About this lesson
How to construct the Financial Statements in basic financial modeling.
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Constructing Basic Financial Model
Understand how to construct basic Financial Modeling.
When to use
When constructing a basic Financial Model.
Constructing the Financial Statements
- Very simple process
- Repeat for second smallest financial statement, etc.
- Build financial statements from chart of accounts
- Ensure Opening Balance Sheet balances
- Put in (sub) totals
- Incorporate links between the statements
- Build error checks
- Start with smallest financial statement (conceptually) first and consider first line item not yet inserted into the statement:
- Complete calculations if necessary
- Build control account
- Place control account entries into the financial statements
- Make sure it balances
- Next line item
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