Are dead inputs and hardcoded values sneaking into your financial models?
Dead inputs and hardcoded values can ruin a model. In this video, Ian Schnoor, FMI’s Executive Director, explains why it is essential to check your financial model for dead inputs and hard coded values.
Learn how to:
- Identify and remove unused or dead inputs.
- Avoid hardcoding values to maintain flexibility.
- Build models that are reliable, adaptable, and easy to update.
Small details make a big difference in financial modeling. Watch now to refine your skills and ensure your models are error-free.
Transcript (Edited for Clarity)
When I audit a model, the next thing I look for is dead inputs, meaning hard coded numbers where there should be formulas. It is very common for someone who is experimenting or testing to overwrite a formula by typing a raw value into a cell. Here is what that looks like.
On the Revenue Schedule, Gross Sales Price links from a prior sheet, Cost Inflation links the same way, Freight and Warehousing is calculated as prior year multiplied by one plus Cost Inflation, and Net Sales Price is Gross minus Freight. Everything flows cleanly across the years. Now imagine your boss asks, “What happens if the Net Sales Price in 2027 is 750 instead of 718.9?” Many people in a hurry will click the 2027 Net Sales Price cell and type 750. That instantly replaces the formula with a dead number. From that point on, no one knows why that number is there or where it should have come from.
To catch these overrides quickly, use Excel’s Go To Special:
Press F5 to open Go To.
Click Special.
Choose Constants and click OK.
Excel will highlight every cell on the sheet that contains a hard coded value. It is fine to see constants in historical data or in labels, but any highlighted values in forecast periods should raise a red flag. This reveals exactly where a formula was overwritten by a manual entry without having to inspect cells one by one.
When I review someone else’s spreadsheet, step one is always to look for dead inputs. Press F5, choose Special, select Constants, and you will surface every hard code in seconds. It is an indispensable speed check for any financial model.
