Financial Model

Financial Model

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I hereby certify that I am the author of this document and that any assistance I received in its preparation is fully acknowledged and disclosed in the document . I have also cited all sources from which I obtained data , ideas , or words that are copied directly or paraphrased in the document . Sources are properly credited according to accepted standards for professional publications . I also certify that this paper was prepared by me for this purpose

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Introduction

Financial

planning is vital for all businesses regardless of their nature , industry of operation or size . Ogilvie (2005 ) noted that preparation of corporate financial plans forms a significant part of the corporate planning process . Swan (2005 ) advises simple business operations that might lack the financial expertise to use financial models to generate their financial plans . Financial models provide a template that guide persons with limited financial knowledge in generating financial plans including preparation of projected financial statements such as a projected statement of cash flows , income statement and balance sheet . This research evaluates the role of financial modeling as a planning tool , importance of the assumption sheet included in financial models , and the value of industry standards and other benchmarks in planning

The role of financial modeling as a planning tool

Financial models are representations of financial decisions and financial plans (Ogilvie , 2005 . They are usually prepared using basic computer programs such as Microsoft Excel software . Preparation of these models involves plans for...