Financial Modeling is the process of creating a summary of a company's expenses and earnings in the form of a spreadsheet that can be used to calculate the impact of a future event or decision.Financial modeling allows one to determine which items in the budget must stay within certain costs, as well as which items may be substituted with items of lesser importance.
In this way, financial modeling forces companies to analyze their costs and profits against other possible scenarios. It is common practice for companies to prepare financial models as they plan their budgets, so they know what decisions need to be made or have already been made in order to hit their benchmarks.Financial modeling is a technique that allows one to predict what might happen in the future. It is used by companies and individuals to determine how much money they will have at any given point in time, as well as what their expenses will be and how those expenses will affect their profits.Financial modeling is a technique that allows one to predict what might happen in the future. It is used by companies and individuals to determine how much money they will have at any given point in time, as well as what their expenses will be and how those expenses will affect their profits. Companies use financial models to make decisions about everything from where to put new stores or offices, to which products should be introduced, and whether or not it would make sense for them to buy another company.
