intelligence" or GenAI, for short. For example, observe these images, saved from my social media account(s):

The above images are samples of the Generative AI, which is what Meta AI is also based on. Basically, now your actions are recorded, whatsoever it may be that you like, for example, in my case it is Lord Vishnu & Devi Laxmi (including Lord Ram & Devi Sita and Lord Krishna & Devi Radha) and Mahadev and His family, including Devi Parvati, Lord Ganesh and His Ansh-Avatar Lord Hanuman. We can bet our bottom dollar, that unless you share the same beliefs as usual, you would never see these images, but will have seen images of your belief!!

To make us know what gives us an idea of how it works, observe the first and fourth images from above. Both are of Lord Shiv, or Mahadev, but have you ever seen Mahadev with more than four arms? Or a psychedelic Mahadev? Quod Erat Demonstrandum, folks!!

We absolutely adore Mahadev, and naturally would adore whichever Form He appears before us, and that exactly proves our point. AI knows Mahadev, His family and His history, for it has been well trained by it's creator(s), for they are none other than software developers like us!!

Likewise for Lord Vishnu, who has had Nine known avatars so far, and His 10th Avatar, Kalki, is reckoned to arrive when Kalyug deteriorates into it's lowest level of degradation into sheer depravity. Stories of His avatars are all over the internet, especially His Seventh, Lord Ram with Devi Sita, brother(s) Bharat, Laxman and Shatrughan forming the epic Ramayan. His Eighth, Lord Krishna, elder brother Balram and His love story with Devi Radha, His wife(s) Rukmini and Satyabhama; the Pandavas, Yudhishthir, Bheem, Arjun, Nakul and Sahadev, who battled the Kaurav's led by Duryodhan, Dushyant and 98 other brothers in the mega epic Mahabharat. Though the battle lasted 18 days, a lot happened before, during and after the battle. For instance, the Chakravyuh and Abhimanyu, the battle of Arjun and Karan, the beheading of Shishupal, the end of Bhishma Pitamah, etc ,etc.

The teachings of Lord Krishna to his Parth, Arjun also form a beautiful part of this epic. "Karmanye Va Dhikaraste, Maa Phaleshu Kadachana" is the one verse that resounds in my mind, which basically means that a human being should only go about fulfilling his wordly duties, and should leave the awarding of the fruits of his labour to God!!

No surprises, then, that I am blessed with their images, for that is what I have been wanting, liking and viewing, day in and day out!!

We have started self-learning both Artificial Intelligence and Python Programming from January 1st, 2025.

Our Digital showroom (https://www.vikramshankarmathur.link) is currently in an Advanced stage of refurbishment. Once that is complete, we have another surpise in stow for you!!

Good Evening!!

CA Vikram Shankar Mathur

Last Updated: March 28th, 2025 @ 16:32 Hours IST

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Theory-VS-Practical

THEORY VS PRACTICAL:

One never knows what challenge life will throw at you next, and most importantly, when it decides to test your alertness. You have to be alert, like Virat Kohli remains alert at the crease, ready to swat the ball, which is intent on removing your stump (or just the bails balanced delicately atop).

One should create a habit of at least listening to what your seniors (s) tell you, even if the words are harsher than you would like. Because what experience teaches you, no amount of reading theories will!! That is why they say, that experience is the best teacher.

Reading books will only enrich your knowledge, but unless you learn how to convert a theory, no matter how sound on paper, into a practical application, it remains just that, a theory.

To illustrate, let me explain with an example. Long ago, I used to teach a subject called SADP, short for "Systems Analysis & Data Processing" at the CA (Final) level. I was explaining the student the conceptual theory of a silicon conductor (chip, in layman terms) and I asked him if he has observed what happens when a tubelight is switched off after use? Next time, even you can observe, that the tubelight flickers until the remaining electric charge disperses completely. When the boy followed my instruction and temporarily turned off the tubelight, I explained that the silicon chip is popular in the computing industry for the reason that if you turn off the computer unexpectedly, the silicon chip retains enough charge to write back into the hard disk your last unsaved work. How else does Microsoft Excel present you unsaved versions of your active worksheet even though the electricity failure occurred unexpectedly?

Another last piece of advice to my younger and more enthusiastic fellow members: Never cross swords with the programmer who writes your VBA or Python code, because only he controls what will happen when, in your application!! It has happened with me, though being an ethical hacker (post my FAFP certification in 2016), I was able to catch the error and forced my programmer to suitably amend the code!! :-) :-).

But you may not be so lucky: Better safe than sorry, as they say!! The graphic below has been amended by me to remove references of unwanted variety. Plus, I can now promote, as a #freelancer, my website, www.cavsm1962.co.in - safely!!

Sunday, January 19, 2025

Vikramshankarmathur.Info Website Project

https://workspace.google.com/intl/en_in/products/sites/

For those of you who know me, I am also a Google Developer (cavs.mathur@gmail.com) and recognized Google Guide (Level 4).

I am working on Google Site which will be hosted on my domain https://www.vikramshankarmathur.info

Recently, I have created a Google Site (still under development) that I will be connecting to my aforesaid domain. Wish me luck, I hope to complete this project by March 31st 2025.

Thank God, Mumbai is much safer than Delhi

It's a relief to realize that Mumbai, which used to be my home from 1983 till 1988, when my Dad was posted there, is a lot safer than Delhi, where I have lived from 1979 till 1983!! Still, the recent incident in Saif Ali Khan's home is most shocking and has left me in shock, as well!! But something, like a gut feeling, tells me that the attack on the younger Nawab of Pataudi was just a blip on the radar, I hope to God, it is not a precursor to something much more horrible, that may happen. May Lord Shankar Mahadev have mercy. Har Har Mahadev!!

Wednesday, December 25, 2024

20241006-Digital-Showroom-Launched

With the blessings of Lord Ganesha (Om Vakratunday Namah) and the hand of Lord Shankar Mahadev hovering above my head, I am undertaking a momentous journey, with the launch of my Digital Showroom - promoting the sale of macro-enabled worksheets/workbooks - that would ease YOUR work, for my work begins where your troubles get you stuck!!

Good Evening, my friends.

(PS: Only time will tell where we will meet next!)

CA Vikram S. Mathur - CaVsm

Search This Blog