Advanced Financial Modeler Program Overview

Best for those wanting a credential that demonstrates modeling proficiency to employers.

Advanced Financial Modeler (AFM) by Financial Modeling Institute (FMI)

Program Type:

Professional Accreditation

Eligibility Requirements:

While there are no formal prerequisites, the program is best suited for finance and accounting professionals with some experience or background in financial modeling. Candidates are expected to have proficiency in Excel and a basic understanding of financial concepts.

Duration:

Preparation typically requires 25-75 hours, depending on the candidate's prior experience and familiarity with financial modeling concepts.

Time Commitment:

50 - 100 Hours

Self-paced study, with exam preparation varying between 5-10 hours per week based on individual schedules.

Cost:

$725 for AFM

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Certificate Overview:

The Advanced Financial Modeler (AFM) program is the flagship accreditation offered by the Financial Modeling Institute. The AFM is level 1 of three levels offered by FMI. The test is designed to validate expertise in financial modeling, the AFM program is a rigorous program. Candidates are assessed through a 4-hour proctored exam where they must build a dynamic, best-in-class 3-statement financial model of a company from scratch.

Program Curriculum:

The AFM accreditation focuses on the following key areas of financial modeling:

Excel Proficiency: Advanced functions, scenario analysis, error checking, and printing techniques.
Accounting Fundamentals: Structuring and linking financial statements.
Model Design: Building clean, logical, and flexible models; incorporating scenario analysis and assumptions.
Operating and Financial Schedules: Creating revenue forecasts, cost projections, depreciation schedules, working capital schedules, and tax schedules.
Capital Structure Modeling: Building debt and equity schedules, modeling dividends and share repurchases, and calculating coverage and leverage ratios.
Three-Statement Modeling: Constructing accurate and interconnected income statements, balance sheets, and cash flow statements.

The learning materials include 60+ videos with 10 hours+ of content that covers the following topics to help prepare you for the test:

Chapter 1: Getting started with Financial Modeling
Chapter 2: The Front End
Chapter 3: Revenues
Chapter 4: Costs
Chapter 5: Depreciation
Chapter 6: Income Tax
Chapter 7: Working Capital
Chapter 8: Capital Structure
Chapter 9: Financial Statements
Chapter 10: Outputs and Troubleshooting

Key Features:

A rigorous 4-hour proctored exam to validate financial modeling skills
Access to the FMI Community for networking, technical support, and exclusive webinars
Successful candidates receive a digital badge and are listed in the FMI Accreditation Directory

Strengths:

Recognized as the premier accreditation in Financial Modeling
100% focused on demonstrating ability to build a best-in-class integrated 3-statement model
FMI is a partner of CFA and they use its modeling learning resources for the Level modeling practical program
Demonstrates to employers strong modeling capabilities
Proctored exam is online and can be completed from home

Opportunities/Things to Remember:

This is not an FP&A certification but a modeling certification so program has a narrow focus
Limited awareness compared to more traditional finance certifications like CFA or CPA
No continuing education credits to remain certified

The FP&A Guy’s Thoughts:

The Advanced Financial Modeler (AFM) program is one of my favorite programs even though it is not focused on FP&A. It is focused on a key skill every FP&A professional needs and that is financial modeling. I originally signed up for the program in 2020 and then COVID hit so I delayed it until 2024. I found I became a better modeler by completing the study resources in preparation for the AFM. I often recommend to people who want to get into FP&A and need modeling skills to take the AFM and then supplement it with some FP&A courses vs doing a full certification. Again, this resource is not for everyone but is a great accreditation at a very reasonable price.

If you have questions about this program or any of the other programs, feel free to email me at pbarnhurst@thefpandaguy.com