A companion to the Financial Modeling, Planning & Analysis Toolkit and the FP&A Planning & Reporting Templates Pack. It teaches how to structure a three-statement model for a small or mid-sized business, build revenue and cost drivers, plan headcount and capital spend, produce an annual budget and rolling forecast, analyze variances, and present financial results to owners and lenders. Financial education for operators, not accounting or tax advice; validate any model used for decisions with your accountant or advisor.

Modules

Model Architecture

Lessons

• Inputs Engine Outputs Preview
• Time Periods and Model Horizon
• Documentation and Version Control

Revenue and Cost Drivers

Lessons

• Revenue From Volume and Price
• Cost of Sales and Gross Margin
• Operating Expenses by Behavior

Headcount Capital and Working Capital

Lessons

• The Headcount Plan
• Capital Expenditure and Depreciation
• Working Capital and Cash Timing

The Three Statements Together

Lessons

• The Income Statement Tab
• The Balance Sheet Tab
• The Cash Flow Statement Tab

Budgeting and Rolling Forecasts

Lessons

• Building the Annual Budget
• Rolling Forecasts
• Scenarios and Sensitivities

Variance Analysis and Reporting

Lessons

• Monthly Close and Variance Calculation
• Explaining Variances by Driver
• Presenting Financial Results