Financial Modelling Best Practice

Overview

What you will learn

By the end of this Financial Modelling Best Practice course offered by University of Sydney , you should be able to:

• explain why professionals need to build financial models

• explain why most financial models are constructed using Microsoft Excel

• explain where to begin when designing and constructing a financial model

• articulate the questions that should be asked when scoping a financial model

• follow the best practices when constructing financial models

• use styles to ensure consistent and disciplined formatting is used in financial models

• create flags to ensure that logic can be consistently copied across a timeline

• create punch-through calculations when modelling repeating structures

• incorporate error checks into financial models

• use range names to improve the transparency and usability of financial models.

• use the best file type for any financial modelling situation

• follow a file naming taxonomy that minimises the risk of losing work when constructing models

• avoid the worst practices when constructing financial models

• assess whether a financial model that has been presented to them should be relied upon

• methodically find errors that exist in financial models (particularly those built by others).