Financial Modeling is the process of creating a summary of a company’s expenses and earnings in the form of a spreadsheet and is then used to forecast its financial performance.
It makes it easier for startups to understand their finances and helps them manage money well.
Additionally, if done rightly, financial modeling result in better financial decision making. Top executives in a business or a startup use financial models to make decisions about:
Note: Financial Modeling is a very complex process, and one should always consult financial modeling professional.
It is the most basic setup for financial modeling, and links the three statements-income statement, balance sheet, and cash flow statement into one dynamically connected financial model.
It is used to predict outcomes regarding sales, supply and demand, consumer behaviour and more.
It focuses heavily on the income statement and is used to prepare the budget together for the coming year(s).
DCF model is used for analyzing the present value of an investment/company/cash flow by adjusting future cash flows to the time value of money. Upon analysis, DCF gives the present fair value of assets/investments.
It is used to ascertain whether or not there exist benefits to an amalgamation.
As a front runner in the Indian startup ecosystem, TheStartupLab provides entrepreneurs and startups with assistance in Financial Modeling. Our team follows the best practices for building practical financial models and forecasts for your startup business.
We believe that what gets measured, gets managed. So, if you need Financial Modeling for startup, contact us.
We, with our team of financial modeling experts, will help you prepare financial models, which you can leverage to Forecast customer growth by channel, budgeting and forecasting, raising capital, management accounting, priority-based capital allocation, etc.