Financial Modelling - A Workshop
All organisations have to pay attention to the money.
Financial models create the link between what people in the organisation do, or intend to do, and delivery of the financial outcomes.
This workshop is aimed at finance and accounting personnel who are required to model the expected financial outcomes of projects, options and decisions that their organisation or their client organisation faces, or who are asked what the organisation has to do in order to achieve particular financial goals, such as in budgeting. It explores the powerful ways in which Excel can be used to deliver these results more easily and effectively.
What You Will Learn
This workshop will cover the following:
- Part I - Introduction
- What does a financial model do?
- Different types and complexity of model - which will best suit my purposes? The pros and cons of Excel
- Part II - Treating model building as a project
- Reminder of basic project management techniques so that your model does what its customers have agreed it should do and is built on time and to cost
- Who owns the model? Responsibility, accountability
- Part III - Structure of the Financial Model
- Best practice: structuring the model to minimise errors, to make clear how it functions, and to deliver with clarity the outputs required by your customers
- Excel facilities and functions that make your models easy to build, modify and document
- Introduction to VBA. The kind of things this programming language allows you to do if you want a Rolls Royce model
- Part IV - Modelling techniques
- The key role of forecasting - different techniques we can use, including scenario planning
- Financial statements: how the Balance Sheet, income and cash flow statements relate to one another
- How to convert 'what we do' into financial numbers: the concept of cost and revenue drivers
- What quantified operational goals do you have to achieve in order to meet your financial objectives?
- Using financial modelling in the budget
- Project appraisal and company valuation
- Part V - Operating and maintaining the Financial Model
- Ways to incorporate uncertainty into the model to provide a range of financial outcomes that reflect the risk profile - sensitivity analysis
- Checking that the model does what you want
- Documenting the model so it is easy to follow it and modify it