Financial modelling is a process of forecasting performance of business and assets, using relationships among a range of variables. The central aim of all financial modelling is decision making or valuation under uncertain conditions, which provides management with leading insights into the short term or even long term business environment.
What is a financial model?
A financial model is a financial representation that aims to:
How do financial models aid business decision making?
Financial models differentiate themselves from other business management tools as they are predictive in nature, allowing for proactive decision making, rather than reacting to events that have already occurred.
In an environment of increasing corporate governance requirements, financial models also assist with monitoring compliance with debt covenants and existing financial reporting.
“Whether a given situation involves evaluating a new business venture; proposed acquisition or transaction; or implementing financial and operational strategies, a robust and dynamic financial model is an integral component to the decision-making process.”
Grant Thornton also offers the following financial modelling services:
To find out more on any of the above, or for further information, please contact your local Grant Thornton office: