The Implications of not following a Modelling Standard

Timing is everything and the launch of Microsoft Co-pilot, Season 5 Finale of the Financial Modelling Podcast and the release of this article could not have come at a better time...one could argue this it fate! 😁

Of all the articles in the financial modelling series, the topic of financial modelling standards seems to be the most controversial! 😱

So I opted for an AI co-author (ChatGPT) instead, who wasn’t afraid of getting grilled. 🤖

What is important is adopting something vs nothing. ☝

The latter is still largely the current state of model building in accounting and finance teams. 😥

Most people building models simply don’t follow any consistent best practices and propagate lots of errors! 😜

As a result, #Excel is to blame (not people avoiding best practices)! 😲

Here is a reality check!

Companies sell you software to take you out of #Excel to do what many of the standards advocate! 🤣

Follow some basic principles (like no hardcoding please!) and you will go very far and probably save millions of dollars on software that is rigid! Included in the article are a self-assessment and a few questions you can benchmark yourself against. 👊

Financial modelling still is one of the most highly sought-after skills in todays digital age with a complex business landscape.

Free links and lots more information in this article. 🤑