Financial data modelling dubai
                     FINANCIAL DATA MODELING its
applications, Uses and training.
What is Financial 
Modelling?
 Overview of financial statements
 Planning vs modelling
 The ‘what if’ mind-set
 The importance of assumptions
 Dealing with uncertainty
 What does a financial model 
communicate?
 Market metrics such as conversion rates
The Financial 
FSintaancitale Stmatemeenntts Overview
Income statement or Profit or Loss Statement How much money we have or will have made and
spent over a period of time?
Shows Financial Performance
Statement of Financial Position or Balance Sheet How many valuable things we own and how 
many  things do we owe plus what is our equity  
(shareholdings+ money made & held till date) at 
a  chosen point in time?
Assets= Liabilities 
Equity  Shows 
Financial Health
Cash Flow Statement How much cash has entered and exited in 
the  business?
What is the net cash flow over a period of 
time?
Capitalisation Table How have we distributed our equity between 
founders,  employees and investors?
Pre money valuations and Post Money 
valuations  Shows rounds of funding and 
results
Planning Vs 
PMlanonidngelling Modelling
Process of creating an action plan Process of creating and valuating assumptions
Based on targets Based on assumptions and variables
Input or Output Driven Input Driven
Part of a Business Plan Mostly Guides Business Planning
Steps are outlined to achieve goals Presents how the goals set will create value
Establishes the outcomes on intentions, more Explores what ifs and the outcomes
based  on ifs than what ifs
Explains the steps needed to achieve goals Explains how the steps taken will generate 
an  outcome
The “what if” mind 
set
 The process of thinking through scenarios and asking questions on a range of 
          well  thought out assumptions
 Enables validation of assumptions used for the financial model
 Enhances understanding of the business and financial model
 Adds flexibility to the financial model by changing inputs
 Shows effects of completing set goals and milestones based on how well they 
will  be achieved
The Importance of 
Assumptions
 Assumptions are the basic map for creating any model
 The assumptions decrease uncertainty
 The financial model is as good as the assumptions used to build the model
 Assumptions are the key to achieving “buy in” from investors, partners and 
employees
 Assumptions guide not only the financial but also business modelling & planning
 Assumptions have to be well thought out, researched and tested
Dealing with 
uncertainty
 Uncertainty is the fear of the unknown
 or the risk faced from variables that are not accounted for
 and those variables that cannot be evaluated
 Uncertainty is reduced through assumptions, modelling and 
research
 Uncertainty is reduced as assumptions add some level of 
certainty
 A model that responds to range of inputs decreases uncertainty
 Uncertainty is productive as it keeps us sharp and prepared!!!!
What does a Financial Model  
Communicate?
 It shows that you understand your business and how it works.
 It shows how your assumptions and plans will generate value
 It allows investors to evaluate some aspects of your business
 It shows how a range of inputs will impact on the outputs i.e profits and costs
 It shows how your business will likely perform over a period of time
 A good financial plan shows that you have had a reality check and are not working 
on
guesses and blind devotion
Importance of Marketing 
Metrics
 Your key assumptions will be based on how your marketing will work?
 How do you plan to reach your target market?
 How do you plan to turn your target market into customers?
 How much time and cost will you incur in the process of gaining customers?
 How much value will each customer add to your business?
 What are the expected range of conversion rates for marketing efforts of your 
business?
Summar
y
 The financial model is expressed through financial statements.
 Financial models are dynamic, assumption based and input driven.
 Financial models are built with a “what if” mind-set.
 Financial models deal with uncertainty, but do not eliminate it.
 Financial models communicate information to aid decision making and 
planning.
 For a start up, marketing metrics drive the creation of the financial modelling.
Boost your career with 
financial data modeling course i
n Dubai
 by Mindcypress.
UAE: 2901 57, PRIME TWR , Business Bay Dubai , Dubai 79998 
U.A.E
+971-52-356-0057
+971 50 263 0850
[email protected]
Course page: 
https://www.blog.mindcypress.com/what-is-the-advantage-of-financial-m
odeling/