Financial Modeling, Strategy and Planning

Financial Modeling is a representation of an organization’s operations in numbers. Such models are intended to be used to estimate the valuation of a business or to compare businesses to their peers in the industry. They also act as decision-making tools while undertaking a new project or product. 

Strategic planning based on these models is used to analyze different scenarios, determine project costs, decide on budgets, and allocate corporate resources. Apart from that, an organized and well laid down plan brings foreground client confidence. The general clientele and investors in your business will want to know what actions you took when you deviated from or exceeded projected results, which members of the leadership team played vital roles in this process, and what the next steps are for your business.

At LBC, our seasoned team brings a strong understanding of accounting fundamentals, financial statement analysis, and adept knowledge of industry-specific criteria. With a hands-on approach, we are able to detect areas for improvement or investment in your business and develop a strategic plan for making this all happen.

As part of preparing a forecast, typically an income statement, balance sheet, cash flow statement, and supporting schedules are prepared based on the history of the business and assumptions about the future. Additionally, a number of other factors such as changes in strategy, business model, and economic policy can have an impact on a company’s stock price.

Planned business activities involve some uncertainty. However, you shouldn’t let this deter you from developing a strategic plan. A detailed financial model could be the answer to this problem. It is true that financial models do not make the future more predictable, but they can assist you in selecting amongst the various options and in preparing your business to deal with the complexities during the implementation of a strategy.