Of course, this question presumes that you have a financial model!
It also presumes that the senior management team of your company understands and enjoys the benefits of an effective, relevant financial model.
As you are all probably aware, effective, efficient financial models that deliver reliable and accurate results are based on the application of four pillars of knowledge, namely:
- applicable Excel functions and techniques
- correct accounting and basic financial statements
- correct corporate financial metrics and calculations
- utilisation of best practice modelling methodology
An overarching principle, central to the production of a dependable model, is a full, in depth understanding and comprehension of the business case pertinent to the model purpose.
It is the genesis of the model input assumptions, the drivers of all aspects of the model – dare I say – the model bible.
The process of financial modelling has developed significantly in the past decade, thanks to the contributions of numerous individuals, and the introduction the FAST standard, the creation of John Richter and Morten Siersted – F1F9.
The FAST standard is a framework for financial modelling that emphasizes flexibility, appropriateness, structure and transparency. It helps create models that are easier to understand, maintain and verify.
Goalfix Financial Modellers adopted the FAST standard in 2014 and have incorporated it in all our model building activities and training courses.
We have also developed a simple questionnaire titled “Model Evaluator” which is available on our website.
Here is the link – Model Evaluator
Invitation – Free Access
We invite all persons who use financial models or build financial models to receive a free model evaluation using our MODEL EVALUATOR.
Simply login using the link above, follow the prompts, and you will get an immediate, unbiased evaluation of your model.
If your model score is 90 + – congratulations you have an excellent model.
If, on the other hand, you see the need for improvement, and would like some professional assistance, send a mail to contact [email protected] – and we will be delighted to assist you.
Colin Human CA(SA)
Goalfix Financial Modellers
