Fundamentals of 3 Statement Modelling

Master the fundamentals of building a 3-statement financial model with expert insights from Lance, author of the CA (ANZ) study guide on financial modelling!

Financial Modelling has got to be still one of the topmost sought after skills for accounting and finance professionals today given the significant uncertainty in business trading conditions and focus on cash flow. Banks also require it for larger limits and funding sources for clients.

The session will cover an overview of the best practice principles and some technical content published in the CA (ANZ) study guide on financial modelling. 

The session will very briefly cover some of the practical steps you should take when building any model using principles and standards that are universally accepted as best practice.

However, the session intends to cover in more specific granular detail the core components of 3 Statement modelling. This includes a very easy simple example to start off with revenue and debtors so that the concepts can be understood in terms of building corkscrew logic for balance sheets and error checks.

The important thing is seeing how to build in the safe-guards in an Excel 3-way model from the start. We will build some really simple logic blocks with just “old” Excel formulas (no Dynamic Arrays or LAMBDAs).

We will however show and demonstrate what a 3-way model looks like with the latest Modern formulas and functions, but participants will not be expected to follow. Refer to prior sessions on modern Excel and potential future webinars on these enhancements.

Learning Outcomes:

Attendees will cover the following topics specifically:

• Overview of the foundations of best practice and design concepts at a very high level before diving in.
• Participants will get hands on building experience for a simple Revenue and Debtors logic populating an Income Statement, Balance Sheet and Cash Flow.
• A step-by-step approach to building parts of this model from scratch at a very basic level (no complex scenarios managers etc).
• Experience and see what industry scalable and best practice 3-way modelling using Modern Excel functions and formulas.

Suited to:

This is suitable for anyone looking to get started in developing their skills in financial modelling as well as those that have dabbled in financial modelling over several years and are looking to hone and sharpen their skills along with benchmarking themselves against leading best practice.

The wonderful thing with financial modelling is that it is applicable to all sectors and companies of all sizes. Once mastered, it can also be easily transferred into business modelling and really helping clients make better business decisions.

Whether it’s a start-up, SME, large corporate and global multinational the concepts and design principles are the same. All financial models come back to one critical element and that’s cash flow. No matter what business you are in, cash is king and remains the single most critical resource in any company. 

However irrespective of the size of company tracking, modelling and stress testing scenarios relating to cash flow can be complex given the many different drivers that impact it.

As data becomes more available and new accountants are wanting to become more data literate. Financial modelling is a great starting group to develop these literacy skills in data. Accounting and finance professional with strong financial modelling skills will continue to be highly sought after. Outsourced CFOs and will add significant value by influencing the board on a range of strategic options using financial models. 

This On Demand Includes: 

• Recording of the Live Webinar, which can be viewed multiple times
• PowerPoint Presentation
• Verbatim Transcript, with Searchability
• Supporting Documentation
• CPD Quiz
• CPD Certificate