Course Description

This course provides an in-depth exploration of operational financial modeling, focusing on building accurate, structured, and reliable financial models. Participants will learn how to develop key financial schedules, analyze business operations, and ensure the integrity of their models. The course covers critical areas such as revenue and cost forecasting, working capital management, asset depreciation, income tax calculations, and model review techniques. The program is designed to help professionals enhance their decision-making by understanding what truly drives business performance.

Target Audience

This course is ideal for:

• Financial analysts and accountants looking to improve their modeling skills.
• Corporate finance professionals responsible for budgeting and forecasting.
• Entrepreneurs and business managers aiming to build financial models for strategic planning.
• Investment professionals and consultants who evaluate business performance.
• Students and professionals preparing for careers in financial analysis and modeling.

Course Structure

The course is structured into 10 key modules that follow a practical, hands-on approach:

1. Financial Modeling Overview

   • Introduction to financial modeling principles and best practices.
   • Understanding the role of operational modeling in financial analysis.

2. Revenue Schedule

   • Forecasting revenue streams using price and volume analysis.
   • Identifying growth trends and business drivers.

3. Cost Schedule

   • Differentiating between fixed and variable costs.
   • Building structured cost schedules to forecast profitability.

4. Income Statement

   • Linking revenue and cost schedules to construct an income statement.
   • Applying accrual accounting and matching principles.

5. Depreciation Schedule

   • Modeling depreciation for existing and new assets.
   • Understanding tax vs. accounting depreciation.

6. Asset Schedule

   • Tracking capital expenditures and asset values.
   • Differentiating between accounting basis and tax basis.

7. Income Tax Schedule

   • Calculating taxable income and total tax expense.
   • Understanding tax loss carryforwards and deferred taxes.

8. Working Capital Schedule

   • Managing accounts receivable, accounts payable, and inventory.
   • Evaluating cash flow impact of working capital changes.

9. Model Review & Integrity

   • Techniques for auditing financial models for accuracy.
   • Using Excel tools and shortcuts for efficient model checking.

Duration: Self-paced option: 4 weeks.

Course Objectives

By the end of this course, participants will be able to:
✔ Develop structured and reliable financial models that reflect business operations.
✔ Analyze and segment a company’s operations into financial schedules.
✔ Calculate key financial outputs for decision-making and forecasting.
✔ Ensure accuracy and consistency across financial model components.
✔ Build and maintain a library of financial schedules for future use.

This course is designed for professionals who want to enhance their financial modeling expertise and apply operational modeling techniques in real-world business scenarios. ????