For Dummies Book CoverFinancial Modeling in Excel For Dummies by Danielle Stein Fairhurst is your comprehensive guide to learning how to create informative, enlightening financial models today. Not a math whiz or an Excel power-user? No problem! All you need is a basic understanding of Excel to start building simple models with practical hands-on exercises and before you know it, you’ll be modeling your way to optimized profits for your business in no time. Excel is powerful, user-friendly, and is most likely already installed on your computer―which is why it has so readily become the most popular financial modeling software. This book shows you how to harness Excel’s capabilities to determine profitability, develop budgetary projections, model depreciation, project costs, value assets and more. You’ll learn the fundamental best practices and know-how of financial modeling, and how to put them to work for your business and your clients. You’ll learn the tools and techniques that bring insight out of the numbers, and make better business decisions based on quantitative evidence. You’ll discover that financial modeling is an invaluable resource for your business, and you’ll wonder why you’ve waited this long to learn how! Companies around the world use financial modeling for decision making, to steer strategy, and to develop solutions. This book walks you through the process with clear, expert guidance that assumes little prior knowledge.

  • Learn the six crucial rules to follow when building a successful financial model
  • Discover how to review and edit an inherited financial model and align it with your business and financial strategy
  • Solve client problems, identify market projections, and develop business strategies based on scenario analysis

Create valuable customized templates models that can become a source of competitive advantage From multinational corporations to the mom-and-pop corner store, there isn’t a business around that wouldn’t benefit from financial modeling. No need to buy expensive specialized software―the tools you need are right there in Excel. Financial Modeling in Excel For Dummies gets you up to speed quickly so you can start reaping the benefits today! 

Purchase the bundle of online training courses from Plum Solutions and get this book included. The Excel files used in this book can be downloaded here.

The cheat sheet for “Financial Modeling in Excel for Dummies” is now available!  All Dummies books include cheat sheets which summarise important themes or content from the book into a single place. The cheat sheet is publicly available on the Dummies site, and you can access it without purchasing the book. Here’s what’s covered in the cheat sheet:

Essential Excel Functions for Building Financial Models

Financial modelling is ALL about the functions! Basically, the whole point of building a financial model is so that when the inputs change, the outputs change as well – so a good financial modeller will know lots of lots of functions.  Check out my list of favourite Excel functions.

What to Look for when Checking or Auditing a Financial Model

In a perfect world, we get to build our own financial models from scratch, but in my experience, that rarely happens!  We usually are charged with the task of taking apart other peoples’ models, checking, verifying and making sure they are correct before taking them on as our own.  When you inherit someone else’s financial model, you want to make sure that you’re not inheriting their mistakes as well. Use my checklist of things to look for when inherit a financial model.

Keyboard Shortcuts for Financial Modellers

If you’re spending a lot of time using Excel for the purpose of financial modelling, you’ll find that it’s much faster, more accurate, not to mention better ergonomically to use the keyboard instead of the mouse.  Keyboard shortcuts will save you a lot of time (and wrist strain) during the model building process.  I’ve created a list of what are, in my opinion, the shortcuts that are most useful for financial modellers.

Access the cheat sheet here.