What Is Financial Modeling And Why Is It So Difficult?
Updated: Oct 20, 2020
Many founders and entrepreneurs come from backgrounds outside of the accounting and finance worlds and find it cumbersome dealing with spreadsheets to forecast financials for their start-ups. Let's demystify the world of financial modeling.
What is financial modeling?
Financial modeling is the process where a person creates a story through the lens of numbers and mathematics. Models are often used to help predict the future and help organizations prepare for what the future holds. Financial modeling is incredibly important in new businesses or start-ups when the founders plan to raise money from outside investors. Investors often want to see some kind of documentation that outlines the business idea and present what the company is expected to make from a financial perspective. This is usually where the graphs and diagrams come in to help communicate how much money your company will make.
Why is financial modeling so difficult?
Financial modeling is often tough for folks that don't have a financial background. Think a bout all those math, accounting, finance majors. These majors carry some pretty hefty vocabulary and use numbers a lot. It often makes something so simple seem much more complex. This is problem that Finply solves. We understand making financial models is difficult so it is our mission to simplify the process for you make modeling easier. When you are a busy start-up founder, you don't have the time to play around in spreadsheets. You deserve to be in front of investors and customers telling your story and securing investments.
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