21/12/2018
5 Differences Between Excel and Financial Modelling
Timothy Here,
Recently, I announced the launch of a new
and updated financial modelling video. However,
you are yet to take action for reasons best known to you.
You may be absolutely right or you may be wrong
but let’s examine 6 differences between
Financial Modelling and Excel since you
are currently judging by what you know.
You may have thought that a financial model
was basically just an Excel spreadsheet,
but as you know, not every spreadsheet
is a financial model. People can and do
use Excel for all kinds of purposes. So,
what makes a financial model distinct from
a garden-variety spreadsheet? In contrast
to a basic spreadsheet, a financial model is
1. Is more structured. A financial model
often includes a set of standard financia
l forecasts — such as a profit-and-loss statement,
a balance sheet, and a cash flow
statement — which are based on those assumptions.
2.It Is dynamic. A financial model contains inputs that,
when changed, impact the calculations and, therefore,
the results. A financial model always has built-in
flexibility to display different outcomes or final
calculations based on changing a few key inputs.
3.Shows forecasts. Financial models are
almost always looking into the future.
Financial modelers often want to know
what their financial projections will look like down the road.
4.It is scenarios based (hypothetical outcomes) Because
a model is looking forward instead of backward,
a well-built financial model can be easily used to
perform scenario and sensitivity analysis.
What would happen if interest rates went up?
How much can we discount before we start making a loss?
5.A financial model will use relationships between several
variables to create the financial report, and changing any
or all of them will affect the output. For example,
Revenue in Month 4 could be a result of Sales
Price X Quantity Sold Prior
Month X Monthly Growth in Quantities Sold.
Why Financial Model Matters a lot to You?
Financial models are usually built to solve
real-world problems, and there are as many
different financial models as there are real-world
problems to solve. Generally, as an accountant
you use Excel for the purpose of finance you
will need a financial model for yourself.
As a financial modeler you can put substance
to the idea by augmenting the details enough
to get a working model upon which decisions
can be made, investor funds can be gained,
or staff can be hired.
For example, financial models can help a
production manager decide whether to
purchase a new piece of machinery.
Now that you have understood what
Financial Model is all about, you can easily
decide what is right for you then get your 2019
started on a brighter note by getting your
own Comprehensive Financial Modelling Videos
at 50% discount Click on the below link or
call 08082366372,08090820787 to Order Now
before it ends on 27th December, 2018.
http://platinumgoldsolutions.com/financialmodel/
Dedicated to your Growth and Success
Tim Jibodu ACA, ACTI
P.S. I sincerely understand that we are in a
festive season that will pass away after the next 14 days.
So, you need to invest in yourself, secure your future,
become indispensable NOW; not tomorrow for Luck,
chance and opportunity is not within your control.
What you can control is your growth
Click on the below link or call 08082366372
,08090820787 to Order Now before it ends
on 27th December, 2018.
http://platinumgoldsolutions.com/financialmodel
Always Plan Ahead for it was not Raining When Noah Built the Ark. Invest in yourself and in a rare Skill by Becoming a Financial Modeling Expert in 3 Days.
