Definition of financial modeling
A financial model is an excel spreadsheet that projects the 3 financial statements of a business into the future. The three financial statements are the income statement, balance sheet, cash flow statement which are based historical data and expected value drivers.
Financial accounting statements are prepared for the benefit of those outside the company.
Are you profitable?
Do you collect your “net profit”?
What are you worth?
Do you collect your “net worth”?