Outline
Session 1: Foundations of Financial Modelling
- What financial modelling really is?
- Common modelling mistakes accountants make
- The financial modelling process:
- Planning
- Documentation
- Designing
- Testing
- Finalisation
- Best-practice model structure & discipline
Session 2: Core Financial Models Accountants Must Master
Illustration I
Projected Financial Statements
- P&L and Balance Sheet projections
- Balance Sheet balancing logic
- Key assumptions & linkages
Illustration II
Proforma P&L (Metric-Driven Modelling)
- Modelling to achieve margin, profit, or ROE targets
- Use of advanced Excel (Scenario Manager function)
- Application of Gen AI
Illustration III
Budgeted P&L (Shortfall Recovery)
- Identifying performance gaps
- Revenue and GP recovery
- Management action modelling
Session 3: Cash, Operations & Performance Models
Illustration IV
Projected Cash Budget (Retail Store Performance)
- Cash inflows vs outflows
- Liquidity stress points
- Working capital impact
Illustration V
Sales Force Planning Model
- Headcount productivity
- Revenue per salesperson
- Cost-to-serve analysis
Session 4: Strategic & Advanced Applications
Illustration VI
Turning Around a Company in Decline
- Declining revenue scenarios
- Cost restructuring impact
- Cash survival modelling
- Use of Linear Regression Model (LRM) to forecast sales
- Application of Gen AI on LRM
Illustration VII
Business Valuation Financial Model (BVFM)
- Applying the DCF approach to Biz Valuation
- Parameters (Explicit 5-yr forecast, Terminal Value, Discount rate/WACC, Gordan Model) and assumptions
- Use of advanced Excel (Scenario Manager, Validation)
Illustration VIII
Financial Modelling for M&A
- Objectives to achieve (Revenue forecast, EBIT/Sales, PAT/sales)
- Organic and non-organic growth assumptions.
- Number of acquisitions to achieve objectives
- Extent of funding requirements.
Illustration IX
Launching a New Product
- Process of launching new product
- Capex requirements, product pricing, expected volume of sales, A&P spend, funding requirements, staff costs
- 6-month launch forecast P&L
- Financial & funding requirements
- How to monitor the success of the launch and the new product.
