Corporate budgeting in Excel - how we do it at F1F9

Corporate budgeting: understanding the complexities

The budgeting process is often criticised for being time-consuming, adding far too little value and being out of date before the printer ink is dry.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...
Financial model maintenance

Five reasons to outsource financial model maintenance

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...
Average Internal Rate of Return

Average Internal Rate of Return (AIRR)

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...
Modelling Balances

How to Model Balances in Excel

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...