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Advanced Financial Modeling Best Practices: Hacks for Intelligent, Error-Free Modeling

This post was written by Alberto Mihelcic Bazzana, Finance Expert for Toptal.

Submitted by Michelle Young at Toptal

Edited by Lynn Patra

Executive Summary

What Are Recommended Strategies for Building Financial Models?
The Top Tricks and Tips for User-Friendly, Smart, Error-Free Modeling
How Can a Finance Expert Help You/Your Company?

Introduction: A Financial Model

Financial models are an indispensable part of every company’s finance toolkit. They are spreadsheets that detail the historical financial data of a given business, forecast its future financial performance, and assess its risks and returns profile. Financial models are typically structured around the three financial statements of accounting—namely: income statementbalance sheet, and cash flow statement. The management of most corporations rely, at least in part, on the details, assumptions, and outputs of financial models, all of which are critical to said companies’ strategic and capital decision-making processes.

This article serves as a step-by-step guide for the novice and intermediate finance professional looking to follow expert best-practices when building financial models. For the advanced financial modeler, this article will also showcase a selection of expert-level tips and hacks to optimize time, output, and modeling effectiveness. Let’s begin. Read more of this post

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