The advent of a new year is a great opportunity to put in place some aims and goals. Financial modelling should be no different. Here are some things, which you might want to focus on for your New Year’s Resolutions as a financial modeller.
Financial Spreadsheet Risk
Reliance on erroneous spreadsheets by corporations for inaccurate financial reporting and business decision making has been reported in the financial media, because it has often resulted in profit downgrades, share price falls and a revision of corporate financial statements.
Audit Spreadsheet Risk
Audit spreadsheet risk or simply audit risk, like human spreadsheet risk, can be a source of material financial and business cost to companies; thanks to erroneous financial models or spreadsheets. There are three types of audit risk: control risk, detection risk and inherent risk.
Case Study – Internal Control spreadsheet tool to manage Cash Payments
Strategize was approached by a real estate company to build a business model, which could improve the internal controls or corporate governance surrounding the payment of accounts payable invoices.
Why won’t my financial model balance?
The creation of a best practice financial model can be both time-consuming and immensely challenging. Although it is important to create a credible forecast or plan, the financial modeler must ensure the financial model is correct and not out of balance. There are some basic things to always consider when composing a financial model for a client or internal purposes.
Making Sense of the Sensitivity Tools for Strategic Planning
The What-if or sensitivity analysis tools in Excel are often overlooked by financial modelling professionals. The tools represent immense analytical value during a financial modelling exercise, no matter if it is for corporate valuation, strategic planning or management accounting/reporting purposes.