Financial Modeling

Financial modeling is the task of building an abstract representation (a model) of a real world financial situation. Our approach to financial modeling, is to make the component modular, and create integration among the components. We had experiences in many industries (manufacturing, food beverage, energy utilities, etc) , and subject areas (ex. tax planning, cash flow planning, product profitability) with various clients within Indonesia, integrated to their ERP systems including SAP and Oracle.

Features:

Integrated

Our integration cover not only connection among components (ex. sales, opex, capex, financial statements) but also with external data sources (ERP, custom applications)

Scalable

A good financial model should allow last minute changes (ex. new products, transferred business units) without significant project delays.

Driver Based

Important assumptions (ex. Exchange rate, UMR, fuel price) to calculate the financial model should be used in the model to allow what If simulation.

Recommended Steps:

  1. Before picking the expensive tools, start with spreadsheet (Excel/Google Sheet) first.
  2. Analyze the model backwards, from Reporting to Assumptions. Involve key users in gathering model requirements
  3. Mark big ticket items, pay special attention to controllable ones
  4. Don’t collect too many data. Consider your company growing stages in collecting data
  5. Analyze key business drivers in creating suitable assumptions
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