Financial Planning & Analysis (FP&A) Monthly Cash Flow Forecast Modelling and Building a Financial Model in Excel

Financial Planning & Analysis (FP&A) Monthly Cash Flow Forecast Modelling and Building a Financial Model in Excel

BOTI’s financial planning & analysis (FP&A) course gives you the forecasting tools that empower you to get down to building a monthly cash flow forecasting model from the ground up.

BOTI’s financial planning & analysis (FP&A) course gives you the forecasting tools that empower you to get down to building a rolling 12 month cash flow forecast model from the ground up.

‘Get to the bottom of top financial modelling’

Course description part 1 – Financial Planning & Analysis (FP&A) Monthly Cash Flow Forecast Modelling

Get down to building a cash flow forecast model from the ground up

This course is a must in learning to build monthly financial models and is critical for those working in Financial Planning and Analysis (FP&A), accounting or finance departments.

A richly blended learning experience

Hands-on skills and knowledge of a local facilitator and training expertise of international specialists combine to create a platform that affords a richly blended learning experience to equip you with the necessary building blocks essential to generating a full-scale monthly cash flow model that includes financials and assumptions as well as supporting charts and schedules.

The course material embraces and examines in detail the manner in which operating expenses, forecast revenues and variations in balance sheet items determine monthly cash flow.

When it comes to financials, forewarned is forearmed

In learning to assess business financial impact, forewarned is forearmed.   You will learn how to determine the necessary measures that need to be taken to maximise business potential, for example whether there is a need to raise capital.

Best-practise methodologies

Armed with modelling best-practise methodologies, you will learn how to evaluate credit metrics and create well-designed charts used to help inform management decisions.

BOTI’s financial planning & analysis (FP&A) course gives you the forecasting tools that empower you to get down to building a monthly cash flow forecasting model from the ground up.

What will I learn from this module?

  • Using Excel, how to apply a structured approach to monthly cash flow modelling.
  • Based on the business plan, how to build the assumptions and formulas essential to forecast the business on a month to month basis.
  • To develop an understanding of how to forecast the financial statements.
  • How to calculate monthly cash flow.
  • How to analyse the impact of the forecast on the balance sheet and capitalisation.
  • Produce relevant graphs that illustrate the cash flow profile to inform management decisions.

Course curriculum

  • Introduction

Downloadable files

Key learning objectives

Preview

 

  • Financial Modelling best practices

Robust models

Inputs and assumptions

Formulas and processing

Outputs and graphs

Trade-offs

Quiz – best practices

 

  • Modelling Cash Flows (review)

Key learning objectives

Operating cash flow

Investing cash flow

Financing cash flow and circular references

Quiz – cash flow modelling

 

BOTI’s financial planning & analysis (FP&A) course gives you the forecasting tools that empower you to get down to building a monthly cash flow forecasting model from the ground up.

  • Building your financial model in Excel

Assumptions and drivers

Income statement revenue to EBITDA

Balance sheet:  AR, inventory & AP

Supporting schedules: PP&E and debt

Completing the income statement and balance sheet

Cash flow statement and cash balance

Review

  • Enhancing your model

Key learning objectives

Conditional formatting

Data validation

Protecting the worksheet

Graphs and charts

  • Final product

Roll forward one month (example)

Wrap up

Download completed model

BOTI’s financial planning & analysis (FP&A) course gives you the forecasting tools that empower you to get down to building a monthly cash flow forecasting model from the ground up.

 

Course description part 2 – Building a Financial Model in Excel

The essentials to building a financial model in Excel

Guided by the course video material, this module will teach you the essentials of building a financial model in Excel.

Essential preparation

This module is essential preparation for a career in investment banking, FP&A, development and advancement in corporate positions as well as other areas of corporate finance.

Section 1 – Financial modelling: a structured approach

  • Learn to apply a structured approach to financial modelling in Excel.
  • How to outline the hallmark of a good financial model.
  • Develop an understanding of and explain the importance of financial model planning and preparation.
  • Build from operating revenue through to operating profit.

Section 2 – Forecasting the income statement and balance sheet

  • Forecast property, plant and equipment as well as other operating assets.
  • Forecast the various components of working capital including:
    • Accounts receivable
    • Inventories
    • Accounts payable

Section 3 – Debt and financing schedules

  • Forecast debt financing and related interest costs.
  • Forecast equity financing and dividends.
  • Use an iterative analytic approach in managing circular references.

 

BOTI’s financial planning & analysis (FP&A) course gives you the forecasting tools that empower you to get down to building a monthly cash flow forecasting model from the ground up.

Section 4 – Building a free cash flow statement

  • Understand the importance of error checking
  • Derive a forecast cash flow statement based on a forecast income statement and balance sheet
  • Derive a free cash flow statement that can be used in equity evaluation

 

Course curriculum

  • A structured approach to financial modelling

Downloadable Files

Session objectives

Key structure for model building

Modelling best practice

Inherent tensions in model building

Quiz

Model inputs

Using data validation

Using data validation to find invalid data

Data validation demonstration

Data validation exercise

Model processing

Quiz

Model outputs

Locking / unlocking cells

Protecting a worksheet

Protecting data exercise

Protecting data demonstration

Grouping cells demonstration

Grouping cells exercise

The four step approach

Forecasting operating revenues and profits

Quiz

Forecasting revenues

Forecasting gross margin and SG&A expenses

Income forecast section 1 demonstration

Income forecast section 1 exercise

Section 1 conclusion

  • Forecasting income statement and balance sheet items

Session objectives

Our financial forecast modelling framework

Forecasting financial statements

Quiz

Forecasting property, plant & equipment

Capital asset (PP&E) turnover ratio

Forecasting PP&E acquisitions and disposals

Forecasting PP&E demonstration

Forecasting PP&E exercise

Forecasting working capital

Quiz

Working capital equations

Forecasting working capital demonstration

Income forecast exercise

Section 2 conclusion

BOTI’s financial planning & analysis (FP&A) course gives you the forecasting tools that empower you to get down to building a monthly cash flow forecasting model from the ground up.

  • Debt and financing schedules

Section objectives

A financial forecast modelling framework

Forecasting financial statements

 

  • Building a free cash flow forecast

A financial forecast modelling framework

Forecasting financial statements

Cash flows from operating activities

Quiz

Forecasting operating cash flows demonstration

Forecasting operating cash flows exercise

Cash flows from investing activities

Quiz

Cash flows from financing activities

Investing and financing cash flows demonstration

Forecasting investing / financing cash flows exercise

Forecasting free cash flows to the firm

ABC Inc. example

ABC Inc. example – free cash flow to the firm

Quiz

Forecasting free cash flow to equity

ABC Inc. example – free cash flow to equity

Reconciling free cash flows

Free cash flow valuation demonstration

Free cash flow valuation exercise

Section 4 conclusion

BOTI’s financial planning & analysis (FP&A) course gives you the forecasting tools that empower you to get down to building a monthly cash flow forecasting model from the ground up.

  • Qualified Assessment

Qualified Assessment

Course Evaluation

Want to learn even more?  https://boti.co.za/accounting-fundamentals-construct-income-statement/

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