Financial Modeling

How to Pay Less Tax on Cryptocurrency Gains (Legally)

Do you invest (or trade) in cryptocurrencies? If so, does your accountant help you decide what’s the best investment strategy to MAXIMISE your AFTER-TAX PROFIT? When you lodged your tax return, did your accountant reveal that you could have paid significantly less tax if you did ‘X’? It’s too late to do anything now. You…

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Accuracy over Precision in Forecasting

Here’s a targeted interview question to test a job candidate’s financial modeling skills: “Can you build a model even when you don’t have all the relevant data?” The answer should be Yes. You don’t need all the relevant data, as long as you have identified what type of information you need, and the minimum information…

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Seperation of Concerns in a Financial Model

Here’s a targeted interview question to test a job candidate’s financial modeling skills: “Should you place inputs, calculations and outputs CLOSE TOGETHER in your model?” The answer should be NO. Your model should clearly distinguish between inputs, calculations and outputs. “Separation of concerns (SoC) is a design principle for separating a computer program into distinct…

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How to Hire a Financial Modeler for Your Business

If you’re running a business, you’ve probably made decisions on-the-fly and have done quick calculations in your head. But when you need to make decisions that require you to consider a multitude of factors, and the factors influence each other, it might be too complex for you to model the consequences of potential decisions in…

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Debugging DAX Formulas with Excel

Solving a problem in DAX can prove conceptually challenging due to the limited tools available to debug a formula. When you need to write a complex measure, you can write several measures, then combine them at the end into a single measure. However, what if you also want to inspect what rows are included in…

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Thoughts on Inheriting a Financial Model

I see financial modeling as a subset of software development, so software development principles also apply to financial modeling. Here are some quotes that reflects this perspective: The competent programmer is fully aware of the strictly limited size of his own skull; therefore he approaches the programming task in full humility, and among other things he avoids…

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