What is financial modeling and how can I create one?

What is financial modeling and how can I create one?

Financial modeling is the process of creating a numerical representation of a company's financial performance. You can create one using Excel or specialized software.

What are the key components I should include in my financial model?

Key components include revenue projections, expenses, cash flow, balance sheet, and assumptions that drive your model.

Can you give me an example of a simple financial model?

Sure! A simple financial model might include a revenue forecast based on sales growth, followed by projected expenses and net income.

What tools can I use to build a financial model?

You can use Excel, Google Sheets, or financial modeling software like Adaptive Insights or Planful.

How do I validate my financial model?

You can validate your model by comparing it against historical data, conducting sensitivity analysis, and getting feedback from stakeholders.