The Basics of Financial Modeling

1. Front Matter

   Pages i-xiv

   PDF

2. Financial Modeling: An Overview

   • Jack Avon

   Pages 1-9

3. Financial Modeling Best Practices

   • Jack Avon

   Pages 11-49

4. Modeling Functions and Tools

   • Jack Avon

   Pages 51-113

5. Planning Your Model

   • Jack Avon

   Pages 115-129

6. Testing and Documenting Your Model

   • Jack Avon

   Pages 131-146

7. Designing and Building Your Model

   • Jack Avon

   Pages 147-180

8. Financial-Based Calculations

   • Jack Avon

   Pages 181-207

9. Logical-and Structural-Based Calculations

   • Jack Avon

   Pages 209-224

10. Keyboard Shortcuts

    • Jack Avon

    Pages 225-226

11. Back Matter

    Pages 227-231

    PDF

Learn to create and understand financial models that assess the value of your company, the projects it undertakes, and its future earnings/profit projections. Follow this step-by-step guide organized in a quick-read format to build an accurate and effective financial model from the ground up.

In this short book, The Basics of Financial Modeling—an abridgment of the Handbook of Financial Modeling—author Jack Avon equips business professionals who are familiar with financial statements and accounting reports to become truly proficient. Based on the author's extensive experience building models in business and finance, and teaching others to do the same, this book takes you through the financial modeling process, starting with a general overview of the history and evolution of financial modeling. It then moves on to more technical topics, such as the principles of financial modeling and the proper way to approach a financial modeling assignment, before covering key application areas for modeling in Microsoft Excel.

What You'll Learn

• Understand the accounting and finance concepts that underpin working financial models
• Approach financial issues and solutions from a modeler's perspective
• Think about end users when developing a financial model
• Plan, design, and build a financial model

Who This Book Is For

Beginning to intermediate modelers who wish to expand and enhance their knowledge of using Excel to build and analyze financial models

Jack Avon is the principal consultant at Isys Systems, an international provider of financial modeling and analysis services. He specializes in integrating in-house ERP systems and bespoke financial models, automated dashboards, and automated reporting packages using Microsoft Access, Excel, VBA, SQL Server, and SQL. He trains corporate personnel and develops training manuals in financial data analysis and financial reporting. Clients include British Telecom, Huawei, HSBC, Crossrail, Fujitsu, and the UK Electoral Commission. Avon is the author of The Handbook of Financial Modeling and The Basics of Financial Modeling. He holds his MBA in Information Technology and BS from Bournemouth University and his MS from the University of London.

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