Dynamic Business Modeling
In FP&A, business models that are dynamic, able to change quickly, and update for new data are a must. In this module, you’ll learn how to set up dynamic models in Excel.
- Dynamic data sets, dynamic data tables, dynamic offset ranges, and dynamic arrays
- Dynamic pivot tables and charts with slicers
- Dynamic indirect data referencing
Scenarios and Sensitivities
FP&A professionals may not be able to model the future with perfection but can model effectively through forecast scenarios. Learn best practices for scenario planning and managing sensitivities to help improve your forecast accuracy.
- Sum of worksheets approach to scenario management
- Multi-dimensional modeling and scenario management
- Employing multi-dimensional sensitivity analysis for variable inputs and drivers
- Overlaying conditional formatting
Getting Answers Without Modeling
Modeling isn’t always an option and, in this module, you’ll learn ways to come to decisions outside of Excel or using foundational tools available within the software.
- Conduct ‘what-if’ operational simulations to minimize risk
- Utilize goal-seek techniques to determine pricing and target profitability
- Identify and address resource constraints using the solver technique
- Address break-even, profit optimization, and product mix decisions
Financial and Business Modeling Best Practices
Take your modeling to the next level by learning the best practices needed to be an effective business modeler.
- Best practices around structural design and management of financial models
- Using font colors and model hygiene to minimize confusion and distraction
- Identify the trade-offs between a) granular vs. big picture analysis, and b) static vs. dynamic functionality
- Common methods and mistakes around organizing model inputs, drivers, assumptions, and outputs
- Consistent model architecture and hygiene for ease of understanding and use across multiple users
- Utilization of formula evaluator and watch window to simplify models, save time, and reduce mistakes
- Best practices for working with data stored in external databases and approaches for data imports
Forecasting, Projecting, and Budgeting
FP&A plays a vital role in forecasting, projecting, and budgeting. This module helps teach the foundations and more enhanced applications of each.
- Misconceptions and benefits of forecasting, projecting, and budgeting
- Key terms, definitions, and trends
- Forecasting methods, top-down versus bottom-up approaches, and techniques for improving forecast accuracy
- How risk, uncertainty, and probability affect the building and management of forecasts, projections, and budgets
Strategic Financial Planning and Analysis
FP&A serves as a critical partner in the development and execution of strategic financial planning. This module reviews the critical-thinking skills and applications necessary to be a successful strategic FP&A professional.
- Assessment of the macroeconomic and industry environment
- Revenue and cost analysis by channel or business segment
- Peer review of similar or competitive entities
- Liquidity and working capital management including cash conversion cycle optimization
- Gap analysis
- Debt sizing
- Integrated venture forecast modeling
Implementing Cash Flow Management and Scenario Planning
Cash is king and knowing the sources and uses of cash is key to successful growth, turnaround, or revitalization. Learn how to forecast, monitor plan, and explain your future cash flows.
- Reforecasting sales reduction and growth opportunities at different levels of granularity and significance
- Identifying what level of revenue and EBITDA is needed to fund cash outflows
- Evaluating costs as fixed and variable, controllable and non-controllable, vendors as critical and non-critical, and what can be done to mitigate exposure
- Calculating what level of day’s sales outstanding (DSO) and days payable outstanding (DPO) achieve a reasonable level of working capital and renegotiating collection and payment terms accordingly
- Assessing what level of days inventory outstanding (DIO) achieves a reasonable level of stock and working capital and identifying related solutions
- Measuring the impact of reorganization on cash flow
- Quantify financing needs