There is a lot discussed about the importance of best practice financial modelling. However financial professionals need to be aware of what constitutes the opposite; a worst practice financial model and how it can be transformed into one that is deemed best practice.
Human Spreadsheet Risk
Arguably the biggest driver of business cost, it is the type of risk caused by human error in financial spreadsheets. There are many ways financial modellers can undermine the accuracy and credibility of a financial model.
Financial modelling techniques between Microsoft Excel and Excel for Mac
Although Excel for Mac 2011 has greatly improved functionality that mirrors its Microsoft cousin, there are still many subtle aspects that can stump a financial modeller, when creating a seamless spreadsheet between the two operating systems.
Advanced Internal Controls in Financial Modelling
The rich functionality of Microsoft Excel provides an array of approaches to tighten internal controls of corporate spreadsheets. Some of the below techniques may seem a bit extreme and over the top in some examples, but in other instances they will greatly tighten the management of a financial model.
Under the bonnet of a best practice financial model
There is a myriad of tangible and intangible features, which make up a best practice financial model. Whilst the tangible elements are self-evident, such as the workbook structure, cosmetic presentation and model infrastructure flexibility. The key intangible aspects are less evident.
The assumed killer of Strategic Plans
The annual strategic planning “season” in a company ushers in an extensive focus on crafting and crystal balling a company’s future financial direction. However the Plan’s intrinsic value and application for a company can be destroyed if the underlying assumptions are totally incorrect.