Corporate Financial Modelling: Setting up Financial Models

by Alastair Day
access120 days access
cpd hours4 CPD hours

This course will enable you to:

  • Establish the ground rules for building a spreadsheet model, including guiding principles and the core elements
  • Build a model including input data, intermediate calculation and output data
  • Put together an executive summary of your model along with any appendices necessary
  • Use a range of different techniques to assess the impact of potential changes in inputs or variables

Financial modelling is essential to any business. You may need to build models for financial analysis, loan sizing, debt restructuring, valuation the list is endless. Even though financial models are an integral part of business, many models fail due to a lack of planning and poor structure.

This course provides an introduction to applied financial modelling and shows you how to design, develop and build corporate financial models. In particular, it demonstrates the benefits of solid model planning and design, and how to build models in accordance with international best practice.

Modelling and model planning

  • What is a financial model?
  • What is a spreadsheet?
  • What are your outputs?
  • What are your standards?
  • What are your individual components?
  • What are the user requirements?
  • Why is it important to plan?
  • What can happen if you don't plan?

Model Errors

  • Why is it important to check for errors?
  • How are errors made?
  • What are input errors?
  • What are calculation errors?
  • What are output errors?
  • How do you test for errors?
  • How do you test for inconsistencies?

Model templates

  • How do you set up a template?
  • How do you define a new style?
  • How do you create a custom format?
  • How do you set up data validation?
  • How do you name cells and ranges?
  • What are the advantages and disadvantages of named cells?
  • How do you input notes?
  • How do you set up a timeline?
  • How do you use masks?
  • How should you label sheets?

Excel shortcuts

  • Why use shortcut keys?
  • What function keys can you use?
  • What letters can you use?
  • What number shortcuts can you use?
  • Why use operators?
  • What do alternative keys do?
  • What about Apple shortcuts?

Entering data

  • What are the outputs of the case?
  • What are the individual components of the model?
  • Where can you find the necessary accounts information?
  • What does the income statement look like?
  • What does the balance sheet look like?
  • How do you use charts?
  • How do you use line numbers?

Alastair has worked in the finance industry for more than thirty years and has extensive experience of financial modelling, finance and leasing. Alastair was previously a director of a start-up structured finance company, which grew rapidly and was subsequently sold to a public company.

Later, Alastair established Systematic Finance as an independent consultancy to concentrate on assignments in structured finance, leasing and financial model development.

Past projects have included investment analysis, debt restructuring, valuation, aircraft leasing, power and project finance models prepared for a variety of clients. In addition, Alastair designs and delivers courses covering financial modelling, credit analysis and equipment leasing.

He is the author of standard modelling textbooks such as Mastering Financial Modelling, Mastering Risk Modelling, Mastering Cash Flow and Valuation Modelling and Mastering Financial Mathematics in Excel, together with a number of technical leasing and credit books.

Alastair has a degree in German and Economics from London University and an MBA. He has held positions as an associate lecturer at the OUBS and the ifs University College (Chartered Institute of Bankers).

ACCA logo

ACCA partner with to provide high quality CPD for members. As an ACCA member, you are required to complete at least 40 relevant units of CPD each year, where one unit is equal to one hour. 21 units must be verifiable; the other 19 can be non-verifiable.

Verifiable CPD
Your course counts as verifiable CPD, if you can answer "yes" to these questions:

  1. Was the learning activity relevant to your career?
  2. Can you explain how you will apply the learning in the workplace?

You select courses that meet these criteria, and as you complete each course you get a CPD certificate so you can provide ACCA with the evidence that you undertook the learning activity.