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Ten Practical Tips for Using Excel VBA Macros in Financial Models

Ten Practical Tips for Using Excel VBA Macros in Financial Modeling

At the most basic level, the Excel macro function is used to automate repetitive and commonly executed Excel computations or tasks by recording keystrokes and functions. Many financial analysts have also found that taking the effort to study the effective use of Excel macros and Visual Basic for Applications (VBA) helps them to fully utilize […]

Financial Modeling Discipline – Use Built in Spreadsheet Tools to Check for Errors

Financial Modeling Discipline - Use Built in Spreadsheet Tools to Check for Errors

A good financial analyst will always use the built-in spreadsheet auditing & testing tools of Microsoft Excel that allow checking for errors in cell logic (and macro logic, if Excel VBA macros are used) in the financial model. Doing so on a regular basis is good financial modeling discipline and good spreadsheet risk management practice, ensuring error […]

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Financial Modeling Discipline – Consistent Scales, Units and Labels

Financial Modeling Discipline - Consistent Scales, Units and Labels

A good financial analyst gets the time scales and units right, and labels clearly and consistently throughout the financial model. Such good practice will help eliminate human errors in a financial modeling exercise, and ensure that results are robust and accurate. Be explicit about assumptions related to inflation indices and percent changes in your financial […]

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Financial Modeling Discipline – Keep Columns and Rows Consistent

Financial Modeling Discipline - Keep Columns and Rows Consistent

A good financial analyst will use each column and row for only one type of information, and will always cluster numbers to be added in a financial modeling exercise. Preserving each column and row for a specific type and value helps you in … Using named ranges – e.g. if a row is named “sales”, […]

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Basic Accounting Principles

Basic Accounting Principles

In order to manage a business effectively from the financial perspective, it is always important to measure: (1) how many assets there are; (2) how much profit is being generated; (3) when the cash is coming in, and (4) how it is being spent. Accounting is nothing more than the measurement of these processes to […]

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