The idea or concept of added value is different in the eyes of clients, but also in the eyes of financial modelling professionals. Especially in the current economic climate, there is an even bigger need for professionals to demonstrate the added value they provide to clients. One area of value-adding importance is incorporating sensitivity analysis into your best practice financial model.
Sensitivity & Scenario Analysis functionality
→ Added Value: fully tailored sensitivity/scenario analyses to measure financial performance
Another value‐added and sophisticated element that Strategize can offer a company is the added sensitivity and scenario functionality with its customised financial modelling solution. This area of a Strategize best practice financial model can assist corporations, to conceptualise how to improve income streams, optimise costs, smooth out the lumpiness of cash flow, and strive for improved profit margins and free cash flow.
Other angles to sense-check your Strategic Plan
The financial model must not only forecast the client company’s future financial performance in an accurate light, but it must also “market” its future financial benefits to lenders or investors. The frenzy and emotive atmosphere surrounding the strategic planning and forecasting process, often partly overlooks or neglects the sense-checking or due diligence process.
Personalising your Best Practice Financial Model
Definitively, personalised is the ability to make or produce something to conform to a person’s individual requirements. The following identifies some more obscure or less understood elements of Excel, which can further improve the personalised added value of a best practice financial model.
Output errors plaguing your Company’s financial model
A financial model is an important resource for management in companies. It can deliver a high-level snapshot into the financial performance of your Company. However its value can be compromised by unchecked financial output errors, which a best-practice financial model will normally flag. There are ways to overcome financial output errors.