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The Basics of Financial Modeling by Jack Avon

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CHAPTER 2

Financial Modeling Best Practices

Often clients will commission me to look at their existing financial models and make recommendations as to how the models can be expanded or adapted to accommodate changes in their business. Sometimes I am even asked to completely rebuild a model because it does not fit the purpose for which it was built. In almost all of these models that need rebuilding , the lack of good planning is very apparent—especially once the model’s structural features are examined. This chapter will give insight into those features and in doing so will equip you with a layer of knowledge about what makes a good financial model.

What Are the Best Practices of Financial Modeling?

There are a number of financial modeling

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