Take your financial modeling skills to the next level! In this hands-on course, you will learn to create an Income Statement, Balance Sheet, and Cash Flow Statement from scratch and prepare a comprehensive forecast model in Excel.
In this practical course, you will learn to build a 3-statement financial model in Excel. Starting from the basic accounting transactions, we show you how specific business activities affect a company‘s performance and financial statements. We will illustrate how to apply the double-entry principle of accounting and how to link the Income Statement, Balance Sheet, and Cash Flow Statement in a single comprehensive financial model. We also teach you to prepare a financial statements framework and then add a forecast period. This will enable you to add different scenarios and project a company’s financial performance under various assumptions. Moreover, you will learn how to structure fixed assets roll-forward, financial liabilities, and equity schedules and link them to the Income Statement, Balance Sheet, and Cash Flow Statement. Knowing how to create a 3-statement financial model in Excel will help you analyze the published historical information of a company and prepare the budget and forecast in the same format. This is an important skill for accountants, financial analysts, FP&A professionals, and everyone who participates in business decision-making. Enrol now to master your financial modeling skills to the next level!
The Building a 3-Statement Model in Excel course will teach you the basics of financial modeling. Most importantly, you will learn:
In this introductory lesson, you will get acquainted with the purpose and content of this course—building a complete 3-statement model in Excel. You will meet your instructor who will introduce you to the upcoming exercise.
In this section, we start building the Excel model’s framework. You will learn how to create a mapping of the trial balance, build the Income Statement and Balance Sheet output sheets, and fill them with data using various Excel formulas. Once the historical model is complete, we add the forecast period to the side.
After building the Excel model’s framework, you will learn how to integrate multiple forecasting scenarios. In this section, we demonstrate how to use the Choose & Match, Vlookup, and Columns Excel functions to simulate forecasted results in the worst, base, and best-case scenarios. In addition, you will learn to calculate historical DSO, DPO, and DIO multiples and make relevant forecast assumptions.
In the last section of this practical Building a 3-statement Model in Excel course, we complete a few Balance Sheet schedules, including the fixed assets roll forward, financial liabilities, and equity schedules. Lastly, we prepare the Cash Flow Statement, and with that, we finalize the comprehensive 3-statement model in Excel.
Student feedback
“The 3-Statement Model is the building block in financial analysis on which more complicated models, such as sensitivity and scenario analysis, are built.”
Ned Krastev
CEO at 365 Data Science
Building a 3-Statement Model in Excel
with Ned Krastev
