Financial modelling is the process of creating a mathematical representation of a company's financial situation. It involves building a forecast that captures the financial performance of a organisation typically using spreadsheet software like Excel.
Financial modelling can be used in a wide range of applications, including investment analysis, valuation, budgeting, forecasting, and risk management. It is a powerful tool that enables businesses to make more informed decisions, optimise their financial performance, and achieve their strategic objectives.
Financial modelling is a critical aspect of business planning and decision-making. It involves creating a mathematical representation of a company's financial situation, which enables stakeholders to forecast future performance, analyse various scenarios, and make informed decisions based on data-driven insights.
A financial model can help identify potential risks and opportunities, assess the feasibility of new projects, and determine the best course of action in various scenarios.
By creating financial models, organisations can make better-informed decisions about allocating resources and optimising their financial performance. In addition to aiding decision-making, financial modelling is also important for communicating financial information to stakeholders, such as investors, lenders, and board members.
Overall, financial modelling is an essential tool for organisations to improve their financial performance, optimise decision-making, and communicate financial information effectively to stakeholders.
Abacus provides a range of services related to financial modelling and financial analysis. Each client will have unique needs and circumstances. Here are some of the common services that we may offer:
Financial Analysis: Analysing exisiting financial data to identify trends, patterns, and relationships, and using this information to make informed decisions.
Valuation: Determining the value of assets, or organisations, using various methods such as discounted cash flow analysis, or comparables analysis
Budgeting: Developing and monitoring budgets, forecasting future revenue and expenses, and monitoring actual results against budget targets.
Templates and Training: Establishing efficient systems for generating regular reports and providing training to ensure their continued operation.
Other financial modelling: scenarios analysis, peer review, "best practice" recomendations, forecast financial performance, and inform strategic decision-making.
The cost of financial modelling or analysis depends on a number of factors, including the complexity of the project, the scope of the analysis, the level of detail required. The task can range from relatively simple projections to complex simulations involving multiple variables and scenarios. The more complex the project, the more time and effort will be required to build an accurate and reliable financial model.
Contact us to request a personalised quote tailored to your specific needs and budget.
Write to us at alan@financialmodels.co.nz