Financial modeling goals & Forecasting

Find out about the best practices of financial modeling services for everyone, from startup business ideas to Fortune 500 corporations. Following Alan Lakein’s quote, “Financial planning is bringing the future into the present so that you can do something about it now,” our goal is to reflect the future outcomes in a spreadsheet. And so that financial modeling will reflect your business plan or business model in figures.

We build appropriate financial projections to meet the most specific customer needs. Our financial models are easy to use even though they are sophisticated.

During the financial modeling process, we will convert the structure of your business model into a list of main assumptions and cause-and-effect relationships. As a result, you will be able to manage forecasted outputs and core KPIs.

What do you get with financial modeling?

Our comprehensive financial models contain:

• One-page Dashboard report that allows you to input the main assumptions and see immediate impact on a financial snapshot and core KPIs on charts.
• One-page Summary that includes monthly reports for the chosen year, and annual for all five years with color charts. Investors are usually comfortable with this kind of output.
• All must-have financial statements, e.g., the Profit & Loss (Income Statement), Balance Sheet, and Cash Flow statement.
• Analysis of Sensitivity that gives you an idea of the impact of changing your one or two core assumptions of profits during the first through fifth years.
• Breakeven Analysis that shows when exactly you are going to reach the breakeven point.
• Our suggestions of key performance indicators for the SAAS, e-commerce, real estate, and any other industries. Thus, you’ll be able to benchmark your KPIs against other companies in your industry. Understanding this will inform you and your investor about the factors that have the biggest impact on your forecast.

More advantages

• We split all the assumptions by categories. Usually, we highlight customer growth and count, revenue sources and pricing, costs, payment terms, capital expenditures, and headcount categories. Most of a particular category’s assumptions you can find on a single sheet so that it is easier for you to see and understand links and connections between different figures. Communicating with you will help us determine factors and assumptions that are the most important for your business model.
• Independently created direct and indirect cash flows schedules. This helps to see the data from both perspectives. Furthermore, independently created statements make error-checking much easier in order to verify the model’s purity.
• All models’ calculations are done on monthly basis. This is required to ensure that your business raises enough capital to sustain cash flow peaks, taking into consideration various factors such as long accounts receivable cycles, inventory refill, capital purchases, and other events.
• Group Operating Expenses, distinguished into Variable and Fixed Costs or into departments. This enables you to compare expenses as a part of revenue with other players in your industry, no matter whether you choose to group by departments or by expense fluctuations.
• A complete forecast that is printable with a single mouse click, including a cover page and table of contents.

We can build a new financial model from scratch, or adjust our template to fit any type of business depending on the situation. We have the experience to help you get it right.