What is a financial model anyway? Modeling involves designing and manipulating a mathematical representation of an economic system or corporate financial application so that the effect of changes can be studied and forecast.
Why are TechNexxus financial models different? Because they are more comprehensive, model all costs and relevant impacts and are easy to read and understand. We tap into our knowledge of analytics, business, technology, law and visualization, give our software developers and math experts a workout, and embed our logic in Excel spreadsheets, databases, software applications and knowledgebases.
What does a financial model look like? TechNexxus will be posting an entire library of financial models in our resource area. A simple representation would be a simple table with revenue and costs separated into categories running up and down the y-axis of the page, and time (typically including 1 year of historic actuals, current budgets, and the project duration) running across the x - axis
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Last Year Actual $
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This Years' budget $
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Next Year(s) $
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| Cost |
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| Net |
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They really are this simple. The challenge lies in (i) coaxing this information out of your enterprise information systems accurately, quickly and cost - effectively; (ii) understanding your historic information and applicable trends and market forces well enough to predict the future. That's why TechNexxus focuses on analysis, not just reporting.