Why you should know the latest trends in data management

Today, data management has become a critical aspect for businesses and professionals alike. It is essential to stay updated with the latest trends in data management to remain competitive and relevant in the industry. This blog will explore and highlight the significance of the top six data management trends for which professionals should watch out.

Overview of data management

Data management involves the collection, storage, organisation and analysis of data to derive valuable insights and support decision-making processes. It plays a crucial role in various industries such as banking and finance, healthcare, retail and more. Effective data management allows businesses to optimise operations as well as enhance customer experiences and drive innovation.

Significance of data management

Large volumes of data are generated each day and managing it efficiently has become paramount. Organisations that can successfully implement robust data management practices gain a competitive edge by leveraging their data effectively. Proficiency in data management is also highly sought after by employers across industries. Here are 6 key trends that have emerged in data management in 2023

Cloud-based data management

One significant trend that will continue to dominate in 2023 is the adoption of cloud-based data management solutions. Cloud platforms offer scalability, flexibility and cost-effectiveness for storing and processing large volumes of data. The convenience of accessing data from anywhere at any time makes cloud-based solutions an attractive choice for organisations.

Data governance

Data governance refers to establishing policies and procedures to ensure the quality, integrity, security and compliance of organisational data. In 2023, there will be an increased focus on implementing comprehensive data governance frameworks to maintain trustworthiness and reliability of information assets. Professionals skilled in data governance will be highly valued as they can help organisations mitigate risks related to privacy breaches or regulatory non-compliance.

Artificial Intelligence (AI) and Machine Learning (ML)

AI and ML technologies are transforming the data management landscape. In 2023, there will be a growing need for professionals who can leverage AI and ML algorithms to analyse vast amounts of data and generate actionable insights. These technologies enable automation, predictive analytics and anomaly detection, empowering businesses to make data-driven decisions faster and more accurately.

Data privacy and security

The increased concern around data privacy and security will continue to shape data management practices in 2023. With the implementation of regulations like the General Data Protection Regulation (GDPR), organisations must prioritise securing sensitive information. Professionals well-versed in data privacy laws and cybersecurity measures will be at the forefront of safeguarding valuable data assets.

Data visualisation

In an era where information overload is a reality, the ability to communicate insights effectively has become pivotal. Data visualisation tools enable professionals to present complex data sets in visually appealing formats, making it easier for stakeholders to understand and interpret the information. In 2023, proficiency in data visualisation techniques will be highly sought after by organisations aiming to deliver impactful presentations that drive actionable outcomes.

Data ethics

As society becomes more aware of the ethical implications of using personal data, organisations are expected to uphold higher standards of ethical practices surrounding data collection, usage and sharing. Professionals with knowledge of ethical frameworks related to data management will be indispensable as they guide organisations towards responsible use of customer information.

Effective data management is the need of the hour

As we step into 2023, knowledge of and insight into the latest trends in data management is crucial for professionals seeking career growth in this field. Cloud-based solutions, data governance frameworks, AI/ML technologies, enhanced privacy measures, effective data visualisation techniques and ethical considerations are key areas that demand attention. To stay ahead of the curve, consider upskilling through courses such as the financial planning and analysis course or obtaining a certificate in financial analysis from reputable institutions like Imarticus Learning.

If you want to enhance your knowledge in analytics or explore other data management courses, Imarticus Learning offers comprehensive programs that cover these trends and more. Read more about the course here.

Growing your wealth over time through investments is undoubtedly achievable through investing, yet it might appear to be an intricate task that can eventually get overwhelming for beginners. Nevertheless, with the appropriate approach and understanding, investing can evolve into a fulfilling experience that leads to financial growth.

In this beginner investing guide, we will try to crack the fundamentals of investment and provide insights into effective investment strategies through some of the most significant tips. Our goal is to equip you with impactful tips to help you make well-informed decisions, ultimately maximising your success and profitability in the realm of investments.

Set Your Financial Goals

The initial and most crucial step of a beginner investing guide is to establish a specific financial goal for yourself. This goal serves as the cornerstone for your financial achievements and can range from saving for a home down payment to launching a business.

Once you’ve established a clear goal, you can initiate the necessary steps to turn your ambitions into concrete outcomes. You can choose to handle your investments on your own or enlist the expertise of a financial advisor for a more informed and strategic approach.

Diversify Your Portfolio

Spreading out your investments across different assets and industries is a smart move. This approach doesn’t just help you handle risks better but also allows you to optimise your returns. In essence, this approach ensures that your reliance is not overly concentrated on the performance of a single stock. 

Consequently, if an adverse event affects one of your investments, its impact on your overall portfolio won’t be substantial, thanks to the diversification of your funds across various assets.

Assess Your Risk Tolerance 

Risk tolerance refers to your capacity and willingness to undergo and endure changes in the volatile investment market. This factor primarily influences the assets you consider for inclusion in your portfolio. By gaining an in-depth comprehension of your ability to handle risk, you can select investments that match your comfort zone.

Investing Regularly and Consistently

Consistent and regular investment is a fundamental strategy for building wealth over time. This approach is commonly known as dollar-cost averaging. It denotes saving up a fixed amount of money regularly, irrespective of the market conditions.

By consistently investing, you can significantly reduce the impact of short-term market fluctuations. This disciplined approach is also crucial for long-term success.

Invest For the Long Term

Whether you are saving for retirement, a child’s education, or other long-term goals, adopting a patient and strategic approach can yield significant benefits. 

Firstly, it allows you to survive through any short-term market fluctuations and volatility. Secondly, it allows you to properly harness the benefits of compounding. Compounding is the process whereby your investment generates additional returns over time. Therefore, the earlier you start investing, the more time your money has to compound, potentially magnifying your wealth.

Lastly, emotional decisions can be detrimental to investment success. However, the ‘investing for the long-term’ approach minimises emotional decision-making and enables you to make more rational decisions. 

Always Have an Emergency Fund

Before embarking on the investing journey, ensure that you have an emergency fund prepared. This fund should cover a few months (typically 1-3 months) worth of living expenses and provide a financial backup during unexpected events. 

Even if you are not facing a crisis, an emergency fund can bridge short-term gaps in your income. This is especially useful if you are between jobs, starting a business, or experiencing fluctuating income. 

Conclusion

To sum it up, investing for beginners does not have to be overwhelming. By understanding your financial goals and risk tolerance, you can embark on a journey towards financial prosperity. Always remember that patience and a long-term perspective are the keys to successful, regular, and consistent investing.

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Microsoft Excel is a powerful tool that has become synonymous with data management, analysis and visualisation.

In fact, did you know that as many as 1.1 billion people globally use Microsoft’s Productivity Services, which includes Microsoft Excel as well? This means that at least 1 in 8 people use Microsoft Excel!

However, it is not just about the number. The plethora of functionalities offered by this tool has made it suitable for a variety of tasks, such as using it as a flat-file database, effective contact management, maintaining customer relationships, and more. 

One thing that almost every Excel user has in common is not knowing enough. Whether you are a beginner or an experienced user, there is always more to explore and discover within Excel’s vast capabilities. 

On that note, mentioned below is a detailed article highlighting some of the most effective tips and tricks to help you conquer Microsoft Excel and elevate your spreadsheet game.

Format Painter Tool

Suppose you want to change the entire look of a cell, like its colour and font, and apply the same to other cells as well. To achieve the same, you can make use of the format painter tool, which you can find on the ‘Home Tab’. All you need to do is just click on the cell you like, then select the ‘Format Painter’ tool, and then click on a different cell to paint in the format.

Flash Fill Magic

You can use the Flash Fill Magic to automatically fill in values based on the patterns that you have established. This will save you a lot of time, especially when it comes to data formatting and cleaning. 

Open Excel Files in Bulk

When you have multiple files to handle, opening each file one by one can be extremely tedious and time-consuming. Instead, you can just select the files you wish to open and then click on the ‘Enter’ key on your keyboard. In this way, all the files will open simultaneously.

Moving between Different Excel Files

Moving between multiple files, especially when you are working with different spreadsheets, can be quite annoying at times. In such cases, you can use ‘Ctrl + Tab’ to shift between different files freely. 

PivotTable Prowess

You can use the PivotTables for dynamic data analysis. With just a few clicks, you can be able to analyse, summarise and visualise data in a simple and hassle-free manner. 

Move and Copy Data in Cells

Let’s say you want to move one column of data in a spreadsheet. All you need to do is select it>move the pointer to the border>drag to move the column freely. In case you need to copy the data as well, use the ‘Ctrl’ button before dragging it to move. 

Tables for Structured Data

To convert your data range into a table, you can utilise ‘Ctrl+T’. This is especially helpful for enhanced sorting, filtering and dynamic referencing. 

Input Values That Starts With ‘0’

If your input value starts with ‘0’, then Excel will automatically delete the 0 by default. To prevent the same from happening, you can just add a single quote mark before the first 0. 

Print Optimisation

To make the entire printing process simple and manageable, you can try out this simple hack. 

File>Print (where you can see a preview of the entire document)>Settings>Preferences (select the number of pages or whether you wish to print in the front or back of the paper).

Autoformat

To simplify the entire formatting process, you can try out the ‘Autoformat’ option. To access the same, try Quick Access Toolbar>More Commands>Choose Commands From>All Commands>Autoformat>Add> OK. ‘Autoformat’ will now be added to the ‘Quick Access Toolbar’.

Total A Column or A Row

One of the best ways to total a column or a row is by using the Total Row or Total Column command, which you can find under the Design tab.

Adding Bullet Points

Just click on the desired cell and press ‘ALT+7’ to add bullet points to a cell.

‘IF’ Excel Formula

By using the ‘IF’ function, you can make meaningful comparisons between a resulting value and your expected value.

Hyperlinking a Cell to a Website

For hyperlinking a cell to a particular website, all you need to do is click on the desired cell, then navigate to the Insert tab, where you will find the option to ‘Link’. This will allow you to add the URL in the address bar.

Named Ranges

By utilising the Named Ranges feature offered by MS Excel, you can assign meaningful names to cell ranges. This makes the formulas better readable and understandable. 

Hide a Whole Sheet

If you wish to hide a particular sheet, making its data available only for reference, all you need to do is right-click on the bottom sheet tab and then click on ‘Hide’. If you wish to view it again, simply go to the ‘View Tab’, right at the top, wherein you will find the ‘Unhide’ option. 

Screenshot Insertion

One of the many features offered by MS Excel is that it allows users to take a screenshot of an open program and insert the same into a worksheet. To access this feature, all you have to do is go to the Insert tab, then Screenshot, and you can view a thumbnail of all the open programs. Select the one that you need and then resize it accordingly. 

Text to Columns

By using the Text-to-Column function, you can separate text in a cell or column by splitting it up with different criteria. All you have to do is go to the ‘Data menu tab’ and then click on the ‘Data Tools section’. 

Sparklines

To visualise trends within a cell range, you can create in-cell charts, which are referred to as Sparklines.

Add Checkboxes

To enter data uniformly, you can make use of form controls like checkboxes. Simply go to the ‘Developer’ tab on your ribbon and then click on ‘Insert’ to make a selection.

Conclusion

Wrapping it all up, mastering Microsoft Excel is a journey that involves continuous learning and exploration. Hopefully, these above-mentioned tips and tricks have been able to serve as a foundation to enhance your efficiency, accuracy and creativity within Excel. Whether you are working on financial data or simply organising information, these tips and tricks will undoubtedly make you an expert in Excel.

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Whether you’re engaged in buying or selling, financial reporting, or strategic planning, business valuation plays a pivotal role in evaluating a company’s worth. Numerous company valuation strategies are employed to ascertain the fair market value of a business, each extending distinct insights into its financial health.

Curious about these business valuation methods? Let’s explore.

This article aims to offer you a thorough guide to comprehending various business valuation methods for all entities involved in financial planning.

Methods of Business Valuation

Provided below are some of the most common ways a company can be valued. 

• Market Capitalization

Considered to be one of the simplest methods for business valuation, market capitalization acts as an impactful indicator of the overall value of a publicly traded company’s outstanding shares of stock. The calculation for this is derived from the formula provided below.

Market Capitalization = Current Market Price Per Share * Total Outstanding Shares

Market capitalization is a crucial metric for investors, analysts, and financial professionals as it provides a quick snapshot of a company’s size and relative importance in the financial markets. 

• Times Revenue Method

The Times Revenue method estimates the value of a company based on its annual revenue. This methodology proves to be especially handy for businesses that might lack positive earnings or a substantial variety of assets but boast a robust revenue flow. It provides a straightforward and speedy way to get a rough estimate, particularly beneficial for start-ups and rapidly growing companies.

• Discounted Cash Flow

Discounted Cash Flow, also known as DCF analysis, mainly considers the concept of the time value of money. This means acknowledging that a dollar received in the future holds less value than a dollar received today. DCF analysis extends a detailed approach to evaluate the inherent value of a business by considering its estimated future cash flows. To perform this calculation, we apply the formula mentioned below.

Discounted Cash Flow = Terminal Cash Flow / (1+Cost of Capital) # of Years In The Future 

• Liquidation Value

Liquidation value is another popular business valuation method that estimates the value of a company’s assets. It usually works under the assumption that the business is ceasing operations and selling its assets in an orderly fashion. When using the liquidation value method, quite a few factors come into play. Such include asset appraisal, liabilities, business-specific factors, and market conditions, among others.

• Book Value

Book value involves assessing the net value of a company’s assets by subtracting its liabilities. This approach provides an overview of the company’s financial position based on its historical cost rather than its market value. It is calculated using the following formula: 

Book Value = Total Assets – Total Liabilities

The book value methodology is often considered to be a starting point for business valuation. However, please note that it has its limitations, especially in industries wherein the value of assets may vary compared to their recorded book values. 

Apart from these, there are several other company valuation strategies used. These include earrings multiplier, enterprise value, and EBITDA, among others. 

Conclusion

Choosing the most appropriate business valuation methods depends on diverse factors, including the industry, the company’s financial structure, and the purpose of valuation. Often, a combination of these methods provides a more comprehensive and accurate assessment of businesses’ value. Therefore, as a business owner, investor, or financial professional, you must carefully consider these methods and look at their advantages and limitations to make informed decisions in the dynamic and competitive business environment. 

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Starting a profession after graduating from high school is a milestone period, and the decisions made frequently build the groundwork for future success. The expanding field of finance approaches, with promise in today’s competitive worldwide environment, offers a varied array of possibilities and hurdles.

Finance is a vast universe that includes every detail, from investing tactics that shape worldwide markets to rigorous financial planning that ensures individual destinies.

The estimated revenue growth is expected to surpass US$12.17 billion by 2023 with a 2.83% a year growth rate in the financial market, resulting in a total of US$13.99 billion by 2028. For 12th graduates who want to pursue a career in finance, this trajectory represents a developing sector and long-term growth prospects.

The following article will guide you while you stand at a crossroads, contemplating the many possibilities available to you and the information required for handling the world of finance after schooling. 

Advantages of Pursuing a Career in Finance

Pursuing a career in finance reveals an extensive range of benefits that go far beyond financial advantages. Here are a few strong reasons why getting into finance might prove quite advantageous:

Good Money and Growth – It goes beyond saying that once you’ve established a career in finance, you will have the opportunity to earn a lot of income. In the sector of finance, even some entry-level occupations are profitable in terms of revenue. Furthermore, with the correct set of talents and skills, there is the potential to fast advance up the ladder of opportunities.

Learning and Adaptability on a Continuous Basis – The financial environment is always changing, necessitating ongoing development and adaptation to new technology, norms and market trends. This constant change provides chances for personal and professional growth, resulting in an innovative and exciting career path.

Balanced Lifestyle – Careers in the finance sector allow you to have a balanced lifestyle as your work hours are more flexible. Certainly, there are hectic days, but the employment domain provides an improved overall balance.

Global Significance – Finance is a worldwide universal language. It is vital for the global economy because it allows professionals to participate in international markets and analyse global developments while contributing to financial stability worldwide.

Job security – A career in finance allows you to select a position that provides the most financial stability. Any field would benefit from an all-around security feature. 

Growth Potential – Finance organisations are always looking for new talent to help them develop. It facilitates career advancement. At the very same time, since money is not usually location-specific, it is a simple alternative to relocate. 

Career Options and Specialisations

Here’s a more in-depth look at finance job alternatives and specialisations for those evaluating choices after the 12th.

Corporate Finance

Corporate finance is a branch of finance which offers financing for business operations. It addresses financial sources, budgeting, choice of investments and capital reorganisation. 

Corporate finance experts are recruited at various levels based on their academic qualifications, developed abilities and interests. You should have a flair for figures and use it to manage money, maximise return on expenditure and introduce smart budgeting options.

Investment Banking

Investment banking is one of the most coveted professional paths in finance. It is also an appealing path concerning professional advancement and compensation package. Investment bankers are in charge of financial remodelling responsibilities. Their job is to work with numbers and information to make judgements that improve corporate operations. 

Portfolio Management

Portfolio management is a blend of business and research since it necessitates business, mathematical concepts and statistics skills. As a portfolio manager, you examine the whole portfolio selection of your customers, who can be organisations or people rather than individual investments.

You also have to influence organisational investment policy and allocation of asset selections. In portfolio management, employed specialists must seek to maximise returns at a specified risk. This would necessitate a SWOT (Strength, Weakness, Opportunity, Threat) assessment of domestic and foreign markets.

Public Accounting

Accounting is a wide research and practice field encompassing many financial services. In broad terms, it is involved with collecting and maintaining funds for a government or private enterprise. Public accountants additionally offer advice and create reports to help businesses cut costs, raise income and improve their financial situation. 

As an accountant, you may operate in-house to assist organisations in getting their accounting records in order, understand their expenditures’ safety and make long-term projections. 

Conclusion

In conclusion, after passing the 12th grade, pursuing a finance career might be a lucrative and satisfying adventure. For those ready to research and delve into the specifics of finances, there are numerous chances. Pursuing specialised finance training courses or a financial management course can considerably improve one’s knowledge base and skill set, laying the groundwork for a prosperous professional path.

Investment banking, economic evaluation, risk management and other fields are all part of the finance industry. As a result, it’s critical to discover and foster specialised interests while being adaptive to the industry’s changing expectations. Furthermore, enrolling in Imarticus’ Postgraduate Financial Analysis Programme comprises not just academic instruction but also hands-on experience, providing learners with the knowledge required to navigate the ever-changing world of finance.

With the rising complexities of the financial market, there has been a significant growth in the demand for professionals as well, who can analyse these competitive landscapes, assess risks, and make well-informed investment decisions. 

As more and more companies are looking for such skilled candidates worldwide, the job role of a finance analyst has become significant more than ever. They are not only required to work with extensive databases and leverage technology to make data-driven decisions but also play a critical role in ensuring compliance with financial regulations and managing regulatory risks.

According to a report, the years from 2022-2032 are likely to witness an 8% growth in the overall employment of financial analysts.

If you’re someone aiming to step into this dynamic world of numbers with a skilled candidature comprising experience and a financial analysis course or certification, then this is the right place to prepare for that final leap – the interview round!

Technical Finance Analyst Interview Questions and Answers 

Below are a few examples of some of the most commonly asked technical questions to finance analysts:

1. What do we mean by financial modelling?

Financial modelling is a process wherein a mathematical representation of a financial situation or asset is created with the help of various tools and techniques. These models are used to make financial forecasts, budgeting decisions, and risk assessments.

2. What is cash flow statement?

Cash flow statement offers a snapshot of a company’s cash inflows and outflows during a defined time frame. This financial statement plays a crucial role in evaluating an organisation’s financial well-being and liquidity.

3. Explain working capital and its different types.

Working capital stands as a pivotal concept in financial management, signifying the distinction between a company’s current assets and liabilities. Various categorisations of working capital exist, including gross working capital, net working capital, regular working capital, and variable working capital, amongst other classification methods.

4. Can you explain the contrasts between a journal and a ledger?

A journal and a ledger are both crucial accounting tools, but they have different purposes and distinct characteristics. As an illustration, a journal functions as a record to document all financial transactions within the accounting system, while a ledger, conversely, is employed to categorise and condense the transactions documented in the journal.

5. What do you mean by cost accountancy?

Cost accountancy is a specialised field within accounting that concentrates on pinpointing, quantifying, examining, and overseeing the expenses accrued by a business. This discipline plays a pivotal role in aiding organisations in making informed decisions, managing costs, establishing pricing strategies, and evaluating overall profitability.

6. Can you explain EBITDA and its role in stock performance analysis?

Earnings Before Interest, Taxes, Depreciation, and Amortization, commonly referred to as EBITDA, stands as a highly prevalent financial metric in stock performance evaluation and financial analysis. It aids investors in precisely gauging a company’s performance within its primary operations.

7. What are the most important factors to consider when evaluating a loan?

When assessing a loan, whether for business or personal work, several factors should be taken into consideration. These factors encompass credit history, cash flow track record, available collateral for loan security, and the interest rate, amongst other considerations.

8. What do we mean by quarterly forecasting and expense model?

Quarterly forecasting refers to the process of predicting a company’s financial performance and outcomes for a specific period. On the other hand, the expense model is a financial tool business organisations use to estimate and manage their expenses systematically.

9. According to you, what is the most effective evaluation metric for analysing a company’s stock?

The price-to-earnings ratio, or P/E ratio as it is more popularly known, is one of the many indicators used by investors to precisely assess a stock’s market value in relation to the company’s earnings. A stock may be overpriced if the P/E is high, whereas an undervalued stock may be indicated by a low P/E.

10. What impact does an increase in accounts receivable have on an organisation’s cash flow?

When a business organisation experiences an increase in accounts receivable, it directly impacts its cash flow. An increase in accounts receivable usually means that the organisation’s customers are taking longer to pay their invoices. This, in turn, carries the potential to negatively impact the organisation’s cash flow because it has provided goods or services but has not yet received the corresponding cash.

11. What do we mean by NPV?

NPV, also known as net present value, refers to the difference between the present value of cash inflows and the present value of cash outflow. 

12. Can you state the definition of capital structure?

Capital structure can be defined as the combination of different sources of funds utilised by a company to finance its operations and investments.

13. What do we mean by goodwill?

Goodwill is an intangible asset that highlights the excess purchase price of a company over the fair market value when one company acquires another. 

14. What are some of the most common components of financial analysis?

A financial analysis comprises several elements, such as capital efficiency, profits, revenue and income statement, inventory turnover, and accounts receivable, amongst others.

15. Can you establish the difference between cash flow and free cash flow?

Cash flow pertains to the cash’s ingress and egress within a business during a defined timeframe. Conversely, free cash flow represents the precise cash amount generated by a company through its operations, excluding the capital expenditures necessary for asset maintenance and expansion.

16. What do we mean by variance analysis?

Variance analysis is a financial tool used by organisations to help them understand why their actual financial outcomes differ from what was expected or budgeted. It is most commonly used in budgeting and performance evaluation.

17. Can you name any three types of financial analysis?

Financial analysis can be segregated into various types depending on its focus and objectives. A few examples of the same include liquidity analysis, vertical analysis, and leverage analysis, amongst others.

18. Why is long-term liability important?

Long-term liability refers to debts that extend beyond one year. By analysing the same, companies can accurately determine their financial position and strength.

19. Name some of the most commonly found data formats in Excel.

Strings, numbers, and currencies are three of the many data formats offered by Microsoft Excel.

20. What is financial benchmarking?

Financial benchmarking is a process companies use to evaluate their financial performance and position. The ultimate goal of this technique is to gain insights into how well a company has performed in various financial arenas and identify any potential areas for improvement.

Conclusion

While interview sessions can be daunting, preparing beforehand is always a wise decision. Hence, we have prepared this list incorporating some of the most frequently asked questions in accounting and financial modelling interviews. In addition, if you wish to build a successful career in finance and stay one step ahead of your competitors, then it is always advisable to opt for financial analysis courses available online.

One such amongst them includes the certified financial analyst course, brought to you by Imarticus Learning. This 4-month duration programme bears several advantages, including industry certification, extensive career support, hands-on training by industry experts, and more.