What is Financial Modeling?
“we create a financial model that is specific to each organization”
Financial modeling is the use of excel spreadsheets and mathematical formulas to analyze historical financial data in order to predict future results. A model is one way of creating a reliable plan and is also a great tool to allow a business owner to contemplate the effects of changes to different variables in the business.
At ICS, we create a financial model that is specific to each organization. We look at every detail of the finances including an analysis of every customer and their pay habits, every vendor and their terms, the payroll, and all loans to create a comprehensive tool for each business.
Financial Modeling Leads to a Plan
“Our analysts take the time to get to know each level of your organization, compiling internal data into a plan that allows you to bring your business to the next level
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A financial plan is how the company communicates its strategy and expectations for future financial results to key stakeholders like management, shareholders, and lenders. Presented by month or by year, a good plan is based on sound assumptions of sales and expenses. It should consider the company’s goals and priorities, act as a guide for decision making and provide a basis for measuring performance.
With a strong model in place, ICS will work with the business owner to create a monthly plan based on model formulas and future assumptions. This plan maps out a path to success.
13-week cash flow
“A 13-week cash flow report allows a business owner the ability to be proactive about potential cash shortages, rather than surprised and reactionary”
A 13-week cash flow is a week by week plan for cash coming into and going out of the business. They are commonly used by companies with a complicated cash cycle or a temporary cash shortage.
A 13-week cash flow report allows a business owner the ability to be proactive about potential cash shortages, rather than surprised and reactionary. Particularly when facing challenges like seasonality, extended lead times, and economic uncertainty, the more advance notice the better.
ICS starts with beginning cash balances, predicts weekly incoming cash based on A/R data, and pairs that with payroll, loan and vendor data to provide an accurate cash flow report.
The Execution
We don’t stop at a model and a plan. The ICS team also helps with the consulting to execute the plan.
Our intuitive and complete financial models will help you to:
Compare budget to actual result and adjust as necessary
Source new financing
Highlight areas where costs can be reduced to save you money.
Determine the most effective pricing for your products and services.
Discuss alternatives when cash is tight
Identify areas where increased spending and investments will be beneficial.
Measure the efficiency of all of your operational processes.
Calculate the return on investment for all operations and initiatives.
Formulate and adopt a list of key performance indicators.
It’s financial modeling that is customized to match your business needs, no matter what they are.
Plan Your Finances Today
At Integrated Consulting, your company’s future is our top priority. To find out how we can create a financial model that works for you, give a call today.