The top 10 most common financial modeling problems are: (1) the balance sheet doesn’t balance, (2) there are circular references when there shouldn’t be, (3) there are assumptions/drivers that don’t impact anything in the model, (4) there are multiple places to input the same assumptions, (5) there are #REF errors in the model, (6) the cash balance becomes negative, (7) positive and negative signs are mixed up, (8) time periods are wrong, (9) the modeling doesn’t have realistic assumptions, and (10) hardcodes and formulas are not properly color coded.
CFI is the official global provider of financial modeling and valuation analyst FMVA Designation. CFI's mission is to help anyone become a world-class financial analyst and has a wide range of resources to help you along the way. In order to become a great financial analyst, below are some additional questions and answers for you to explore further:
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