Earlier this year, I asked members of the Financial Modelling Group for their best tips for reducing financial model file size and got some fantastic tips. I’ve edited my original list of personal favourites to include some of the best tips and tricks and credited the authors below:
Written by Danielle Stein Fairhurst and Lance Rubin
This article first appeared as part of the Financial Modelling Knowledge Hub
It’s never been more important to have a well built, flexible and robust financial model to use to predict outcomes and it’s at times like these a financial model really proves its worth. With a global pandemic unfolding and the situation changing daily, having a model that can you can quickly and easily update as the situation requires, is going to make it so much easier to make the quick decisions that are going to be necessary in the coming weeks or months.
Model design and structure can be one of the most difficult parts of building a financial model. Typically, modellers will work from back to front when building their model. The output, or the part they want the viewer or user to see, will be at the front, calculations will go in the middle, and source data and assumptions should go at the back. The image below shows an example of what your tabs in a well-structured model might look like.
