The budgeting process is often criticised for being time-consuming, adding far too little value and being out of date before the printer ink is dry. Arguments are also made against forecasting: either the outturn result is known (in which case why bother forecasting in the first place?) or the...
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A basic mastery of financial modelling focuses on the presentation of three financial statements: Income Statement; Balance Sheet; and Cash Flow. A good model will be dynamic, capable of running sensitivities and introducing scenarios. Bump up the price and watch the cash flows rise.
Financial...
We work with plenty of clients on building data-heavy enterprise models to meet their needs. The models include functionality to accommodate actual financial figures, budgets and forecasts. A recent example is a large business model with five subsidiaries. It has the ability to store budget copies...
That’s because, when it comes to formulas, we aim for simplicity and readability.
Complex functions with poor audit trails (I’m thinking of OFFSET, for example) are less useful when your primary objective is transparency.
Here are 12 functions that we use again and again in building...
We are pleased to confirm our presence in the Gulf with a team based in Dubai. Our full range of services will be available across the region: training, model build, and model review / risk management. The Dubai office will be led by Omar Shaker who has recently joined our senior team.
An introduction by F1F9: We were approached by Thierry Renard and Carlo Alberto Magni and were intrigued by what they had to say: a new approach to calculating an internal rate of return. What's more, they were illustrating the application of the Average Internal Rate of Return ("AIRR") using Excel...
How do I know what is going on in my kitchen when I am upstairs in my bedroom?
If that's a question that is a concern to you, then you might have considered some sort of surveillance device. A web cam, perhaps.
Such a device exists in Excel – designed to answer the question: "how do I know...
It’s always interesting to pass the time with a fellow traveller on a long-haul flight. In this instance, I was on a regular trip to New Delhi to visit F1F9’s head office.
My neighbour was the head of internal audit for a FTSE 100 company. We talked about Excel, of course, and how a business...
We are launching a new version of F1F9’s keyboard shortcuts. You will find them available to download in an Excel workbook just below.The shortcuts are stored as macros in the workbook. On opening the workbook, you may need to click on “Enable Content” or “Enable Macros” to make sure things run properly.
“If you want to make enemies, try to change something” Woodrow Wilson
Despite what we modelling geeks might like to think, people are both rational and emotional. Which makes standardised modelling practices difficult to implement. Our ebook 'How to Standardise Modelling' helps modellers...
There are two basic types of line item in financial models – flows and balances.
Balances are amounts at a point in time. Balances can be financial or non financial.
Every balance has similar properties. This blog explains what those properties are, and gives a standard model component that...
The following text is taken from our ebook - 10 signs spreadsheets are killing your finance function:
#4 Amnesia
SYMPTOMS:
Last minute panic buying of birthday presents.
Missed gym appointments.
You hear ‘aren’t you meant to be somewhere else?’ more often than you’d like.
Family...
Errors will happen. It is an unfortunate fact of life, whenever humans are involved with complex data manipulation and modelling, errors occur.
A financial modelling manager needs to create an environment where any member of the modelling team can feel comfortable notifying them as soon as an...