Financial Modeler's Corner

Note: This episode was recorded and scheduled for release before the recent announcement that Rosie AI is shutting down.In this episode of the ModSquad series on Financial Modeler’s Corner, host Paul Barnhurst is joined by modeling experts Ian Schnoor and Giles Male to evaluate Rosie AI, a new tool that integrates with both Excel and Google Sheets. Together, they test its capabilities in building financial models, solving complex FP&A tasks, and performing real-world use cases. They push Rosie through a series of tests, from basic formula creation to building full three-statement models, and discuss where it excels, where it needs improvement, and its potential future in the world of financial modeling.Expect to LearnHow Rosie AI performs in real-world financial modeling tasksThe strengths and weaknesses of Rosie in building models and formulasKey insights into how AI tools are evolving in financial modelingThe importance of knowing how to validate AI-generated modelsHow Rosie compares with other AI tools and traditional financial modeling techniquesHere are a few quotes from the episode:“AI can’t replace the need for modelers to understand the logic, but it can help speed up certain tasks.” - Giles Male“If you know what you’re doing, these tools can save you time. If you don’t, you need to double-check everything.” - Ian SchnoorFollow Ian Schnoor:LinkedIn -  https://www.linkedin.com/in/ianschnoor/Follow Giles Male:LinkedIn -  https://www.linkedin.com/in/giles-male-30643b15/Rosie AI: https://www.askrosie.ai/In today’s episode: [02:23] - Excel Turns 40[07:29] - Microsoft’s AI Agent vs. Modeling Tools[16:18] - Exploring Rosie’s Website and Features[25:35] - Real-World FP&A Test: Trial Balance Summary[35:53] - Deferred Revenue Schedule Test[50:54] - Detecting Inconsistent Formulas in Financial Models[01:00:53] - Testing Rosie AI on a Five-Year Forecast Model Build[01:08:31] - Final Thoughts: Where AI Helps and Where It Doesn’t

Disclaimer: This episode is best experienced in video format. Since we’re testing new tools like Tracelight, the visuals add valuable context and make everything much clearer. We highly recommend watching the video for the full experience.In this episode of the ModSquad series on Financial Modelers’ Corner, host Paul Barnhurst is joined by modeling experts Ian Schnoor and Giles Male to evaluate Tracelight, a new Excel-based modeling tool. Together, they explore how well it performs across real-world use cases in FP&A, Excel eSports, and corporate finance. From auditing balance sheets to solving Excel battle cases and building five-year forecast models, the ModSquad puts Tracelight through a comprehensive test to assess what it gets right, what it gets wrong, and where it still needs improvement.Expect to LearnHow Tracelight performs across different financial modeling scenariosThe impact of LLM selection and prompt design on tool outputWhere Tracelight excels, and where it falls short, in building models and running checksHow Excel eSports challenges expose strengths and weaknesses in formula logicWhen these tools can save time, and when they create more workHere are a few quotes from the episode:"If you don't know your stuff, you're going to learn the wrong things; or worse, think it's right when it’s not." - Giles Male"The best Excel modellers aren’t the fastest, they’re the most thoughtful."-  Ian Schnoor Follow Ian Schnoor:LinkedIn -  https://www.linkedin.com/in/ianschnoor/Follow Giles Male:LinkedIn -  https://www.linkedin.com/in/giles-male-30643b15/Tracelight: https://tracelight.ai/In today’s episode: [02:22] - Tracelight Overview & Positioning[09:46] - Giles vs. Excel eSports Battle Case[18:00] - Reviewing Tracelight’s Logic and Output[28:04] - Advanced Test: Championship-Level Modeling[33:59] - AI Tools and the Learning Curve[41:49] - Deferred Revenue Schedule Test[56:26] - Why Doesn’t the Balance Sheet Balance?[1:02:21] - Fixing Balance Sheet Errors Using Cloud Opus[1:316:00] - Episode Wrap-Up and Final Thoughts

In this special launch episode of The Mod Squad, host Paul Barnhurst is joined by co-hosts Giles Male and Ian Schnoor to explore the evolving intersection of artificial intelligence and financial modeling. Together, they introduce a new podcast series, The ModSquad, designed to test AI tools built for financial modelers, FP&A professionals, and analysts. The trio shares their excitement, cautious optimism, and the pressing questions they hope to answer through hands-on experimentation with cutting-edge tools that promise to transform the modeling landscape. Paul, Giles, and Ian bring decades of combined experience across FP&A, corporate finance, Excel training, and financial modeling accreditation. This introductory episode sets the tone for a candid, unscripted, and deeply analytical journey into the practical realities of AI in finance.Expect to LearnWhy AI won't replace financial modelers, but will transform the way they workHow AI tools are being developed to serve finance professionals specificallyThe importance of judgment, communication, and scoping in effective modelingWhat The Mod Squad plans to test: from three-statement models to Excel esportsHow to prepare your career for the AI revolution in modelingHere are a few quotes from the episode:“Just because it looks cool doesn’t mean it gives you a finished product.” - Giles Male“Modeling is just as much the journey as it is the destination.” - Ian SchnoorFollow Ian Schnoor:LinkedIn -  https://www.linkedin.com/in/ianschnoor/Follow Giles Male:LinkedIn -  https://www.linkedin.com/in/giles-male-30643b15/In today’s episode: [01:21] - Introduction of the Episode[04:57] - Why This Series? Helping Modelers Cut Through the AI Noise  [09:14] - Fear & Job Security: Will AI Replace Financial Modelers?  [14:14]- The Human Element in Modeling: Judgment, Communication, Scoping  [21:03] - Series Format: Tools We’ll Test & Why  [26:03] - Testing Assignments: Who’s Doing What?  [29:03] - FP&A Use Cases Paul Will Explore  [35:21] - What to Expect: Raw Prompts, Real Results  [36:52] - Closing: Why This Series Matters & How You Can Engage

In this episode of Financial Modeler’s Corner, host Paul Barnhurst speaks with financial modeling expert Scott Strachan about the role of financial models in business planning and decision-making. Scott shares lessons from over 30 years of experience in accounting, consulting, private equity, and corporate finance. The discussion covers the importance of modeling for startups, the problems with annual models, the risks of overrelying on EBITDA, and how the FMI certification has helped him stay sharp in a changing industry. Scott Strachan is a Chartered Accountant and Chartered Financial Modeler who has worked across the UK, the Arabian Gulf, and now serves clients in Qatar and London. He has built and reviewed complex financial models for deals worth hundreds of millions of dollars, and now contributes to the Financial Modeling Institute as a content developer and exam writer. Scott is known for applying practical thinking to modeling and helping bridge the gap between theory and real-world execution.Expect to LearnWhy annual models are often inappropriate for startups and small businessesThe difference between one-time-use models and those built for regular updatesHow poor modeling leads to funding gaps and business failureWhy EBITDA can be misleading in deal evaluationHow preparing for the CFM exam can improve your modeling skillsHere are a few quotes from the episode:“A model is just an appendix to a business plan. If you don’t understand your market or product, no model will save you.” - Scott Strachan“EBITDA is a fantasy land metric. It ignores reality and tells you what you want to hear, not what you need to know.” - Scott Strachan“Every business fails because of bad management, and that often starts with not modeling your cash needs properly.” - Scott StrachanFollow Scott:LinkedIn - https://www.linkedin.com/in/scott-strachan-ca-a795851a4/?utm_source=share&utm_campaign=share_via&utm_content=profile&utm_medium=ios_appFollow Paul: Website - https://www.thefpandaguy.com  LinkedIn - https://www.linkedin.com/in/thefpandaguyYouTube - https://www.youtube.com/@thefpandaguyFollow Financial Modeler's Corner:  LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  Newsletter - Subscribe on LinkedIn -https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984Sign up for the Advanced Financial Modeler Accreditation Today and receive 15% off by using the special show code ‘Podcast’. Visit https://bit.ly/497oAqW and use the code “Podcast” to save 15% when you register.  In today’s episode: [01:20] - Scott’s Background & Career in Modeling[06:26] - Why Annual Models Often Fall Short[09:11] - Why Startups Need Monthly Models[13:54] - Working Capital Mistakes in Startups[17:59] - Disposable vs. Ongoing Models[26:37] - Thoughts on EBITDA and Adjusted EBITDA[33:31] - Why Models Don’t Replace Business Fundamentals[40:25] - Excel Shortcuts and Modeling Habits[42:43] - Rapid Fire: Modeling Preferences[45:58] - Final Advice & How to Reach Scott

In this episode of Financial Modeler’s Corner, Host Paul Barnhurst sits down with David Stangeland, a finance professor at the University of Manitoba, to talk about teaching financial modeling, how students learn best, and the tools that have changed over the years, from PV tables to Excel. David shares what he's learned from more than 30 years in the classroom, why planning is so important in modeling, and how he uses real money investing through a student-managed fund to teach hands-on skills. He also talks about the value of the FMI curriculum, the role of judgment in modeling, and why he still learns something new every time he teaches. David has been teaching at the University of Manitoba’s Asper School of Business since 1991. He has a PhD from the University of Alberta and is both a CPA and a CMA. His research focuses on corporate governance and performance and has been published in top finance journals. He’s co-authored two corporate finance textbooks and currently advises the school’s $2.8 million student-managed investment fund.Expect to LearnThe most common mistakes students make when building modelsHow Excel helps students better understand what they're doingWhy structure and layout matter in a financial modelThe importance of combining modeling with real-world contextHow the FMI curriculum is used in teaching valuation and asset managementHere are a few quotes from the episode:“There’s no one right answer in valuation. It’s about making good assumptions and thinking through your logic to build a credible story.” - David Stangeland“Don’t think you know it all. Always be open to learning and improving. That mindset will take you further than any formula.” - David Stangeland“Spreadsheets aren’t going anywhere. Whether it’s Excel or something else, that flexible grid is still the best way to work with data.” - David StangelandFollow David:LinkedIn - https://www.linkedin.com/in/david-stangeland-phd-cpa-cma-b-comm-29773946/?originalSubdomain=caFollow Paul: Website - https://www.thefpandaguy.com  LinkedIn - https://www.linkedin.com/in/thefpandaguyYouTube - https://www.youtube.com/@thefpandaguyFollow Financial Modeler's Corner:  LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  Newsletter - Subscribe on LinkedIn -https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984Sign up for the Advanced Financial Modeler Accreditation Today and receive 15% off by using the special show code ‘Podcast’. Visit https://bit.ly/497oAqW and use the code “Podcast” to save 15% when you register.  In today’s episode: [02:03] - David’s Background[06:36] - Love for Teaching[10:05] - Starting with NPV Tables[13:54] - From Calculators to Excel[22:20] - Teaching with Three-Model Framework[27:54] - Current Projects Outside Teaching[33:19] - Modeling Standards Followed[35:20] - Favorite Lookup Function[37:18] - Advice for Aspiring Modelers

In this episode of Financial Modeler’s Corner, host Paul Barnhurst welcomes Vaughan Grandin, Managing Director and Head of Financial Modeling at Teneo. They discuss his experiences building financial models in distressed situations, the importance of empathy in working with clients, and provide examples of complex models, including those from the airline, aircraft leasing, and classic car dealership industries.Vaughan Grandin is the Managing Director and Head of Financial Modeling at Teneo in London. He is a Chartered Accountant with the South African Institute of Chartered Accountants and has more than 20 years of experience in corporate advisory, finance, and restructuring. He leads Teneo’s financial modelling team, which supports clients and other advisory teams by creating reliable models for distressed companies, transactions, and stakeholder analysis.Disclaimer: All examples and stories shared in this video are from Vaughan Grandin’s previous roles and do not reflect his current employer.Expect to LearnWhy empathy matters in financial modelingHow to approach modeling in distressed situationsThe role of entity priority models and circular referencesKey principles for building robust financial modelsLessons from real-world modeling cases across industriesHere are a few quotes from the episode:“Empathy is a word I think about a lot in modeling, especially in distressed situations.” - Vaughan Grandin“A good model should be able to take whatever inputs you give it and actually use them to solve a problem.” - Vaughan Grandin“In distressed situations, time pressure is real; sometimes, a company only has weeks of cash left.” - Vaughan GrandinFollow Vaughan:LinkedIn - https://www.linkedin.com/in/vgrandin/?originalSubdomain=ukCompany - https://www.teneo.com/person/vaughan-grandin/Follow Paul: Website - https://www.thefpandaguy.com  LinkedIn - https://www.linkedin.com/in/thefpandaguyYouTube - https://www.youtube.com/@thefpandaguyFollow Financial Modeler's Corner:  LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  Newsletter - Subscribe on LinkedIn-https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984Sign up for the Advanced Financial Modeler Accreditation Today and receive 15% off by using the special show code ‘Podcast’. Visit https://bit.ly/497oAqW and use the code “Podcast” to save 15% when you register.  In today’s episode: [03:22] - Model Horror Stories [06:52] - Empathy in Modeling [07:55] - Inside Teneo’s Team [12:50] - Classic Car Dealership Model [21:16] - Modeling in Distressed Situations [27:56] - Managing Complexity [32:07] - Aircraft Leasing During COVID [40:31] - Six Elements of Robust Modeling [46:51] - Rapid-Fire Excel Q&A [53:45] - Closing Reflections

Matt Lee, Co-Founder and CEO of Nummo, brings a wealth of experience from investment banking and as a CFO. He discusses the necessity of human input in financial modeling, even as automation increases. Matt shares insights into common modeling frustrations and how Nummo aims to streamline workflows without replacing analysts. The conversation touches on the evolving role of AI, the importance of maintaining accuracy, and the persistent relevance of Excel. He also highlights lessons learned from the industry, emphasizing the need for detailed attention in financial analysis.

In this episode of Financial Modeler's Corner, host Paul Barnhurst is joined by Morten Lykke Pedersen, a seasoned financial expert and Partner at Deloitte, where he leads the financial modeling division within the Strategy, Risk, and Transaction Advisory group. Morten discusses his extensive experience in mergers and acquisitions (M&A), strategic financial modeling, and how financial models can empower businesses to make informed, data-driven decisions. He also shares insights on the importance of collaboration during the modeling process, tips for ensuring client engagement, and the role of financial models in presenting a company’s equity story.Morten Lykke Pedersen, CFA, CFM, is a financial expert with over a decade of experience. He specializes in mergers and acquisitions (M&A), providing strategic insights that empower businesses to optimize their strategies through forecasting and risk assessment. Morten's career spans notable roles, including his tenure at PwC, where he managed valuation and modeling services. At Deloitte, Morten is dedicated to guiding businesses through complex transactions and strategic initiatives, helping them navigate industry dynamics and execute transformative transactions successfully. He holds a CFA charter and certifications in financial modeling, and his educational journey includes advanced degrees from Aarhus University, Saint Mary’s University, and the CFA Institute.Expect to LearnThe critical role of collaboration in transaction modelingHow to build financial models that communicate a company’s story and manage riskThe importance of scenario analysis in M&A transactionsWhy financial models should reflect business realities, not just numbersHow formal training programs, like the Chartered Financial Modeler (CFM), can elevate modeling skills and team capabilitiesHere are a few quotes from the episode:“Financial modeling is about understanding the business, not just crunching numbers.” - Morten Lykke Pedersen“A financial model should only do what it’s supposed to do, keep it simple and fit for purpose.” - Morten Lykke Pedersen“It’s not about the formulas; it’s about making sure the people who own the numbers understand what’s going on in the model.” - Morten Lykke PedersenFollow Morten:LinkedIn -  https://www.linkedin.com/in/mortenlykkepedersen/?originalSubdomain=dkCompany - https://www.linkedin.com/company/deloitte/Follow Paul: Website - https://www.thefpandaguy.com  LinkedIn - https://www.linkedin.com/in/thefpandaguyYouTube - https://www.youtube.com/@thefpandaguyFollow Financial Modeler's Corner:  LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  Newsletter - Subscribe on LinkedIn-https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984Sign up for the Advanced Financial Modeler Accreditation Today and receive 15% off by using the special show code ‘Podcast’. Visit https://bit.ly/497oAqW and use the code “Podcast” to save 15% when you register.  In today’s episode: [02:16] - Guest Background[03:43] - Worst Model Horror Story[07:58] - Client Engagement[11:52] - Conveying Company Value[13:35] - Supporting Assumptions with Data[21:11] - The CFM Journey with Morten's Team[31:19] - Favorite Excel shortcut.[32:14] - The Number One Career Lesson[33:39] - Rapid-Fire Questions[37:38] - Final Advice

In this episode of Financial Modeler's Corner, host Paul Barnhurst celebrates the 40th anniversary of Microsoft Excel, a tool that has revolutionized the financial modeling industry and many others. Paul explores Excel’s fascinating history, its evolution over four decades, and shares interesting facts, hidden Easter eggs, and fun surprises that Excel enthusiasts will appreciate. From the first graphical interface to modern-day features like dynamic arrays, this episode showcases how Excel has shaped the way we work and how it continues to be an essential tool for financial modelers.Expect to LearnThe fascinating origin story of Excel and its early days on the Mac.Fun facts about Excel’s features, including its secret limitations and quirky surprises.Excel's functionality has evolved over the years to include over 500 functions.Hidden Easter eggs and games that were embedded in older versions of Excel.Creative and unique Excel projects, including games and pixel art, showcase the limitless possibilities within Excel.Here are a few quotes from the episode:"The first version of Excel only had 150 functions, and now we’re up to 516! That’s quite a leap over 40 years." - Paul Barnhurst"Sometimes, the most creative projects come from using Excel in ways you never thought possible, like pixel art or creating a full video game." - Paul Barnhurst"The tool of choice for modelers is Excel, and it has a lot more to offer than meets the eye." - Paul BarnhurstFollow Paul: Website - https://www.thefpandaguy.com  LinkedIn - https://www.linkedin.com/in/thefpandaguyYouTube - https://www.youtube.com/@thefpandaguyFollow Financial Modeler's Corner:  LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  Newsletter - Subscribe on LinkedIn-https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984Sign up for the Advanced Financial Modeler Accreditation Today and receive 15% off by using the special show code ‘Podcast’. Visit https://bit.ly/497oAqW and use the code “Podcast” to save 15% when you register.  In today’s episode: [02:17] - 16 Fun Facts About Excel[08:11] - Excel's Evolution[14:58] - Excel Easter Eggs[16:55] - Excel Jokes to Lighten the Mood[19:13] - Epic Excel Creations: Stunning Art[23:11] - Wrapping Up and Final Thoughts

In this republished episode of the Financial Modeler’s Corner, host Paul Barnhurst revisits the intricate world of financial modeling with returning guest Christopher Reilly. The conversation centers around what is necessary to build robust financial models, highlighting the importance of three-statement models and cash flow forecasting. The episode is filled with practical insights, advanced techniques, and professional experiences that underscore the significance of simplicity, accuracy, and best practices in financial modeling.Christopher Reilly is a seasoned financial modeler with extensive experience in consulting, private equity, and financial modeling education. Starting his career during the financial crisis, Chris worked on high-profile bankruptcies such as Lehman Brothers and Rescap. His journey took him from a senior analyst role at Hilton Worldwide to a middle-market private equity firm, and eventually led to founding his own financial modeling education business. Today, he focuses on teaching and building financial models, with his work being featured by Wharton Online, Wall Street Prep, and LinkedIn Learning, among others.Expect to Learn:The importance of simplicity in financial models and how over-complicating can hinder their effectiveness.Practical steps and considerations for building robust three-statement financial models.Tips for auditing models to ensure accuracy and integrity.How to use advanced Excel functions and shortcuts to enhance modeling efficiency.Insights into the role of AI in financial modeling and how it may shape the future of the profession.Here are a few quotes from the episode:“All models are wrong, some are useful, and if it’s too complicated, it’s not useful.” - Chris Reilly“AI won’t replace modelers, but it will complement us by improving assumption accuracy and reducing bias.” - Chris Reilly“Use the BASE structure: Beginning, Addition, Subtraction, Ending, it’s the easiest way to audit support schedules.” - Chris ReillyFollow Christopher:Website - https://www.financialmodelingeducation.com/LinkedIn - https://www.linkedin.com/in/chris-reilly-mission-capital/  Follow Paul: Website - https://www.thefpandaguy.com   LinkedIn - https://www.linkedin.com/in/thefpandaguy  YouTube - https://www.youtube.com/@thefpandaguyFollow Financial Modeler's Corner:  LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  Newsletter - Subscribe on LinkedIn-https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984Sign up for the Advanced Financial Modeler Accreditation Today and receive 15% off by using the special show code ‘Podcast’. Visit https://bit.ly/497oAqW and use the code “Podcast” to save 15% when you register.  In today’s episode: [02:13] - Horror Story[03:46] - Why simple models are most effective[04:52] - Christopher’s career journey[08:07] - Passion for teaching financial modeling[11:31] - Why finance pros need 3-statement modeling[14:13] - Getting started with a 3-statement model[26:18] - Setting Up the Financial Plumbing[32:01] - Tips for error checks & model integrity[38:26] - Must-know Excel formulas & functions[46:16] - How AI may shape financial modeling[49:13] - Chris Reilly’s Financial Modeling Courses