FPAC vs Wharton - Which is the Best FP&A Certification for Career Growth with Paul Barnhurst?

Written By Paul Barnhurst

In this episode of FP&A Tomorrow, host Paul Barnhurst, aka "The FP&A Guy," provides a complete guide to FP&A certifications and programs. He offers valuable information into their structure, benefits, costs, and ideal candidates. The conversation covers leading certifications like the FPAC by AFP, Wharton’s FP&A Certificate Program, FMI’s Advanced Financial Modeler (AFM), and more. Paul provides discount codes for many of the programs in the show notes below. You can also find a complete written analysis of each certificate on his website: FP&A Certifications — The FP&A Guy

With a career marked by expertise in FP&A, Paul answers what certifications can help advance your career in FP&A. Paul compares these options, emphasizing their focus on technical skills, networking opportunities, and career applicability. He also shares personal experiences with several programs, highlighting their strengths and areas for improvement.

Expect to Learn:

  • A detailed comparison of leading FP&A certifications.

  • Key differences between training programs and certification exams.

  • Insights into lesser-known but impactful programs like the Certified Global FP&A Professional.

  • Recommendations for financial modeling programs, including those from FMI and CFI.

  • Tips for navigating costs, preparation, and maximizing the value of FP&A certifications.

Here are a few relevant quotes from the episode:

  • "Certifications are not mandatory, but they can help you stand out in a competitive field."

  • "Wharton’s FP&A Certificate Program is a great option for building both technical and interpersonal skills."

  • "Most certifications will require a significant time investment, so choose the one that aligns with your goals."


Certifications are valuable but they’re just one part of your professional journey. The real goal is to continuously enhance your skills, adapt to industry changes, and become an indispensable business partner. If you have questions or need guidance, feel free to reach out at https://www.thefpandaguy.com/fpa-certifications

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Explore the resources and discounts available:

Certified Corporate FP&A Professional (FPAC) from Association of Financial Professionals (AFP) - FPAC Program

  • The longest-established FP&A credential that validates your expertise. Ideal for early-career professionals or those transitioning into FP&A. 

  • Use Code Exam: TheFPAGuy-FPAC – Exam for $150 Discount

  • Use Code Exam Prep Platform: TheFPAGuy-FPACEPP – Exam Prep Platform for $100 Discount

    Certificate of FP&A from Wharton Online and Wall Street Prep - https://secure.enroll.wharton.wallstreetprep.com/referral/

  • A cohort-based training program designed to build technical and soft skills, with networking opportunities and industry-leading instructors.

  • Use Code: THEFPAGUY300 – $300 Program Discount

    Global Certified FP&A Professional (CGFPA) from FP&A Professionals Institute (FPI) - Certified Global FP&A Professional (CGFPA) | FP&A Professionals

  • A six-month, live coaching program ideal for finance and accounting professionals. Accessible globally, with a strong foundation in core FP&A skills.

  • Use Code: FPAGUY - $200 Program Discount

Advanced Financial Modeler (AFM)  by Financial Modeling Institute - Financial Modeler's Corner Podcast - FMI


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Website - https://www.thefpandaguy.com
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Earn Your CPE Credit
For CPE credit please go to earmarkcpe.com, listen to the episode, download the app, and answer a few questions and earn your CPE certification. To earn education credits for FPAC Certificate, take the quiz on earmark and contact Paul Barnhurst for further details.

In Today’s Episode
[01:57] - Overview of FP&A Certifications

[03:26] - Certified Corporate FP&A Professional (FPAC)
[12:42] - Wharton FP&A Certificate Program
[17:50] - Certified Global FP&A Professional (CGFPA)
[21:17] - Corporate Finance Institute (CFI) FP&A Programs
[28:03] - Wall Street Prep’s Financial Planning & Analysis Modeling (CFPAM)
[31:38] - Advanced Financial Modeler (AFM) by FMI
[37:08] - How to Choose Certification vs. Training
[40:02] - Final Thoughts and Resources


Full Show Transcript
[00:01:25] Host: Paul Barnhurst: Hello everyone! Welcome to FP&A tomorrow, where we delve into the world of financial planning and analysis, examining its current state and future prospects. I am your host, Paul Barnhurst, aka the FP&A Guy, and I will be guiding you through the evolving landscape of FP&A.


[00:01:45] Host: Paul Barnhurst: Each week we are joined by thought leaders, industry experts and practitioners who share their insights and experiences, helping us navigate today's complexities and tomorrow's uncertainties. This week we have a special episode for you. I will not be joined by a guest, but today I'm going to review the different FP&A certifications that are available for you. I'm regularly asked about getting into FP&A and asked about what programs are out there to help prepare me. What are the trainings? So we're going to focus on those that have certificate programs or certifications. I'll explain the difference of those later. And I'm going to give you an overview of each of them, my thoughts, my involvement and other things about each of these programs. And at the end I'll talk about a few courses. I also am going to be coming out in the near future on my website with several resources. Full disclosure: I have relationships with many of these programs. I also have affiliates with many of them. With each affiliate, you get a discount and there is an amount I receive, but I share these programs because I'm involved in them. I've taken many of them. I've done the FPAC from AFP, I've done the AFM from FMI. I've worked with the Wharton Online. I'm one of the instructors. I'm also doing some work for the Certified Global FP&A professional that we'll talk about. So these are the things I'm passionate about and believe about, but I want to be fully up front as I share this episode.


[00:03:12] Host: Paul Barnhurst: And you'll see in the show notes links to many of these programs with codes you can use to get discounts. So let's get started with the list of programs I'm going to cover today. And then we'll get into each program in a little more detail. So there is the Certified Corporate FP&A professional by the Association for Financial Professionals known as the FPAC. This is the longest one out there. This is the first one I'll cover. The other ones I'll cover are the Financial Planning and Analysis Certificate program by Wharton Online and Wall Street Prep, a relatively new program that's come out in the last year. There's also the Certified Global FP&A Professional. CG FP&A from FP&A Professionals Institute. It's also a relatively new one that's come out and we'll talk about that. Then we're going to talk about two programs from CFI, the Corporate Finance Institute. There's the financial modeling valuation and analysis certificate. There's the FP&A specialization that they offer. Next we have the CFPAM, which is the Financial Planning and Analysis modeling program by Wall Street Prep. And then last but not least, we'll talk about the accreditation or the certification that you can earn from the Financial Modeling Institute. A little bit about that program, including the advanced financial modeling. But before I talk about any of these programs, the reality is one of these programs may be right for you.


[00:04:51] Host: Paul Barnhurst: None of them may be right for you. They each have differences. References. They each have pros and cons, and you have to decide your path into FP&A your path to advancing your career. It's always great to learn. You should always be learning. The first thing I'll say about all of these programs is constantly be learning and working on improving your skills. So let's get started. The first one is the Certified Corporate FP&A professional by AFP. So let me talk a little bit about AFP. AFP has been around for years. They're a large organization. They started supporting Treasury. They have the certified Treasury professional, which is a certification you can take in Treasury. It's the biggest one out there. They have many members. They have an online community. They have an online website. You can pay a fee and become a member. They have one of the largest finance conferences in the world this year. It's in Boston in October. They also have a smaller form for AFP people about 700 versus the larger one. That's about 7000. In March, I'll be speaking at it this year. And so that's a little bit about AFP at a high level. They put out a lot of research. They're a not for profit organization. So they launched the FPAC in 2013 as a formal accreditation or certification. So they use the caveat group which validates that this is accreditation.


[00:06:21] Host: Paul Barnhurst: It meets certain standards, the test everything else to put letters at the end of your name. So think CFA, think CPA, CMA. This is an accreditation that shows you understand FP&A and you can perform at a certain standard by taking these tests. The program, like I said, was launched in 2013. It's updated every six years. Just went through an update. There's several committees involved in the development of the content. They have many different professionals over 50 that help with it. The key differentiator between this and everything, but kind of FMI is that it is a credential. It's not a training program with a certificate. It is a self-study program designed to get you an accredited certification. So in order to earn it, you must pass two exams, meet the education and experience requirements, and agree to abide by the Code of Ethics for AFP. You can enroll in the program before you meet educational requirements, which are approximately bachelor's degree in three years of work experience. If you have a master's, I believe it's two. You can also have certain certifications. If you've earned them, they can take the place of your bachelor's degree. You can see the exact details online on their website. And once you enroll in the program, you have five years to complete it. The program consists of two different parts. There's part one, which is financial acumen. There's three parts to that, and it consists of a variety of multiple choice tests.


[00:08:04] Host: Paul Barnhurst: You get three hours to take it. It's roughly 150 questions. Part two is financial analysis. And these has a lot of spreadsheet based questions. This section you get 4.5 hours to complete it. So that's a little bit about the test. The other thing to be aware of with this program, once you've completed it and you earn it, you have to earn recertification hours similar to your CPE hours for a CPA or CMA, you have to do 45 hours, and I believe it's every three years. Being a member of AFP can get you some hours going to other programs. There are a number of different ways you can earn those hours you need. They're all listed on the website. Let's talk cost for a minute. So the program will run you depending on when you do the early deadline or late, anywhere from $1000 to $1500. If you're an AFP member, you do early. It's a little over 1000, 1025. If you're a non member, it's 1520. But you also get the first year of AFP covered in that nonmember fee. So that's just a fee to take the two exams. Exam one can be waived with certain credentials that you already have, such as a CPA or CMA. They're all listed on the website. So that's the cost of the exams. Then there's the exam platform which I highly recommend, which is their training platform there.


[00:09:32] Host: Paul Barnhurst: Again, that's about $11 to $1200. So all in you're looking at call it 21 to 2700, depending on which kind of combination you go for that. That's the way I would think of this program and how you pass after you study. And they recommend a couple hundred hours of study. I think it's 120 to 200 for each test is you have to get above a 500. And what they do is they take your raw scores, they scale them using a statistical process and tell you if you passed or failed, you never get your score. So there's no penalty for getting wrong answers. Now let's talk just a little bit more detail on the test. As I mentioned, part one is financial acumen. How that works out is there's three domains for part one. There's the concepts of business and finance, systems and technology and business partnering with the concepts being the biggest section. Part two has analysis and projections, models and analytics, business communication. So let me talk a little bit more about how they set this up. Like I said, they use committees. There's over 50 people involved. They have a job profile they create, and the idea is when you're done with the training, you'll be able to meet basic standards of performing that job. Now let me just share my thoughts. I did the FPAC. Full disclosure, AFP gave me the opportunity to do that.


[00:11:06] Host: Paul Barnhurst: And so I did that. And this year I will be training some people for taking the FPAC. I'm in the process of being one of their certified trainers. Getting that material soon. My view is very good program. It prepares you overall, I really like it. I think the new exam platform is really good. I like that they added flash cards in a game center. They've kind of gamified it. They have a lot of video, 20 chapters. You get three full length practice exams, so it's very complete. There's flash cards that you can print. And so overall very good program. I would have liked to see a little bit more on AI and Excel myself. I do like all the frameworks they've done. I will say the program is primarily for people early in your career if you're more senior. I don't know that you necessarily need it. You could take it if you want. I took it more senior, but I really think it helps those early in your career. You know, if you're wanting to come from accounting and differentiate yourself, it's great. So that's a little bit about the program. I hope you find that helpful to give you some ideas about the FPAC. Like I said, great program. I like AFP. I spoke at many of their events. So definitely a good one to consider. And the biggest thing to remember is it's a certification.


[00:12:32] Host: Paul Barnhurst: It's not a training program. You're getting those letters at the end. I think that's the biggest differentiator between these and the other programs I'm going to talk about. So let's jump into the second one. This is a new entrant. Lots of people have heard of it. It's the FP&A certificate program. And one of the key differences is it's an online training program where the FPAC is a self-study training program. It's eight weeks long. The commitment is about 8 to 10 hours a week. So think 60 to 80 hours in total. It's going to be less time than you'll spend studying for the FPAC. I know I spent probably over 100 hours studying for the two tests. The program directors for this program are Christian Wattig and Christopher Ittner, who's a professor at Wharton. It's a cohort style program, so they offer it, I think once a quarter, roughly about four times a year, 4 or 5 times a year. The cost? This is going to be more expensive. This is one of what some people would call a drawback of this program is the cost. But let's talk about all the benefits you get with that. It's $4,800 or $960 a month for five months. Who is? The program is designed by Wharton and Wall Street Prep. It's designed for both finance and non finance professionals in their early to mid career, seeking to level up their skills so you can learn more about it.


[00:13:57] Host: Paul Barnhurst: If you search Wharton Online FP&A program, you'll find it. It's all you need to do. It's done by both like I said Wharton Online and Wall Street Prep. I am one of the instructors for this. Let me tell you a little bit of my relationship with the instructor. I've reviewed some of the test exam questions that Kristen Wiig has written previously. I did the Excel section, I worked with my partner Ron Monteiro, and we did a section on business partnering. He's on the video, but we worked on that. So here's what you get. Here's some of the resources and things you receive in this program. You're going to get a digital certificate for the program, but you must pass either the individual tests from each week or a final exam, I exam, I believe 75%, but don't quote me on that. Here's what you get. You get lifetime access to career resources. You get the network of program graduates during the program, you're going to get in-person and virtual networking events, weekly office hours and 1 to 1 coaching. So again, you can see a real difference. This one has network. It's a training program where you get that network. Those coaching help you find a job that's different than FPAC. Although FPAC has a ton of resources if you become a member of AFPp as well. So, you know, if you're looking for a great training program, learning FP&A you want the Wharton name, you want the benefits they have.


[00:15:25] Host: Paul Barnhurst: It's a very solid program. Here's the curriculum for the program. Module one introduction to FP&A. So this would be week one. Module two the planning cycle and annual budgeting. Module three Forecasting module for Financial Analysis and FP&A module five. Finance. Business. Partnering. Module six financial modeling for decision support. Module seven reporting, presenting and storytelling. Module eight preparing for the Future of FP&A. This program probably has over 20 speakers. Faculty. Some of the people you'll get to hear from include Nicholas Boucher, who does a lot on finance, and I myself, Glenn Hopper, another AI person, Ron Monteiro, Christian Wattig, Christopher Ittner, Wassia Kamon, who's the CFO, Anders Liu Lindberg of the Finance Business Partnering Institute, Chris Riley of financial modeling education. There's a lot of great instructors in this program. And so that's a little bit about the Wharton FP&A program. And now a brief message from this week's sponsor. Your process is unique, so why settle for one size fits all solutions? Paris Tech brings flexibility and customization to the tool you already trust Excel. It also brings power with an advanced data engine. With Paris Tech, you can design planning, analytics and reporting workflows that fit your business, your team, and your goals. Whether it's streamlining budgeting, building dynamic forecasts, or creating real time dashboards. Paris tech puts you in control. Our experts work with you to tailor a solution that aligns with your needs. Because FP&A should work your way, not the other way around. Ready to see how Paris tech can revolutionize your workflow? Visit paristech.com/FPAyourway. To book a call today and experience FP&A your way.


[00:17:50] Host: Paul Barnhurst: Next I want to talk about one that probably not many of you have heard. It's based out of India. It's called the Certified Global FP&A professional. CGFPA from FP&A Professionals Institute. It's designed for a finance and accounting professionals recommend you have a degree in that area. And so it's open to anyone. The program directors are Asif Masani and Dhawal Parvatikar. Now Asif has written several books on FP&A from accounting to FP&A. I think one is an introduction to FP&A and he's writing other books. He's well known for the podcast he's done, for the information he shares, for the courses he has. He's an expert in FP&A working in it for a decade, him and his partner. Between the two of them, they have 20 years of experience. The program is six months long, so it's the longest of all the programs. The time commitment is roughly 3 to 4 hours a week, so 75 to 100 hours. So similar to Wharton. Less time commitment than the FPAC. They do recommend you have work in accounting or finance, but it's not required. They do want you to have a degree or an accounting cert or equivalent. The cost. The cost is $1,500.


[00:19:06] Host: Paul Barnhurst: So 1495 are five payments of 299. I do have a code that can get you a $200 discount on that. I'll share that in the show notes for this episode. So here's how it works. They have live sessions every Saturday for two hours. You need to attend at least 50% of the sessions live. They also record them because there will be different time zones and challenges. They have a lot. It's a live coaching program with ten core model modules or models. They are personalized sessions with a career coach or provided. They do provide placement, support and alumni community so much like Wharton. There's a lot of resources to help you with that job search here, even more so. And here's the curriculum. Like I said, they have ten modules. So their modules are. Module one an introduction to FP&A. Module two financial analysis. Module three strategy four is management reporting. Five is financial modeling. Six is an introduction to data analytics. Seven is budgeting and forecasting. Eight is AI for finance and FP&A. Module nine is storytelling and presentations. And ten is business partnering. So it's a really well-rounded curriculum that covers kind of all the major items that I think you'd want to see in a course. I'm a big fan of the work also does requirements to take the exam. Like I said, you have to take the final exam. The requirement is to attend at least 50% of the live online classes.


[00:20:42] Host: Paul Barnhurst: To earn your exam certification, you have to get 50%, otherwise you won't be certified. The code you can use for the discount is FPAGUY. So FP&A guy not FP&A but FPAGUY. So FPAGUY that'll give you $200 discount. Also, if you go to my website and use my link, I'll receive an affiliate as well. It's a little bit about that program. It's a great program. I'm meeting with Asif here in the near future to talk about adding some content, some resources for students to help round out that program. All right. So the next one here is from the Corporate Finance Institute or CFI. Many people may have heard of CFI. CFI is trained roughly 2 million students over its life. The founder is Tim Vipond. He's the co-founder and they have many different certificates. I think they have six. Six different certificates, specializations. Tons of courses. A lot of it is focused on financial modeling. A lot of people in banking in that area. So what they say for their programs, depending on which one you take, your time commitment is going to be about 120 to 200 hours. Here's how their pricing works. Right now they have a 40% discount, but they have two programs. They have the full immersion, which is $847 a year. And that gives you access to all their courses. For $497 a year, you can get access to the self-study program.


[00:22:18] Host: Paul Barnhurst: You can also get continuing education credits. So if you're a CPA or CMA or CA or whatever accounting one you have, you should be able to get certification. There's no prereq required, but they do have nine prep courses that you can take to prepare yourself. So some basics on financial statements also maybe Excel. They also have a ton of articles online, a lot of stuff on video. They have created a lot of free resources in addition to their training. So for the FMBA, which is the financial modeling valuation analyst, there are 43 courses to choose from. You must take at least 16 to be able to sit for the exam to earn the FMBA. 13 courses which are really focused on modeling. There's little on soft skills. You got to get a passing grade of 70% to earn your certificate. You get three hours to take the exam and there are 50 questions. So let me talk a little bit more about what all you get with this program. So you get access to all their content. Like I said, they have six accredited certifications. They have 12 specializations when it comes to FP&A. The only two I would consider specifically around this is your financial modeling and valuation. Analyst is going to be really good on the modeling side certificate and their FP&A specialization. Now, one other thing I want to talk to you. The difference between the immersion program and just the self-study with the immersion program.


[00:23:58] Host: Paul Barnhurst: Well, with both programs you get live office hours, you get a blockchain accredited certification, you get a members only online community with paying each year. So it's kind of like a subscription model, but you don't have to resubscribe. You're going to have your certificate forever. They have an AI chatbot integrated into your course experience. If you do the full immersion, you can ask an Expert, get one on one guidance and you get personalized financial model feedback. So those are some of the things you get with that more expensive program. Now let's talk about the FP&A certification from CFI. There's 21 courses for that 936 lessons. 930 plus exercises. You're required to take 19 of the 21 courses. So there are two optional. You can anticipate a similar time commitment for MVA that I mentioned above, 120 to 200 hours. One thing I really like is it includes Power Query and Power BI fundamentals, which I think is something just about every person should learn. I haven't seen the power BI in some of the other courses. I know Power Query is included in Wharton because I did that content myself. Elf. This has great modeling skills. There's a workflow course where I think for in general, certification from CFI and the FMBA fall short of other programs is they lack the business partnering, the influencing, the storytelling. You'll want to supplement the training you get here with some soft skills training.


[00:25:49] Host: Paul Barnhurst: I would highly recommend my course. I have some great stuff on soft skills. Christian Wattig has one, Carl Seidman, Saeed Nadeem and there are others, but I really I'm a big fan of my course. It's the best price you get two instructors, ten hours. We cover a lot of these soft skills, so maybe a great way to supplement if you want to do the Fmea or the FP&A specialization. Some of the program instructors include Tim Vipond, Carl Seidman, Jeff Smith, and others for these programs. Now kind of give you my view on this. For the FP&A certification, I think they're good programs. There really a training. The way to think of it, it's a training program that you get a certificate at the end, and it's focused on modeling and your hard skills, your technical skills. They have a little bit on presentation, a little bit of storytelling, but that's the core area of this program. So let's go through the ones we've talked about right now. AFP, as I've mentioned before, is a credential. It's all about showing that you can do the work, you know, by taking the test. Often you have to build models, do some stuff in Excel, very basic, but build some things to get answers in Excel, especially for part two. You know Wharton, great program, great resources. Again, it's a certificate. It's a training program. You have a network. It's going to be your most expensive.


[00:27:13] Host: Paul Barnhurst: Then the one from Financial Professionals Institute, the global certified a great program. Our certified global professional definitely more known in India, I think a little more geared toward that area. Both the program directors are from there, but it can be for anyone globally. Anyone can take it. Good program. You know, I really like the course content. And then CFI of all the programs. I would say it's the least complete certification program, but it's very good. It's the most well known. People recognize it on a resume. Obviously they have good content or they wouldn't have trained 2 million people. So that's my take on from Corporate Finance Institute. So now let's move on and talk about the next one here. We're going to only touch on this one for a few minutes. There is the Financial Planning and Analysis modeling or the CFPAM program. It is eight courses 28 hours of instruction. Destruction. Plus, you know the work you do on your own. You can earn 31 CPE credits. You do receive a certification. It's offered by Wall Street Prep. I believe the cost is 4.99. It's self-study, so keep in mind this is the program they built before they did the program with Wharton. The full certificate program they offer now, which is in conjunction with Wharton Online. This is really heavy on modeling. So a little bit about it, you know, it has the recommended path has kind of an eight steps.


[00:28:56] Host: Paul Barnhurst: You do an introduction to building the operating model, the income statement, building the operating model, the balance sheet. That'd be week three building the operating model of the cash flow statement again. Week three. Week four pulling together the operating model. Week five project management. Long range planning and analysis, or LRP. Week six is presentation Best Practices and Building Dashboards. And then you have an appendix as corporate finance principles. So you can see it's very much structured on modeling. I think of it as a modeling course geared toward budgeting. Building a three statement model is not something necessarily every company needs to do, but very helpful to understand when they break out the percentage. The overview is about 15%. Storytelling projections and dashboards is about 15%. Corporate finance and strategy is 5%. And then most of the rest is really around the model, the building, the model, the income statements, those type of things. So about maybe 20%, 30% is either overview or a little bit on those soft skills. And then the rest is on the modeling. So that's that program. They still offer it even though they have the more advanced 100% self-study. So very similar to CFI. I mean, it's the least cost, right? The least commitment from a time perspective of any of the training programs. I also don't think it will carry the weight of the others. Honestly, I had never heard of it until recently.


[00:30:44] Host: Paul Barnhurst: So, you know, on this list, this is not one I would put as the highest recommendation. I think there are other programs you can take that demonstrate you're a good modeler without doing this, but if you are interested, check it out. I'm sure it's great training, but I don't think it's as complete a program as the others I've listed here. So that covers the FP&A certifications, and now I want to talk about one that I'm very passionate about. And I think it's a great route for FP&A professionals. Before I do I do that, let's just recap. We talked about the Certified Corporate FP&A professional by AFP. The FP&A certificate program by Wharton. The certified Global FP&A professional from FP&A Professionals Institute, CFI. And the Financial Planning and analysis modeling by Wall Street Prep. Now I want to talk about Advanced Financial Modeler and the programs offered by FMI. FMI is the financial modeling institute, as they like to say, the most respected accreditations in financial modeling, which I agree with.


[00:31:55] Host: Paul Barnhurst: Looking to level up your career and build skills that make you stand out to FP&A hiring managers. How about earning a certificate from a world renowned business school? Wharton Online and Wall Street Prep have partnered to create an eight week online financial planning and analysis certificate program. You'll learn the art of forecasting, analysis, business partnering and financial storytelling from Wharton Online's world class faculty, coupled with first hand exposure to technical and interpersonal skills with real world applications as practiced in top corporations. Space is limited, so level up your career today and use the discount code, THEFPAGUY300 to receive $300 off tuition. That is THEFPAGUY300 to receive $300 off tuition. Learn more by going to wallstreetprep.wharton.upenn.edu/. I'm a big fan of FMI, have been for years. I was introduced to it originally by Lance Rubin. Oh, about six years ago when I said, I want to get better at modeling. He's like, I recommend you take this. I'm a huge fan of the program. He actually also recommended Danielle Stein's book. And so I followed him ever since when I created the Financial Modeler's Corner podcast. They're the first ones I reached out to to be a sponsor because I believe in them. I was registered to take this test in 2020. Covid hit got delayed. I didn't complete it till February of 24, but I'm very glad I did it. It made me a better modeler. So they have both a board and an advisory council. They're not, as I'd say, as rigorous of a certification as FPAC. What I mean by that is they don't have an external third party validating. They meet all the requirements for the job every year, but they do accredit it. They're a very professional organization. I love what they're doing and they're really all focused on. Can you build an integrated three statement model for level one? Level two gets into more complexity and level three.


[00:34:06] Host: Paul Barnhurst: So this is for anyone in modeling. Could be banking, could be PE. It's not FP&A specific, but I think it's a great way to demonstrate to your to your employer. But look, I know how to design a model. I can build a model that is well designed as Ian has told me again and again. I had him on my podcast more than once. The number one issue with models and there's not even a close second is design. It always comes back to poor design. And that's why I'm such a big fan of FMI. Studying for the program really teaches you good design principles for modeling. So let's talk about what they have and a little bit more about them. They have a board and an advisory council. They're very active on LinkedIn. Financial Modeling Institute they have about 70,000 followers. When you register for the courses, you get one year of membership to their active community. They have four different kind of levels. There's really three levels, but one another program in there. So they have what's called the FMI foundations in financial modeling. You do take a one hour multiple choice exam, it's about 15 hours to complete it. You do not get a certification. You can have a digital badge and that's $200. So basically it's a great way to study the foundations of modeling.


[00:35:26] Host: Paul Barnhurst: It's taught by in those foundations are also used by CFA, which I'll talk about in a minute. Chartered Financial Analyst level one is the advanced financial modeler. That's where you have to take a proctored four hour exam, and you have to build an integrated three statement model. From an example. You have to do scenarios. You have to have an executive summary be able to print it, do all the best practices of building a financial model. Generally, they recommend at least 50 to 100 hours to prepare for it and you get the AFM accreditation. The cost is $725. Then you have level two, the Chartered Financial This demonstrates you're an exceptional financial modeler. I've heard this one's really tough. It is a real challenge. You have to do problem solving skills. Again, it's a proctored four hour exam. You have to have completed the AFM to do the CFM. There are no prerequisites for the AFM for level one. There is for level two it's 75 to 120 hours of study. Time is what they recommend. Cost is the same $725. Then they have what they call level three. Level three is more of a recognition. It's called the Master Financial Modeler. It's be recognized for your expert experience, skills, leadership, and contributions to the field of financial modeling. It's an application process. They recommend you complete your CFM, but it's not required as an application process. And you receive the MFM. There's no cost associated with that.


[00:37:05] Host: Paul Barnhurst: So those are the four different levels. Let me tell a little bit of why this was started. Ian has ran a training business for years. The Marquis group. And what was happening was people were putting it on their resume, and then they were the employers were reaching out to in and saying, hey, is this person any good at modeling? And he'd respond with, I don't know, maybe. Yes. No, I have no idea. They took a course. So he said, we need a certification similar to a CPA is certified or other people that work on deals. And so he created this as a way where he can say, yes, this person has met a minimum standard. They know how to build a fully integrated three statement model using best practices. Or if you've done level two, they know how to build exceptional. They know a lot more skills beyond just the basics. And so it's a way for employers to look at it and say, oh, this person's qualified, I did it and I was a better modeler for it. It helped me really learn a lot of principles about linking certain things and schedules and structure. Sure that I had never really been taught. I'd learned more and more over time, but hadn't hadn't been taught. So one other thing I want to mention I mentioned the CFA. So AFM, the program is very similar to what CFA offers for their financial modeling.


[00:38:26] Host: Paul Barnhurst: So they have a practice skills module where you can do financial modeling. That practice skills module is offered by FMI. So very similar to what you get there. You just don't get the exam. You don't get the community that comes with it. You get a one year community and they have great webinars, great resources. You can talk to people about modeling, financial modeling Institute, big fan of what they do there in the community. So just be aware if you've done the CFA level one and the practice skills module on modeling, you've done a lot of what's in the Fundamentals. You're seeing a lot of the stuff that you need to be able to do to pass the FMI. All right. So CFA people ask me why haven't I listed the CFA as a certification. Well, CFA, CPA, CMA, I don't think of those as FP&A certifications or modeling ones specifically. They're great. Many people take them before, but they were not the focus of this podcast. So what I want to say now is, is that you're trying to decide what to do. Remember, none of these are required. You can have a great career and be very successful without certifications. You can take great trainings. I offer several others, offer great trainings. You can have a great career without taking any of these. There are many great training programs, as I mentioned, Carl Seidman, myself and Ron Monteiro, Christian Wattig and others.


[00:40:01] Host: Paul Barnhurst: But I do think certifications is a great way making a career change. You want to stand out. You want to show your employer you're serious. There's a lot of great programs. If the goal is to get a credential, then FMI and FPAC. FPAC for FP&A, FMI for financial modeling. I think a great way to go is to get the financial modeling one, especially if you want to work for smaller companies in FP&A and then take an online course or do some book reading to supplement yourself. That's also probably a little less expensive than others, with FMI being $800. If it's really about network name, you know everything that comes with it. A great training program. Wharton's really good. You know, if you're if it's about an FP&A credential then obviously AFP. If you just want to do some self-study, get a certificate. Very good program a lot of modeling. Corporate finance institute. You also have, you know, the Wharton option. Then you also have the program there in India from OSF, which is a great one. Very reasonable cost, very complete program that you could take as well. Maybe you really like the idea of only two hours on Saturday, only have to attend 50% of the sessions live, and you think it's a great program. It makes sense. You got the certified global professional from the Professionals Institute. So there you go. That's a roundup.


[00:41:23] Host: Paul Barnhurst: I hope you found this helpful. I'll have a ton of resources on my website. I have relationships with pretty much all of these organizations and they're all quality. I don't think any of them are bad, but they have pros and cons and you have to decide what's right for you. Only you can do that. But I hope you found this helpful. As you go through your journey, feel free to reach out to me with questions. I'm always here to help you, and I'd love to have you in one of my future courses. Your company. If you need company, training or individual, please come join one of my courses. We have fabulous reviews. I will say they are really good. Of course I'm biased, but again, thank you. But more important than anything, go forth and be a great business partner. Serve your business. Help them make better, faster decisions. And help them move forward. To be prepared for the future of tomorrow. Thanks for joining me for this week's episode. Thanks for listening to FP&A tomorrow. If you enjoyed the show, please leave us a five star rating and a review on your podcast platform of choice. This allows us to continue to bring you great guests from around the globe. As a reminder, you can earn CPE credit by going to earmarkcpe.com, downloading the app, taking a short quiz, and getting your CPE certificate to earn continuing education credits for the FPAC certification. Take the quiz on earmark and contact me the show host for further details.

Paul Barnhurst
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