The construction of a financial model that represents how the business operates, and the likely financial outcomes, given a set of assumptions.
Good financial models can help a business assess the likely impact of taking decisions or changing assumptions, such as increasing turnover, or taking on a new business.
To build effective financial models it is important that the client’s business model is fully understood, and tested against actual or past information.
No financial model can accurately predict the future, but good modelling will enable the decision makers to:
Understand the key business drivers for success,
and to minimise non essential costs and overheads.
We can build financial models that reflect the options open to your organisation. Called scenarios. We can prepare models that allow for different scenarios by changing the assumptions.
Each scenario can then be tested by applying sensitivity analysis.
For more information please contact Martin@helpfulbeancounter.co.uk