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financial data modeling its applications uses and training n.
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  1. FINANCIAL DATA MODELING itsapplications, Uses and training.

  2. What is FinancialModelling?  Overview of financialstatements  Planning vsmodelling  The ‘what if’mind-set  The importance ofassumptions  Dealing withuncertainty  What does a financial modelcommunicate?  Market metrics such as conversionrates

  3. The FinancialStatements

  4. Planning VsModelling

  5. The “what if” mindset  The process of thinking through scenarios and asking questions on a range of well thought outassumptions  Enables validation of assumptions used for the financialmodel  Enhances understanding of the business and financialmodel  Adds flexibility to the financial model by changinginputs  Shows effects of completing set goals and milestones based on how well theywill beachieved

  6. The Importance ofAssumptions  Assumptions are the basic map for creating anymodel  The assumptions decreaseuncertainty  The financial model is as good as the assumptions used to build themodel  Assumptions are the key to achieving “buy in” from investors, partners and employees  Assumptions guide not only the financial but also business modelling &planning  Assumptions have to be well thought out, researched andtested

  7. Dealing withuncertainty  Uncertainty is the fear of theunknown  or the risk faced from variables that are not accountedfor  and those variables that cannot beevaluated  Uncertainty is reduced through assumptions, modelling andresearch  Uncertainty is reduced as assumptions add some level ofcertainty  A model that responds to range of inputs decreasesuncertainty  Uncertainty is productive as it keeps us sharp andprepared!!!!

  8. What does a FinancialModel Communicate?  It shows that you understand your business and how itworks.  It shows how your assumptions and plans will generatevalue  It allows investors to evaluate some aspects of yourbusiness  It shows how a range of inputs will impact on the outputs i.e profits andcosts  It shows how your business will likely perform over a period oftime  A good financial plan shows that you have had a reality check and are not workingon guesses and blinddevotion

  9. Importance of Marketing Metrics  Your key assumptions will be based on how your marketing willwork?  How do you plan to reach your targetmarket?  How do you plan to turn your target market intocustomers?  How much time and cost will you incur in the process of gainingcustomers?  How much value will each customer add to yourbusiness?  What are the expected range of conversion rates for marketing efforts of yourbusiness?

  10. Summary  The financial model is expressed through financialstatements.  Financial models are dynamic, assumption based and inputdriven.  Financial models are built with a “what if”mind-set.  Financial models deal with uncertainty, but do not eliminateit.  Financial models communicate information to aid decision making andplanning.  For a start up, marketing metrics drive the creation of the financialmodelling.

  11. Boost your career with financial data modeling course in Dubai by Mindcypress. UAE: 2901 57, PRIME TWR , Business Bay Dubai , Dubai 79998 U.A.E +971-52-356-0057 +971 50 263 0850 support@mindcypress.com Course page: https://www.blog.mindcypress.com/what-is-the-advantage-of-financial-modeling/