5 Tips for a Better Cash Flow Model

How can you ensure the quality of your financial models? Without a doubt you know the problem: For almost every transaction, the existing cash flow model has to be adjusted to individual requirements. In the best case, the responsible financial experts are available and can adjust the model. It is, however, also quite possible that they are not available straight away or that they have left the company, making adjustments much more complex. Add to this that missing quality checks can mean that mistakes easily remain undetected and are carried along into subsequent projects. Furthermore, a comparison of various investment objects becomes difficult due to the continuous adjustments to the financial model.

A certain amount of uncertainty remains: Are the returns you calculated two years ago still comparable to the current results? Do the adjustments have unintentional side effects or has a formula error crept in somewhere? Often, such mistakes are subtle and are discovered too late or not at all. In the worst case, model mistakes lead to wrong investment decisions with substantial financial consequences.

How can the quality of your financial models be increased?

Continue to read here: https://www.greenmatch.ch/en/academy/blog/five-tips-for-a-better-cash-flow-model