Here is a list of top financial modeling tips: (1) always keep the model as simple as possible, (2) separate assumptions or inputs from calculations or formulas, (3) avoid adding any hardcodes within a formula, (4) avoid excessively completed formulas, (5) clearly label assumptions and formulas with color coding, (6) create your own error checks, (7) perform sensitivity and scenario analysis, (8) create charts, graphs, and tables to display the results, (9) stress-test and sense-check the model, and (10) summarize your analysis in a presentation.
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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