Financial Modelling For Forecasting, Budgeting & Financial Statements in Excel 

DURATION:  2 DAYS (16 HOURS)

DIFFICULTY LEVEL: ADVANCED

OUTLINE

1. Financial Models

Introduction & types of financial models

Program scope

Financial model structure

Budgeting & forecasting

The budgeting & forecasting process

Essential tools for a successful financial model

2. Forecasting methods

Qualitative and Quantitative forecasting methods

Naïve method, Simple Moving Average, Simple Weighted Moving Average, Exponential Smoothing, Correlation, Regression Analysis

Forecast Sheet function (applies to Excel 2016 & above), Multiple Regression Analysis

Coefficient Correlation, Coefficient of Determination

FORECAST, CORREL

Central Limit Theorem, Normal Distribution

Using Excel’s Data Analysis tools for Exponential Smoothing, Moving Average and Regression Analysis

3. Building the budgeting & forecasting financial model

Building revenue & expense drivers

Revenue & cost projection

Modelling the Income Statement & supporting cost centre sheets

Incorporating headcount & payroll and fixed assets budgets

Projecting the balance sheet

4. Cashflow

Working capital components, ratios & cash conversion cycle

Cash flow projection using the direct method

Free Cash Flow (FCF)

5. Controls on form

Data validation lists and essential Form Controls

Incorporating Form Controls into financial models & sensitivity analysis

Advanced Conditional Formatting techniques

6. Consolidating & rolling up historical accounting data

Techniques in rolling up massive number of cost centres worksheets into a single report

Techniques in extracting and consolidating historical data for revenue budgeting

Building sensitivity analysis mechanism into forecast templates

7. Important Excel functions

Essential Excel functions in financial modeling- VLOOKUP, SUMIF, SUMIFS, IFERROR, INDIRECT, IF, IFS

Multiple tools and techniques in automating mundane, repetitive tasks in financial modelling processes

8. Managing multiple budget versions

Version controlling your budget forecast spreadsheets

Fitting in multiple budgets into your financial model