FINANCIAL MODELING
RESOURCE GUIDE
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Table of Contents
Financial Modeling
Page 1 - Financial Modeling Skills
Page 2 - Financial Modeling Design Principles
Page 3 - Common Types of Financial Models
Page 4 -7 - Financial Modeling Series (ProfitFrog)
Page 8 - Financial Modeling Books
Page 9 - Financial Modeling Online Resources
Page 10 - Financial Modeling Standards
Page 11 - Financial Modeling Follows
Pages 12-14 - Financial Modeling Courses
Pages 15-16 - Financial Modeler's Corner Podcast
Pages 17 - 55 - Financial Modeling Knowledge Hub
Section 2 - Financial Modeling
Financial Modeling Skills
Understanding of accounting
Strong Excel/spreadsheet skills
Ability to read financial statements
Understanding of how to link 3-financial statements
Attention to detail
Presentation skills
Analytical skills
Problem-solving
Forecasting
Ability to simplify complex things (Formulas, models,
assumptions)
1
Financial Modeling Design Principles
1. Plan and design your model upfront
2. Include an assumptions tab/section – ask the right
questions
3. Structure the file (inputs, calculations, outputs)
4. Include Model Instructions
5. Include cover page, executive summary, and table
of contents
6. Use schedules for calculations
7. Build a scenario section for your model
8. Use color coding to distinguish (inputs, links,
calculations, etc.)
9. Never hardcode data into formulas
10. Keep formulas simple
11. Limit file sizes by using best practices
12. Include error checks throughout model
2
Common Types of Financial Models
Financial models can be used for many different purposes
but some of the most common types of financial models
include:
Integrated 3- Statement Model
Discounted Cash Flow
Merger & Acquisiton Model (M&A)
Budget/Forecasting Model
Consolidation Model
Options Pricing Model
Company Comparables Model
Project Model
3
Profit & Loss Statement
Revenue - COGS - Expenses = Profit
Revenue: Money generated from your product(s).
Cost of Goods Sold (COGS): Direct costs necessary to produce
your product.
Gross Profit: Profit after subtracting the Cost of Goods Sold
(COGS).
Operating Expenses: Expenses incurred in the normal
operation of the business.
R&D: Expenses related to research & Development of
product
G&A: General & Administrative expense such as finance,
legal, management team
S&M: Expenses related to selling & marketing of product,
such as sales commissions
Operating Income: Income after subtracting out cost of gods
sold and all operating expenses
Net Income - Income after all expenses
4
Scenario Planning
Brainstorm - Start by coming up with multiple different
1 scenarios that you believe could happen for your business.
Choose Scenarios - After discussing various scenarios
choose which scenarios to model. This can start with
2 ranking scenarios based on which ones you believe will be
most valuable to model.
Develop Model - Build the model or models that allow
3 you to compare each scenario against each other. Focus
on key drivers for each scenario.
Evaluate Scenarios & Develop Game Plan- Review each
4 scenario that you modeled in step 3 and ensure you have a
game plan for the different scenarios.
Implement Game Plan - Implement game plan for
5 scenario selected and continually monitor the business
and adjust plan or implement new scenario when
necessary.
5
A Financial Model
Fed Reserve Definition (SR11-7) - A Quantitative method,
system or approach that applies statistical, economic, financial
or mathematical theories, techniques, and assumptions to
process input data into quantitative estimates."
Investopedia Definition - Financial Modeling is the process
of creating a summary of a company's expenses and earnings
in the form of a spreadsheet that can be used to calculate the
impact of a future event or decision.
Danielle Stein Fairhurst Definition - A complex
spreadsheet - As long as a spreadsheet has financial inputs
and outputs, and is dynamic and flexible, I'm happy to call it a
financial model!
Profit Frog Definition - A spreadsheet or application that
helps us develop forecasts for business decisions so we can
make the decision that optimizes our profits.
6
Profit Frog Series
What is Profit & Loss (P&L) and How to Use It Effectively
in your Business
What is a Financial Model? A Guide to Financial
Modeling
What is a Scenario Planning Template and How Can I
use it?
Learn more at ProfitFrog.com
7
Financial Modeling Books
8
Finacial Modeling Online Resources
Full Stack Modeler - "Promises to transform your
modelling skill set"
Plum Solutions - https://plumsolutions.com.au
Corporate Finance Institute (CFI) - Corporate
Finance Institute | FMVA® | CBCA™ | CMSA®
Wall Street Mojo - Investment Banking, Financial
Modeling & Excel Blog (wallstreetmojo.com)
Financial Modeling Courses & Investment Banking
Courses (wallstreetprep.com)
WSO Courses | Wall Street Oasis
Financial Modeling Certification | Financial
Modeling Institute https://fminstitute.com/podcast
9
Financial Modeling Standards
FAST - (Flexible, Appropriate, Structured,
Transparent) - The FAST standard is structured
design rules for financial modeling.
(https://www.fast-standard.org/wp-
content/uploads/2019/10/FAST-Standard-02c-
July-2019.pdf)
SMART - The Smart methodology provides 10
guiding principles that help ensure your model is
following best practice modeling standards.
(http://info.corality.com/download-10-smart-
guidelines-for-financial-modelling)
BPMS - The Best Practice Modeling Standards is
a modeling standard produced by the
Spreadsheet Standards Review Board.
(http://www.ssrb.org/download)
10
Financial Modeling Follows
Lance Rubin Hedieh Kianyfard
LinkedIn LinkedIn
Danielle Stein Fairhurst Chris Reilly 🟢
LinkedIn LinkedIn
Giles Male Kenny Whitelaw-Jones
LinkedIn LinkedIn
Ian Schnoor, CFA, CFM Viswanathan M B
LinkedIn LinkedIn
11
Modeling Courses by Chris Reilly
5 Simple Steps to a 3-Statement Model -Great for
learning the basics of how to build a 3-statement model
Advanced Three Statement Model Template -Great
template you can use when building 3- statement
models includes instructional videos
Financial Modeling for Private Equity - Great course for
learning how to build Private Equity financial models
3 Statement Bundle - This is a bundling of multiple
courses focused on 3-statement modeling
Note: I highly recommend Chris's courses as I have
learned a lot from watching his courses. However, If
you decide to take one of his courses using the above
links I do receive an affiliate commission.
12
Modeling Courses by CFI
Financial Modeling & Valuation Analyst
Note: I do not earn a commission if you take a course
from Corporate Finance Institute
13
Financial Modeling Institute
FMI: Offers Financial Fundamentals course and the
premier global accrediation for financial modelers.
Foundations in Financial Modeling
Advanced Financial Modeler
Use code FMC15 or Podcast to save 15% on the
Financial Fundaments Course or the FMI Certification
Click here to Purchase the courses
14 Note: If you purchase from FMI I am eligible to earn an affiliate commission.
Financial Modeler's Corner
Financial Modeler's Corner is sponsored by FMI
Use codes (FMC15 or Podcast) to save 15% on the Financial
Fundaments Course or the FMI Modeling Certification.
15 Click here to Purchase the courses
Financial Modeler's Corner
Episode 1 - Ian Schnoor: Why Validate
your Financial Modeling Skills
Episode 2- David Brown: The Future of
Financial Modeling
Episode 3 - Benefits of competing in
the Financial Modeling World Cup -
Insights from World Champion
Diarmuid Early
16
Financial Modeling Learning Series
https://fmwiki.glideapp.io/dl/da19fa
17
List of Articles
Mindset of Embracing the grey
The History of Spreadsheets & Financial Modeling
Excel Spreadsheet vs. Excel model for FP&A
Deal Models vs. Operational Model
Table Based Financial Modelling (TBFM)
ProjectFin deals vs. Other deal models
Project Finance Operational models
Fundamentals of 3-way Cashflow Modelling
SaaS Startup financial models
Scoping a Financial Model Built Primarily for Business Valuation
Financial Model Development
User Friendliness in Financial Modeling
Corporate Finance Theory and Modelling
Data Sourcing for Financial Modeling
Workbook Structure and Hyperlinks for Financial Models
Best Practice Formula Construction for Financial Modeling
18
List of Articles
Error Checks for Excel and Financial Modeling
Special Edition: Financial Modeling for COVID-19 Uncertainty
Model Audit and Model Review - Can I rely on this model?
Special Edition: Dynamic Arrays
Knowledge Regression in FP&A and Financial Modelling (And How
We All Fix it Together)
Developing a Portfolio of Key Performance Indicators (KPIs)
How Sensitive is Your Model to Impacts?
Scenarios Analysis the Best Cure for Sensitivity
Simulations
Macros/VBA
Getting a Financial Modelling Qualification
The World Cup of Financial Modeling (FMWC E-sports)
Financial Modeling Standards
Automation in Modelling
How Financial Models Can Turn Lives Around
19
List of Articles
Visual Influence and Story Telling
Excel, Analytics & Power BI
Google Sheets vs. Excel for Financial Modeling
The Implications of not Following a Modeling Standard
Completion & Ongoing Alignment of Models Built
LAMBDA - the New Excel Paradigm for Modeling
Building a Financial Modelling Strategy for a Business
20
Mindset of Embracing the Grey
Embrace the Grey
Lisa Barham
Lance Rubin
21
The History of Srpeadsheets & Financial
Modeling
History of Spreadsheets
Dave Theron Colin Human
Lance Rubin
22
Excel Spreadsheet vs. Excel Model for
FP&A
Excel Spreadsheet vs. Excel Model
Cindy Rodgers
Lance Rubin
23
Deal Model vs. Operational Model
Deal Models vs. Operational Model
Ruby Liu
Lance Rubin
24
Table Based Financial Modeling (TBFM)
Table Based Financial Modeling
Craig Hatmaker
Lance Rubin
25
Project Finance vs. Other Deal
Modeling
Project Finance vs. Other Models
Matthew Bernath
Lance Rubin
26
Project Finance Operational Models
Project Finance Operational Models
Matthew Mehid Assadi-
Bernath Moghadam
Lance Rubin
27
Fundamentals of 3-way Cashflow
Modeling
3-way Cashflow Modeling
Furgan Baig
Lance Rubin
28
SaaS Startup Financial Models
SaaS Financial Modeling
Chironjit Das
Lance Rubin
29
Scoping a Financial Model Built
Primarily for Business Valuation
Scoping a Financial Model
Joris Kersten
Lance Rubin
30
Financial Model Development
Financial Model Development
David Thompson
Lance Rubin
31
User Firendliness in Financial Modeling
User Friendliness in Financial Modeling
David Thompson
Lance Rubin
32
Corporate FInance Theory and
Modelling
Corporate Finance Theory
David Thompson
Lance Rubin
33
Data Sourcing for Financial Modelling
Data Sourcing for Financial Modeling
Paul Barnhurst
Lance Rubin
34
Workbook Structure and Hyperlinks for
Financial Models
Workbook Structure
Jennifer Harrison
Lance Rubin
35
Best Practice Formula Construction for
Financial Modeling
Best Practice Formula Construction
Jennifer Harrison
Lance Rubin
36
Error Checks for Excel and Financial
Modeling
Error Checks for Financial Modeling
Maarten Bessems
Lance Rubin
37
Special Edition: Financial Modeling for
COVID-19 Uncertainty
Financial Modeling for Uncertainty
Danielle Stein Fairhurst
Lance Rubin
38
Model Audit and Model Review
Model Audit and Model Review
Ian Bennett
Lance Rubin
39
Special Edition: Dynamic Arrays
Dynamic Arrays
Jeff Robson
Lance Rubin
40
Knowledge Regression in FP&A and
Financial Modelling (And How We All
Fix it Together)
Knowledge Regression in Modeling
Rob Trippe Andrew Codd
Lance Rubin
41
Developing a Portfolio of Key
Performance Indicators (KPIs)
Developing a Portfolio of KPIs
Betsy Macclean
Lance Rubin
42
How Sensitive is Your Model to
Impacts?
How Sensitive is Your Model
Carl Seidman
Lance Rubin
43
Scenario Analysis the Best Cure for
Sensitivity
Scenario Analysis
Carl Seidman
Lance Rubin
44
Simulations
Monte Carlo Simulation
Kerry Mayes
Lance Rubin
45
Macros/VBA
Macros/VBA
Benjamin
Marcus Small
Stoter
Lance Rubin
46
Getting a Financial Modelling
Qualification
Financial Modelling Qualifications
Danielle
Mohammed
Stein
Mostafa
Fairhurst
Lance Rubin
47
The World Cup of Financial Modeling
(FMWC E-sports)
Financial Modeling as a Sport
Lance Rubin
48
Automation in Modelling
Automation in Modelling
Benjamin
Stoter
Lance Rubin
49
How Financial Models Can Turn Lives
Around
How Modelling Benefits Lives
Russ Wood Alex Artajaya
Lance Rubin
50
Visual Influence and Story Telling
Visual Influence & Storytelling
Aaron Parry Jeff Robson
Lance Rubin
51
Excel, Analytics & Power BI
Excel, Analytics, & Power BI
Khaled Chowdhury
Lance Rubin
52
Google Sheets vs. Excel for Financial
Modeling
Google Sheets vs. Excel
David Benaim
Lance Rubin
53
The Implications of not following a
MOdeling Standard
Lance Rubin
54
Aritcles Yet to be Written
Completions & Ongoing Alignment of Models
Built
LAMBDA - The New Excel Paradigm for Modeling
Building a Financial Modeling Strategy for a
Business
55
The FP&A Guy Services Offered
Contact me at pbarnhurst@TheFPandAGuy.com if
you are interested in any of the below services:
Corporate training to include Excel, Data
Visualization, Storytelling, Soft skills, Leadership,
Financial and Business Comprehension, and FP&A
Training
FP&A consulting services (budgeting/forecasting,
financial model, Org Assessment, data analysis
Content creation for your finance businesses
(Webinars, Blogs, LinkedIn Posts, White Papers)
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