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Aims and audience:
Financial Model Basics teaches you how to create a basic financial model, from start to finish. The course is targeted at business managers, finance professionals or business students who need to forecast the finances of a business.
We start with the benefits of modelling and the structure to be followed. I then take you through analysing historical data, defining key ratios and building the first sheet - the input sheet. Then we move on to calculations and the output sheets. Finally we look at analysis and sensitivity tables. By the end of the course, you will be able to build a basic financial model.
Format and materials:
All of the lessons are videos in which I talk you through each step of building the financial model. In addition, I give you Excel files in each lesson, so you can download the files and work on the spreadsheets yourself. I also give you PDF or PowerPoint files that contain lesson notes.
-Basic Excel skills
-Basic understanding of financial concepts (eg gross profit, variable costs)
An introduction to financial modelling - what a model is, why we want to build models, who uses them and how we build them.
Guidelines for modelling - structure, layout and formatting.
We summarise historical data using one category using the SUMIF formula.
We continue to summarise historical data, this time using two categories. The SUMIFS formula is the formula we use to do this.
Once we have summary historical data, we are in a position to determine the key ratios that we will use to build the financial model.
We start to build the financial model's first sheet, the Input Sheet.
Once the Input sheet has been built, we construct the calculation sheet.
The last part of building a model is the output sheets, the most important of which is usually a profit and loss statement.
We analyse the outputs of the model in order to :
1) audit the model and correct errors
2) see the future financial effects of business decisions
We look at a very useful way of analysing a financial model's predictions - a sensitivity table.
I give you a challenge to build your own model, using all the tools we have covered in the course.
My name is Andrew and I'm originally from South Africa. I have a two degrees in Accounting and Business Management and I qualified as a Chartered Accountant. I gained extensive experience as a CFO and Financial Manager in several industries from manufacturing to diamond mining to fashion clothing. I have always enjoyed Excel and financial modelling, and honed my skills at companies listed in New York and London. I have several courses on Udemy and enjoy sharing my skills with others..