Best Practices

Good formatting is what transforms a spreadsheet into a decision-making tool. This post outlines key principles for financial model formatting: structural conventions, cell referencing, conditional formatting, headers and footers, and print optimization. Together, these practices ensure your model communicates clearly on screen, in print, and in review.

Discover why financial modeling is indispensable for every strategic decision, from valuing acquisitions and assessing credit risk to planning budgets and stress-testing scenarios. This post explains how turning raw data into structured models delivers critical outputs such as NPVs and sensitivity analyses, and why weaving those numbers into a clear, concise narrative is just as important. By guiding stakeholders through the what, why, and how of each recommendation, a well-crafted model not only informs but also inspires confidence and drives action.

In this webinar, Ian Schnoor, FMI’s Executive Director, will explore the key components of building a strong financial model. The session will cover topics such as optimizing model flow, managing assumptions effectively, creating a scenarios page, important modeling ideas, and practical tips to enhance your skills.

Lay the groundwork for a robust financial model with a clear planning framework: review historicals, map out assumptions and schedules, structure formulas for transparency, and tackle nine critical questions to align scope, design, and outputs with decision-making needs.

Misconceptions, inconsistent practices, and overlooked details often weaken a financial model. Understanding what to avoid and what to do instead can make a major difference. These tips cover common modeling myths, key dos and don’ts, and simple ways to build stronger, more transparent models.

Advance your financial modeling in Excel with five concise video lessons from Ian Schnoor, CFM. You’ll learn to automate text so your narrative updates as assumptions change, simplify and modularize formulas for easier auditing, eliminate hard-coded values by centralizing inputs, navigate large workbooks with efficiency, and jump directly into any precedent cell to inspect calculations with a single click. Apply these techniques to streamline workflows, reduce errors, and build models that communicate insights clearly and adapt seamlessly to new scenarios.

Circular references are amongst the most contentious issues in the world of financial modeling. Views on the appropriateness of circularity vary by region, by sector and by company, so be sure to utilize the approach in the organization where you work.

Join Ian Schnoor CFA, CFM, Executive Director of FMI for the Checking and Reviewing a Financial Model on-demand webinar where he will cover skills to check a financial model and the process and methodology to review a model.

When it comes to financial modeling, there are two main approaches to tab structure: vertical and horizontal. Some professionals also use a hybrid of the two. Ultimately, the choice of structure depends on the specific needs of the model and the preferences of the financial professional. Regardless of the approach selected, it’s important to apply best practices and follow a clear tab structure to ensure an effective and efficient modeling process.

In this video Ian Schnoor, FMI’s Executive Director, explores how to customize number formatting in Excel, helping you present financial data clearly and efficiently. These techniques will streamline your workflow and improve data presentation. Watch now for practical Excel formatting tips that enhance your financial models.