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Financial modeling refers to the development of abstract models or representations of financial situations. These are mathematical models designed to represent performance of financial assets, investments or projects. In businesses, financial modeling is done using Microsoft Excel to forecast the business’ financial performance into the future. The inputs used for financial modeling are historical performance, assumptions about the future, income statement and balance sheet. Using this data, advanced models are built and the data is analyzed to see how it fits with the proposed model. The results of financial modeling are used for financial analysis and decision making processes in a company. If you wish to develop and study financial models for your company, you can hire for financial modeling services from top freelancing sites like Guru.

What Do Financial Modeling Service Providers Do?

People who perform financial modeling start by obtaining the past three years of the company’s financial statements. They make assumptions for the historical period by calculating revenue growth rate, gross margins, fixed and variable costs, and inventory days. Using this data, the assumptions for the forecast period are calculated and noted as hard codes. Once this is done, they prepare the income statement, balance sheet, supporting schedules and cash flow statement. After this stage, the financial models are prepared based on specific requirements. Financial modeling service providers carry  a DCF analysis followed by a sensitivity analysis of the financial data. They collaborate with people who perform financial analysis to convert this data into charts and graphs that can easily be understood by the company’s decision makers. Finally, they perform stress-testing of extreme test cases to see if the model behaves as expected.

If you wish to hire for financial modeling services for your business, you can connect with experts offering their online freelance services. Before you do so, you need to ensure that the person:

  • Possesses in-depth knowledge of Microsoft Excel, with expert skills in creating charts, macros, formulas and VBAs

  • Has a basic understanding of accounting concepts and investment appraisal techniques such as NPV and IRR

  • Can solve financial problems for a business by creating accurate financial models

Qualifications of Financial Modeling Service Providers

People who provide financial modeling services can help you analyze previous financial data of your company and forecast future growth. Here are some of the qualifications you should consider before you hire a freelancer:

  • Professional education and training in Business Finance, Accounting, Economics, Financial Modeling, and Financial Analysis

  • Ability to perform valuation of companies, capital structure analysis, and comparable company analysis

  • Extensive portfolio of several simple and advanced financial models developed for various clients

Benefits of Freelance Financial Modeling Services

  • They can help you assess financial risk by conducting scenario analysis using micro and macro factors.

  • They recommend and implement processes for improving the budget and future growth of the company.

  • They identify key financial and non-financial risks, and recommend actions for mitigation of these risks.

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