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.
‘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/