Structure of the financial model
Posted: Sun Dec 22, 2024 10:53 am
Although projects and companies use different financial models, they have a common structure, which includes the following blocks:
Input data
Here you need to enter the indicators for calculations, namely:
capital investments , i.e. expenses philippine country code for the acquisition of real estate, equipment, transport, taking into account depreciation;
expenses for rent , staff salaries, purchase of materials, promotion, contractor services, loan payments, taxes;
forecasts of material indicators – this may include the number of customers, average bill, forecast of price changes;
financing : investment of funds by owners, investors, creditors.
This block is necessary to manage the financial model. Then you will adjust the indicators, ensuring a change in results. Input data can be changed, combined into scenarios, creating several options for the development of events at once.
Calculations
In this part of the model, you need to link all the indicators with formulas and perform calculations to generate a forecast of the operating and net profit of the business.
External users of the financial model do not need to understand what formulas are used and how this tool works. It is only necessary to understand that a change in input data leads to an adjustment of output figures due to the formulas of this block.
Financial model calculations
Output data
Here all the information from the calculation block is accumulated and the results are displayed. They can be presented in accordance with the user's wishes: in the form of tables, graphs or both of these formats at once.
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
Step-by-step development of a financial model
In order for the financial model to perform its functions, it is necessary to approach its development with special care. There is no place for haste here, because the future potential of the company depends on it. Let's consider the step-by-step development of a financial model for business.
Input data
Here you need to enter the indicators for calculations, namely:
capital investments , i.e. expenses philippine country code for the acquisition of real estate, equipment, transport, taking into account depreciation;
expenses for rent , staff salaries, purchase of materials, promotion, contractor services, loan payments, taxes;
forecasts of material indicators – this may include the number of customers, average bill, forecast of price changes;
financing : investment of funds by owners, investors, creditors.
This block is necessary to manage the financial model. Then you will adjust the indicators, ensuring a change in results. Input data can be changed, combined into scenarios, creating several options for the development of events at once.
Calculations
In this part of the model, you need to link all the indicators with formulas and perform calculations to generate a forecast of the operating and net profit of the business.
External users of the financial model do not need to understand what formulas are used and how this tool works. It is only necessary to understand that a change in input data leads to an adjustment of output figures due to the formulas of this block.
Financial model calculations
Output data
Here all the information from the calculation block is accumulated and the results are displayed. They can be presented in accordance with the user's wishes: in the form of tables, graphs or both of these formats at once.
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
Step-by-step development of a financial model
In order for the financial model to perform its functions, it is necessary to approach its development with special care. There is no place for haste here, because the future potential of the company depends on it. Let's consider the step-by-step development of a financial model for business.