Create A 3-Statement Budget Model In Excel

Learn how to build professional 3-statement budget models in Excel

What you'll learn
Know how to organize models in Excel
Be able to budget the business performance
Know how to model financial statements
Understand how the financial statements are linked together
Enhance your current Excel files
Format spreadsheets in a professional way
Know how to forecast sales and expenses
Understand the key assumptions that drive a budget
Requirements
Microsoft Excel 2010 or later
Comfortable with Basic Excel Functionality
Knоwledge on Fundamental Accounting Principles
Description
If you are currently working in an FP&A role, or anywhere between accounting and finance, there’s a high chance you’ll probably face the challenge of preparing a company's budget statement. It would be great if you are ready to tackle such a challenge with confidence and promptly.And this is the course to prepare you for that!You will start with an empty Excel spreadsheet and build a complete dynamic model for a 3-statement budget in Excel!What you’ll get out of this course?Create a 3-statement Budget Model in Excel course will guide you through the actual practical process of creating a budget model in Excel, step by step. We will define a clear structure and build a robust dynamic model, which you can reuse over and over again. I will help you understand the flow of information between different parts of a budget model. You will gain knowledge on how to forecast sales, production cost and other expenses. We will define a consistent framework of formatting our model, to make it easier to read and understand, even after time has passed.I will show you some ways to tremendously improve the value of your budget by adding validation checks, dynamic scenarios, and sensitivity analysis. We will take it to the end and prepare a summary sheet that is ready to print and share with stakeholders.For this course, I anonymized a real set of company data so that you will see a real-life example.After you take the Create a 3-statement Budget Model in Excel course, you will have the confidence to prepare your complex models and bring value to any budget you have to work on.What should you know to take the course?This course is aimed at an intermediate level of students. We will go over the main shortcuts and formulas that we use in the model, and you will have to become familiar with those, to be able to follow along. I expect you to have solid fundamental knowledge on Excel, be able to use formulas, link to cells in other sheets, know how the standard formatting tools and the ribbons work. If you are entirely new to Excel, this course will be hard to take. Please, take a look at some of the excellent introductory courses here on Udemy, and come back after you’ve mastered the fundamentals of Excel.To fully understand the model, you will need some basic accounting knowledge. I explain everything whenever we go into specifics. Still, I expect you to be familiar with an Income Statement, Balance Sheet, and Cash Flow Statement, have a general idea of how these are linked together. I would also expect you to understand words like Depreciation and Amortization, Interest, Cash Flows, and other similar terms.It would still be possible to follow along and learn a lot from the course, even without basic accounting knowledge, but I would suggest you get yourself familiar with that first, and then take the Create a 3-statement Budget Model in Excel course.Who is this course for?I made the Create a 3-statement Budget Model in Excel course to serve as a practical guide on how to build high-quality budgets in real companies. The course is most suitable for:Junior to Mid-Senior finance and accounting professionals, who are engaged in the budgeting process;Business owners and entrepreneurs who want to understand how budgeting works in practice;Managers in start-ups where no finance professionals are available;Students in Finance and Economics majors who wish to get a head start.I hope you are ready to upgrade yourself, learn how to build a 3-statement budget model in Excel, and propel in your career!Are you excited to start?Then enroll in the course, and I’ll see you in class!

Overview

Section 1: Getting Ready

Lecture 1 Introduction to the Course

Lecture 2 About this Course

Lecture 3 Enable the Developer Tab in Excel

Lecture 4 Download Resources

Lecture 5 Install Magnimetrics Tools in Excel

Lecture 6 What is Budgeting?

Lecture 7 Excel Functions Refresher

Lecture 8 Excel Shortcuts

Lecture 9 Discuss Source Files

Section 2: Income Statement

Lecture 10 Let's get started

Lecture 11 Create the Sales Budget

Lecture 12 Forecasting Performance Part 1

Lecture 13 Forecasting Performance Part 2

Lecture 14 Starting the Income Statement

Lecture 15 Direct Material Costs

Lecture 16 Production Staff Cost

Lecture 17 Production Overheads

Lecture 18 Issues with linked files

Lecture 19 Mapping the Expenses Budget

Lecture 20 Administrative Expenses

Lecture 21 Selling Expenses

Lecture 22 Expense on Spare Parts

Lecture 23 Depreciation Expense and PPE Schedule

Lecture 24 Amortization Expense and Intangibles Schedule

Lecture 25 Interest Expense and Investment Loan Schedule

Lecture 26 Interest Expense and Working Capital Loan

Lecture 27 Other Expenses

Section 3: Balance Sheet

Lecture 28 Starting the Balance Sheet

Lecture 29 PPE, Intangibles and Deferred Tax Assets

Lecture 30 Cash Conversion Cycle Historical Review

Lecture 31 Working Capital - Annualized Sales and Cost of Goods Sold

Lecture 32 Working Capital - Inventory

Lecture 33 Working Capital - Receivables

Lecture 34 Working Capital - Payables

Lecture 35 Intercompany Receivables

Lecture 36 Other Receivables

Lecture 37 Investment and Working Capital Loans

Lecture 38 Other Payables

Lecture 39 Retained Earnings & Pre-tax Profit

Lecture 40 Share Capital and Reserves

Section 4: Cash Flow Statement

Lecture 41 Link the Cash Flow Statement

Section 5: Improving Our Model

Lecture 42 Dynamic Validation Checks

Lecture 43 Bank Covenants Check

Section 6: Optimizing Our Model

Lecture 44 Optimizations in Admin and Selling Expenses

Lecture 45 Assumptions and Dynamic Scenarios

Section 7: Sharing Our Model

Lecture 46 Create a Print-ready Summary Statement

Lecture 47 Group Model Sections

Lecture 48 Save Without Links

Section 8: Conclusion

Lecture 49 Congratulations!

Section 9: Additional Lectures and Learning Materials

Lecture 50 Running a Monte Carlo Simulation in Excel

Lecture 51 Mapping a Trial Balance to Create Financial Statements

Lecture 52 Sensitivity Analysis in Excel Models

Lecture 53 Pareto Analysis in Excel (80/20 Rule)

Lecture 54 Create a Dynamic Sales Dashboard to Visualize Data

Junior to Mid-Senior finance and accounting professionals, who are engaged in the budgeting process,Business owners and entrepreneurs who want to understand how budgeting works in practice,Managers in start-ups where no finance professionals are available,Students in Finance and Economics majors