The top 10 financial modeling rules are: (1) format inputs in blue and formulas in black, (2) simplify the model as much as you can, (3) don’t hardcode numbers into formulas, (4) use grouping instead if hiding cells, (5) break down complex formulas into multiple steps, (6) run error checks, (7) stress test the model, (8) use comments in cells, (9) run scenario and sensitivity analysis, and (10) use charts and graphs to summarize information.
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:
Below is a screenshot from one of CFI’s online analyst training and certification courses, offered 100% online.
To learn How to Build an Excel Model step-by-step, click on the image below.