All courses available in-class or via remote login

Coins and pens

8 SMART Tips for Financial Modelling

January 18, 2018

See below for our 8 top picks of smart financial modelling guidelines to live by

 

1- Ownership & Protection

In order to minimise risk and error it’s important that only one analyst builds and owns the model. Make sure that all old model versions are saved in a separate folder, these act as a back-up. If you password protect your cells containing formulas this will help to minimise end-user errors.

 

2- Set-Up

In the set-up of your workbooks make sure that you avoid having multiple workbooks where possible. All references to external links should be clearly identified and imported to an “input sheet”. Once this is complete reference as required.

Setting up your work books correctly is important in order to provide more transparency.

 

3- Structure

One of the best ways to structure your financial modelling workbooks is to set up your menu, inputs, calculations and outputs &reports in that order. In your menu make sure there are hyperlinks to all relevant sheets. For your inputs make sure that you clearly identify your cells for data entry. Your calculations are the engine room of the model and should be protected. Finally set up your outputs and reports.

 

4- Inputs

When setting up your inputs it’s important to make sure that they are separated from your calculations. This way users know exactly where they need to enter data. It also reduces the likelihood of a user inadvertently tampering with calculations. When inputting data it’s also important to make sure that you only input the data once and then always refer back to this cell. Therefore, future changes to this input only have to be updated once and this in turn avoids potential inconsistencies.

 

5- Formatting

When formatting your work books make sure that you are consistent in your formatting. This makes it easier for co-workers to get a handle on a new model if they are familiar with the formatting.

Consistent color coding and formatting of inputs is also a must.

 

6- Calculations

When it comes to calculations there are a number of things to keep in mind. Have a look at our list below:

- Simple is best - Always opt for formulas over VBA where possible - Aim to have one consistent formula on each row or column - Keep column and row headings consistent - Test your calculations as you build, add error checks - Limit the use of modelling tools such as spinners as they introduce an extra layer of complexity

7- Outputs

For your outputs, we recommend one summary sheet displaying all key results and metrics. You can always add additional reports, charts and dashboards to suit business needs.


8- Documentation

Models should be logical and self-explanatory but may require supporting documentation. Make use of comments and add user guidelines where necessary for more complex calculations.

 

Take a look at out Specialist Microsoft Excel Financial Modelling course to learn more skills.

Contact Us

What is Remote Training?

Valued by Individuals

4.8/5
Over 23062 Reviews
great information, good coarse -Project Advanced Perth
Damian - Project Advanced, .
well worth doing very helpful -Project Advanced Perth
Marc - Project Advanced, .
Very clear instruction from Jenny and she was very helpful. A very enjoyable intro course to Excel and I learned many tips which will be extremely helpful at work. -Excel Beginner Perth
Dani - Excel Beginner, .
I loved the course! It was really helpful and Jenny was a great teacher :) -Excel Beginner Perth
GRACE - Excel Beginner, .
I really enjoyed this course! very useful :) -Excel Beginner Perth
Renee - Excel Beginner, .
Very informative session on introducing Power BI to people that have never used Power BI. Steven presented it in a very clear and concise manner, at a slow and gentle pace for the group to understand. Steve was able to address most of the questions that the team ask him, and for questions he do not know, he looks into and come back with answers. It shows his tenacity and dedication in educating the team. He regularly makes sure the team is on track before proceeding, making sure that people are not lost or confused. Thanks -Power BI Beginner Remote Online
Jack - Power BI Beginner, .
Good Session, Ken is very Knowledgeable and fast paced, but unable to assist anyone who falls behind. -Excel Intermediate Melbourne
Darren - Excel Intermediate, .
It was good course but I have problems with my technical so ,......I will do it again face to face. thanks Kevin -Excel Intermediate Melbourne
phuong - Excel Intermediate, .
The pace of the training was great - not too fast or slow. John is very polite and patient. -Power Point Level 1 & 2 Remote Online
Bunnary - Power Point Level 1 & 2, .
Terrific instructor and very nicely structured course -Power BI Beginner Remote Online
Henry - Power BI Beginner, .
Very helpful course. I learnt a lot of fundamental skills which will assist productivity in both PowerPoint and Office more broadly. -Power Point Level 1 & 2 Remote Online
Sean - Power Point Level 1 & 2, .
Very insight as a basic starting course, could be a little too quick if the class is not as savvy in similar software -Power BI Beginner Remote Online
Vincent - Power BI Beginner, .
informative course. Feel like i've got a good grasp of the basics. Looking forward to trying to build a few reports with our existing data. Bring on the intermediate course! Thanks. -Power BI Beginner Remote Online
Brendan - Power BI Beginner, .
Great training, very informative and the day was not boring at all! Very informative. My work will improve out of sight from this. -Excel Intermediate Melbourne
Emily - Excel Intermediate, .
Great course -Power BI Beginner Remote Online
Nathan - Power BI Beginner, .
Very informative and interesting, really enjoyed the class. Really worth the investment. Thank you Jason -Analysis & Dashboards Brisbane
Cheryl - Analysis & Dashboards, .
I think this was a good training. it was a little slow at times but this is probably because I knew more about powerpoint than I thought I did. I think it would be beneficial for me to do a more advanced training. I did pick up some good tips though. -Power Point Level 1 & 2 Remote Online
Laura - Power Point Level 1 & 2, .
Learnt some helpful tricks and tips to make processes more efficient/faster for me, as well as just general navigating/understanding different parts of Powerpoint we can use. -Power Point Level 1 & 2 Remote Online
Veronica - Power Point Level 1 & 2, .
Learnt quite a few new things which will assist in my day to day work Informative and helpful -Analysis & Dashboards Brisbane
Catherine - Analysis & Dashboards, .
Ken was wonderful at explaining everything -Excel Intermediate Melbourne
Lauren - Excel Intermediate, .

Trusted by Business

Procured by Government

Map of Australia