Glossary.

To make sure we're on the same page. Here is a glossary of some useful financial modelling and other terms. They have been used all around the site. 

Types of Financial Modelling

Financial modelling can be broadly categorised into 3 types. Each of these have popular use cases. 

Planning

Annual Budgets

Forecasting

Revenue and Expense Projections

Inventory Planning

Analysis

Statistical Analysis of Data

Product/Customer Profitability

Probability Simulations

Machine Learning Algorithms

Reporting

Data Visualisation

Performance Dashboards

Automate Reporting Processes


The Software

When you're building financial models, you should look at the entire process the model falls into and use all the tools available to you. Not only in Excel. The idea is to use all the tools that are easily available to you.

EXCEL

Excel is the de facto king of financial model building. This has been the case for decades. It is probably the most widely used application in the world. It's popularity is founded on its ease of use for users of all levels.

VBA

Used to automate processes. Make them faster, more accurate and efficient. VBA works on the main MS Office programs and can be used like a "glue" to connect them all together.

MS Access

To go from single user Excel solutions to multiple users. MS Access lets you build more data intensive projects with proper relational database functionality that is already included in in the MS Office suite of programs..

Python

To scale up your data analysis. Python offers libraries that let you run statistical analysis and machine learning algorithms to your data. You can also build complete data products from extraction, analysis and reporting.


Other Terms and Concepts

Simulation

Procedure that relies on random numbers to model real world outcomes. It can be used to estimate probabilities of complex real world events. 


Get in touch for a chat

 - Send us a message if your business needs any sort of financial modelling.
 - You could know what you want or could be looking for options.
 - Either way a chat with us would definitely help you on figuring out the best way to go.
 - One of our experts will be in touch with you within 24 hours, usually sooner.
 - On our call we can both get an understanding on what you need and how we can help.
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