Overview
CK Finance and Advisory Services can prepare detailed three-way financial models (Profit and Loss, Balance Sheet and Cashflow Forecast) to assist management making informed decisions about your business. Management’s ability to make effective strategic decisions is largely dependent on the quality of information it has at its disposal. A financial model is capable of estimating the forecast financial performance of a business and represents a useful tool to assist management in making these decisions.
The process involved in creating a financial model involves breaking down the financial and operational metrics of a business into a set of assumptions. These assumptions represent the inputs to the model which are processed to produce an output. The output generally takes the form of a three-way financial report that takes the form of a Profit and Loss, Balance Sheet and Cashflow Forecast which mirrors your accounting Chart of Accounts to meet the information requirements of the intended user.
Financial models can be used for a number of purposes, including:
Analysis of the financial impact of strategic decisions
Assessment of investment opportunities
Assessment of working capital management/requirements
Assessment of capital structure requirements
Sensitivity analysis for stress testing the business
Submission of forecast financial information to
regulatory authorities or financiers
Actual v Budget monthly and year to date to create financial
and business accountability, facilitating a high performance
business environment