Financial Modeling Guide

Learn how to create a Financial Model step by step.

Steps to Create a Financial Model

  1. Define the purpose and audience of the model.
  2. Determine the scope and timeline.
  3. Gather historical data.
  4. Make assumptions and forecast.
  5. Build the financial statements.
  6. Perform sensitivity analysis.
  7. Review and test the model.

Important Components

  • Income Statement
  • Balance Sheet
  • Cash Flow Statement
  • Assumptions and Drivers
  • Sensitivity Analysis

Stay organized and double-check your data for accuracy.

Objective and Target Users

Objective

To provide a comprehensive financial overview and assist in strategic business planning.

Target Users

Business analysts, financial planners, and C-suite executives.

Objective

To deliver detailed financial insights for informed individual investment decisions.

Target Users

Individual investors and financial advisors.