19.4. Conclusion
Computer-based models and spreadsheet software are in wide use for budgeting in an effort to speed up the process and allow budget analysts to investigate the effects of changes in budget assumptions.
Financial models comprise a functional branch of a general corporate planning model. They are essentially used to generate pro forma financial statements and financial ratios. These are the basic tools for budgeting and profit planning.
The financial model is a technique for risk analysis and "what-if" experiments. The model is also needed for day-to-day operational and tactical decisions for immediate planning problems.
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