Excel Financial Modelling/ Forecast

I have created a 5 year financial forecast utilising three different revenue streams already on excel. I have been told it needs adjusting to reflect the following: 1. There are no obvious mistakes in the formulae, so the numbers are probably OK for the assumptions used. Therefore, my comments related to those that are about making sure that the model is a bit closer to generally accepted modelling practices and more useable for you. 2. Usually, it is important to be able to conduct sensitivity analysis to key assumptions. To do this, it will be very important that all assumptions are contained in stand-alone cells. For example, in principle you should not have formulae such as “=H10+H10*15%”, but rather the 15% would be contained in a separate cell and the formulae referring to that. In that way, the 15% can be varied. In principle, every cell in the model should contain either only a number, or only a formulae derived from references to other cells (but not containing any numbers hard-c0ded within the formula), or a text label. This applies to many, many formulae in the model, which should ideally be re-built. 3. When you are modifying the formulae to isolate numerical assumptions in a model with a time axis (such as with the 15% applying over time), you might treat this is a single global number (i.e. contained in one cell) or as something that could apply in each period, and which could subsequently be individualised per period. The choice is your judgement, but at this stage, it might be easier to use the 15% as a single number that you can change. 4. Sensitivity analysis can be conducted manually or better by using Excel’s DataTable feature to have the results calculated automatically . The conducting of it will allow for you to see if the model makes sense and highlight key drivers of value creation/revenue etc. and help you check whether the assumptions are realistic or need modifying. 5. You may consider slightly modifying the presentation of some of the summary figures.