{"id":31470,"date":"2025-06-18T13:34:04","date_gmt":"2025-06-18T18:34:04","guid":{"rendered":"https:\/\/breakingintowallstreet.com\/?post_type=biws_kb&#038;p=31470"},"modified":"2025-12-17T00:18:16","modified_gmt":"2025-12-17T05:18:16","slug":"financial-modeling-best-practices","status":"publish","type":"biws_kb","link":"https:\/\/breakingintowallstreet.com\/kb\/finance\/financial-modeling-best-practices\/","title":{"rendered":"Financial Modeling Best Practices: How to Give Your Excel Files a \u201cMakeover\u201d"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-flat ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Financial Modeling Best Practices: How to Give Your Excel Files a \u201cMakeover\u201d<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/breakingintowallstreet.com\/kb\/finance\/financial-modeling-best-practices\/#Financial_Modeling_Best_Practices_The_Three_Commandments\">Financial Modeling Best Practices: The Three Commandments<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/breakingintowallstreet.com\/kb\/finance\/financial-modeling-best-practices\/#Financial_Modeling_Best_Practice_1_ALWAYS_List_the_Income_Statement_Balance_Sheet_and_Cash_Flow_Statement_on_the_Same_Tab\">Financial Modeling Best Practice #1: ALWAYS List the Income Statement, Balance Sheet, and Cash Flow Statement on the Same Tab<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/breakingintowallstreet.com\/kb\/finance\/financial-modeling-best-practices\/#Financial_Modeling_Best_Practice_2_Do_NOT_Mix_Assumptions_with_Historical_and_Projected_Numbers_Keep_the_Drivers_in_a_Separate_Area\">Financial Modeling Best Practice #2: Do NOT Mix Assumptions with Historical and Projected Numbers; Keep the Drivers in a Separate Area<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/breakingintowallstreet.com\/kb\/finance\/financial-modeling-best-practices\/#Financial_Modeling_Best_Practice_3_Simplify_and_Consolidate_the_Historical_Financial_Statements_Aim_for_5_%E2%80%93_10_Line_Items_on_Each_Side_of_the_Balance_Sheet\">Financial Modeling Best Practice #3: Simplify and Consolidate the Historical Financial Statements; Aim for 5 \u2013 10 Line Items on Each Side of the Balance Sheet<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/breakingintowallstreet.com\/kb\/finance\/financial-modeling-best-practices\/#Financial_Modeling_Best_Practices_Smaller_Shorter_Commandments\">Financial Modeling Best Practices: Smaller, Shorter Commandments<\/a><\/li><\/ul><\/nav><\/div>\n\n<blockquote><p><strong>Financial Modeling Best Practices:<\/strong> The \u201cbest practices\u201d in Excel-based financial modeling include guidelines around how to set up the financial statements, how to separate drivers from historical and projected numbers, and how to simplify and consolidate the statements; other guidelines relate to color coding, sign conventions, and the structure of formulas.<\/p><\/blockquote>\n<p>\u201cFinancial modeling best practices\u201d is a broad topic that could fill entire books because there are dozens of different model types, and many banks and groups have their own standards.<\/p>\n<p><strong>To limit the scope and make this topic manageable, this article will address only 3-statement models.<\/strong><\/p>\n<p>You can see an <a href=\"https:\/\/mergersandinquisitions.com\/3-statement-model\/\" target=\"_blank\" rel=\"noopener\">example of a 3-statement model built under time pressure in an accompanying article and video on M&amp;I<\/a>.<\/p>\n<p>In a 3-statement model, you forecast a company\u2019s revenue, expenses, and cash flows based on its historical performance and management\u2019s estimates and business plans.<\/p>\n<p>The <strong>normal goal<\/strong> is to estimate how the company will use its <a href=\"https:\/\/breakingintowallstreet.com\/kb\/financial-statement-analysis\/how-to-calculate-free-cash-flow\/\" target=\"_blank\" rel=\"noopener\">Free Cash Flow<\/a> over time (e.g., repay Debt, issue Dividends, make acquisitions, repurchase shares, etc.).<\/p>\n<p>This usage lets you determine how the company\u2019s Debt, Equity, Cash, and other line items will change, which could affect your recommendations in a <a href=\"https:\/\/breakingintowallstreet.com\/kb\/debt-equity\/debt-vs-equity-analysis\/\" target=\"_blank\" rel=\"noopener\">Debt vs. Equity analysis<\/a> (for example).<\/p>\n<p>We will not discuss the <em>numerical assumptions<\/em> used in 3-statement models here, as they are highly specific to the company and industry.<\/p>\n<p>Instead, we will focus on <strong>the mechanics and logistics<\/strong> of setting up these models, whether you\u2019re doing so in a time-pressured case study or on the job.<\/p>\n<p>To illustrate these points, we\u2019ll present a sample 3-statement model for Monster Beverage (MONST) with serious problems.<\/p>\n<p>The \u201cBefore\u201d version contains the major issues, and the \u201cAfter\u201d version (i.e., following an \u201cExcel makeover\u201d) fixes them:<\/p>\n<h3><strong>Files &amp; Resources:<\/strong><\/h3>\n<ul>\n<li><a href=\"https:\/\/youtube-breakingintowallstreet-com.s3.us-east-1.amazonaws.com\/Finance\/Best-Practices\/101-11-Monster-Wrong-Model.xlsx\" target=\"_blank\" rel=\"noopener\">Monster Beverage \u2013 3-Statement Model \u2013 Problematic Version (XL)<\/a><\/li>\n<li><a href=\"https:\/\/youtube-breakingintowallstreet-com.s3.us-east-1.amazonaws.com\/Finance\/Best-Practices\/101-11-Monster-Fixed-Model.xlsx\" target=\"_blank\" rel=\"noopener\">Monster Beverage \u2013 3-Statement Model \u2013 \u201cExcel Makeover\u201d Version (XL)<\/a><\/li>\n<li><a href=\"https:\/\/youtube-breakingintowallstreet-com.s3.us-east-1.amazonaws.com\/Finance\/Best-Practices\/101-11-Financial-Modeling-Best-Practices-Slides.pdf\" target=\"_blank\" rel=\"noopener\">Financial Modeling Best Practices \u2013 Slides (PDF)<\/a><\/li>\n<li><a href=\"https:\/\/youtube-breakingintowallstreet-com.s3.us-east-1.amazonaws.com\/Finance\/Best-Practices\/101-11-Monster-Financial-Statements.pdf\" target=\"_blank\" rel=\"noopener\">Monster Beverage \u2013 Financial Statements from 10-K (PDF)<\/a><\/li>\n<li><a href=\"https:\/\/youtube-breakingintowallstreet-com.s3.us-east-1.amazonaws.com\/Finance\/Best-Practices\/101-11-Monster-10-K-Excel.xlsx\" target=\"_blank\" rel=\"noopener\">Monster Beverage \u2013 10-K Annual Report in Excel Format (XL)<\/a><\/li>\n<\/ul>\n<h3><strong>Video Table of Contents:<\/strong><\/h3>\n<ul>\n<li><strong>0:00:<\/strong> Introduction<\/li>\n<li><strong>5:54:<\/strong> Part 1: The Three Commandments<\/li>\n<li><strong>10:41:<\/strong> Part 2: How to Give Your Excel Files a Makeover<\/li>\n<li><strong>12:30:<\/strong> Consolidation and Assumption Separation<\/li>\n<li><strong>14:56:<\/strong> Separating\/Checking Others<\/li>\n<li><strong>16:57:<\/strong> Part 3: Smaller Issues and Best Practices<\/li>\n<li><strong>21:59:<\/strong> Recap and Summary<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Financial_Modeling_Best_Practices_The_Three_Commandments\"><\/span><strong>Financial Modeling Best Practices: The Three Commandments<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In our view, the three most important \u201ccommandments\u201d in <em>all<\/em> 3-statement models are as follows:<\/p>\n<p><strong>1) ALWAYS List the Income Statement, Balance Sheet, and Cash Flow Statement on the Same Tab (i.e., the same worksheet).<\/strong><\/p>\n<p><strong>2) Do NOT Mix Drivers with Historical and Projected Numbers; Keep the Drivers in a Separate Area.<\/strong><\/p>\n<p><strong>3) Simplify and Consolidate the Historical Financial Statements; Aim for 5 \u2013 10 Line Items on Each Side of the Balance Sheet (lower is better).<\/strong><\/p>\n<p>The \u201cBefore\u201d model here follows none of these commandments, so the student who submitted it is committing a form of sacrilege:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-31471 size-full\" title=\"Financial Modeling Best Practices - Incorrect Model Setup\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132351\/01-Incorrect-Model-Setup.jpg\" alt=\"Financial Modeling Best Practices - Incorrect Model Setup\" width=\"1908\" height=\"778\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132351\/01-Incorrect-Model-Setup.jpg 1908w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132351\/01-Incorrect-Model-Setup-300x122.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132351\/01-Incorrect-Model-Setup-1024x418.jpg 1024w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132351\/01-Incorrect-Model-Setup-768x313.jpg 768w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132351\/01-Incorrect-Model-Setup-1536x626.jpg 1536w\" sizes=\"(max-width: 1908px) 100vw, 1908px\" \/><\/p>\n<p>In the \u201cAfter\u201d version, by contrast, all these issues are fixed:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-31472 size-full\" title=\"Financial Modeling Best Practices - Correct Model Setup\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132416\/02-Correct-Model-Setup.jpg\" alt=\"Financial Modeling Best Practices - Correct Model Setup\" width=\"1913\" height=\"839\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132416\/02-Correct-Model-Setup.jpg 1913w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132416\/02-Correct-Model-Setup-300x132.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132416\/02-Correct-Model-Setup-1024x449.jpg 1024w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132416\/02-Correct-Model-Setup-768x337.jpg 768w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132416\/02-Correct-Model-Setup-1536x674.jpg 1536w\" sizes=\"(max-width: 1913px) 100vw, 1913px\" \/><\/p>\n<div class='code-block code-block-2' style='margin: 8px 0; clear: both;'>\n<div class=\"kb-adinsert-modal\">\n    <div class=\"kb-adinsert-top\">\n      <div class=\"media\">\n          <img decoding=\"async\" class=\"alignnone size-full wp-image-28448\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2024\/04\/24164120\/adv-fm-tile.png\" alt=\"PowerPoint Pro\" width=\"128\" height=\"128\" \/>\n      <\/div>\n      <div class=\"content\">\n          <h3>Master Financial Modeling for Investment Banking With <strong>BIWS Core Financial Modeling<\/strong><\/h3>\n      <\/div>\n    <\/div>\n    \n    <div class=\"full_text\">\n    \t<ul>\n        \t<li>\n            \t<h4>Become a financial modeling pro<\/h4>\n              <p>158 videos, detailed written guides, Excel files, quizzes, and more<\/p>\n\t\t\t    <\/li>\n          <li>\n          \t<h4>Complete 10+ detailed global case studies<\/h4>\n            <p>These include both the theory and the practical applications<\/p>\n\t\t\t    <\/li>\n          <li>\n          \t<h4>Prepare for your internship or full-time job<\/h4>\n            <p>Gain the skills you need to \u201chit the ground running\u201d on Day 1\n\n<\/p>\n\t\t\t  <\/li>\n      <\/ul>\n        \n      <a class=\"cta-link orange-button-medium\" href=\"https:\/\/breakingintowallstreet.com\/core-financial-modeling\/\" target=\"_blank\">Full Details<\/a>\n      \n      <a class=\"cta-link orange-button-medium bg-blue\" href=\"https:\/\/biws-support.s3.us-east-1.amazonaws.com\/Course-Outlines\/Core-Financial-Modeling-Course-Outline.pdf\" target=\"_blank\" rel=\"noopener\">Short Outline<\/a>\n    <\/div>\n<\/div><\/div>\n\n<p>Here\u2019s why each commandment is important and how to implement them in models:<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Financial_Modeling_Best_Practice_1_ALWAYS_List_the_Income_Statement_Balance_Sheet_and_Cash_Flow_Statement_on_the_Same_Tab\"><\/span><strong>Financial Modeling Best Practice #1: ALWAYS List the Income Statement, Balance Sheet, and Cash Flow Statement on the Same Tab<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>It is <strong>FAR<\/strong> easier to build, modify, and \u201cdebug\u201d (fix) 3-statement models when they\u2019re set up like this.<\/p>\n<p>When you use the Ctrl + [ or Ctrl + ] shortcut keys to jump to precedents and dependents, it\u2019s very easy when the statements are all on one tab: You simply jump up or down to the formulas or numbers that flow in or out.<\/p>\n<p>If each statement is on a separate tab, you\u2019ll be jumping around between sheets, and it\u2019s much harder to trace the flow of formulas.<\/p>\n<p>Some people claim that putting the statements on separate tabs makes models more \u201corganized.\u201d<\/p>\n<p>These people have no real-world experience with maintaining, fixing, and updating financial models and should not be taken seriously.<\/p>\n<p>The <strong>ONLY<\/strong> case where it\u2019s appropriate to split up the statements is if a company or case study provider sends you a model structured like this and specifically requests that you follow their format.<\/p>\n<p>If you get a model that is split up like this, you should <strong>cut and paste<\/strong> each statement to the same tab, check the links, and do a find-and-replace to fix unnecessary spreadsheet name references:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-31473 size-full\" title=\"Cut and Paste Fixes for a Model\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132452\/03-Cut-Paste-Fix.jpg\" alt=\"Cut and Paste Fixes for a Model\" width=\"1919\" height=\"732\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132452\/03-Cut-Paste-Fix.jpg 1919w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132452\/03-Cut-Paste-Fix-300x114.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132452\/03-Cut-Paste-Fix-1024x391.jpg 1024w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132452\/03-Cut-Paste-Fix-768x293.jpg 768w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132452\/03-Cut-Paste-Fix-1536x586.jpg 1536w\" sizes=\"(max-width: 1919px) 100vw, 1919px\" \/><\/p>\n<p><strong>Final Note:<\/strong> Separate tabs or worksheets in <a href=\"https:\/\/mergersandinquisitions.com\/financial-modeling\/\" target=\"_blank\" rel=\"noopener\">financial models<\/a> are fine <em>for certain purposes<\/em>, such as supporting schedules or separate analyses (e.g., the <a href=\"https:\/\/mergersandinquisitions.com\/wacc-formula\/\" target=\"_blank\" rel=\"noopener\">WACC calculation<\/a> in a <a href=\"https:\/\/mergersandinquisitions.com\/dcf-model\/\" target=\"_blank\" rel=\"noopener\">DCF<\/a>).<\/p>\n<p>For models above a certain complexity, you will <em>need<\/em> separate tabs at some point.<\/p>\n<p>However, the 3 financial statements for a single company should always be on a single tab, even in more complex models.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Financial_Modeling_Best_Practice_2_Do_NOT_Mix_Assumptions_with_Historical_and_Projected_Numbers_Keep_the_Drivers_in_a_Separate_Area\"><\/span><strong>Financial Modeling Best Practice #2: Do NOT Mix Assumptions with Historical and Projected Numbers; Keep the Drivers in a Separate Area<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This one should be \u201ccommon sense\u201d to most people, but in a surprising number of financial models, the historical and projected numbers (the outputs) are mixed with the drivers (the inputs).<\/p>\n<p>For example, people sometimes list an assumption such as \u201cDeferred Revenue % Revenue\u201d right <em>under<\/em> <a href=\"https:\/\/breakingintowallstreet.com\/kb\/accounting\/deferred-revenue\/\">Deferred Revenue<\/a> on the Balance Sheet and use it to drive the Deferred Revenue.<\/p>\n<p>This is <strong>poor practice<\/strong> because it makes models difficult to audit and makes the summation formulas error-prone:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-31474 size-full\" title=\"Drivers and Projections Mixed in One Area\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132517\/04-Drivers-Projections-Mixed.jpg\" alt=\"Drivers and Projections Mixed in One Area\" width=\"1751\" height=\"800\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132517\/04-Drivers-Projections-Mixed.jpg 1751w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132517\/04-Drivers-Projections-Mixed-300x137.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132517\/04-Drivers-Projections-Mixed-1024x468.jpg 1024w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132517\/04-Drivers-Projections-Mixed-768x351.jpg 768w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132517\/04-Drivers-Projections-Mixed-1536x702.jpg 1536w\" sizes=\"(max-width: 1751px) 100vw, 1751px\" \/><\/p>\n<p>All the drivers and assumptions should be in a separate area, ideally at the top of the model.<\/p>\n<p>There are a few possible <strong>exceptions<\/strong> to this rule.<\/p>\n<p>For example, if you are setting a line item to $0 or 0% in the projected period, or you\u2019re holding it constant, it might be acceptable to include the assumption in line with the forecasts (but this should be done sparingly).<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Financial_Modeling_Best_Practice_3_Simplify_and_Consolidate_the_Historical_Financial_Statements_Aim_for_5_%E2%80%93_10_Line_Items_on_Each_Side_of_the_Balance_Sheet\"><\/span><strong>Financial Modeling Best Practice #3: Simplify and Consolidate the Historical Financial Statements; Aim for 5 \u2013 10 Line Items on Each Side of the Balance Sheet<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This commandment is important because <strong>many line items are small and do not matter.<\/strong><\/p>\n<p>Also, having too many line items on the statements makes it harder to link, check, and modify the projections.<\/p>\n<p>If the Assets side of the company\u2019s <a href=\"https:\/\/breakingintowallstreet.com\/kb\/accounting\/balance-sheet\/\" target=\"_blank\" rel=\"noopener\">Balance Sheet<\/a> has 4 line items representing 90% of Total Assets and 6 items representing the remaining 10%, focus on those 4 important line items!<\/p>\n<p>Consolidate the rest, put them in an \u201cOther\u201d category, and move on to more important things.<\/p>\n<p>Here\u2019s a good example of an area that could be <strong>greatly consolidated<\/strong> (from the \u201cBefore\u201d version of the Monster model):<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-31475 size-full\" title=\"Unconsolidated Balance Sheet\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132540\/05-Unconsolidated-Balance-Sheet.jpg\" alt=\"Unconsolidated Balance Sheet\" width=\"1663\" height=\"786\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132540\/05-Unconsolidated-Balance-Sheet.jpg 1663w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132540\/05-Unconsolidated-Balance-Sheet-300x142.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132540\/05-Unconsolidated-Balance-Sheet-1024x484.jpg 1024w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132540\/05-Unconsolidated-Balance-Sheet-768x363.jpg 768w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132540\/05-Unconsolidated-Balance-Sheet-1536x726.jpg 1536w\" sizes=\"(max-width: 1663px) 100vw, 1663px\" \/><\/p>\n<p>Specific recommendations include:<\/p>\n<ul>\n<li><strong>Consolidate<\/strong> the short-term and long-term versions of items such as Debt, Deferred Revenue, and Investments.<\/li>\n<li><strong>Do NOT show<\/strong> the individual components of Common Shareholders\u2019 Equity (CSE) separately; group them together and only record CSE. If applicable, Preferred Stock and Noncontrolling Interests should still be separate within the Equity section.<\/li>\n<li><strong>Use similar-sounding names<\/strong> to group items; for example, anything starting with \u201cPrepaid\u201d and anything starting with \u201cAccrued\u201d may be grouped.<\/li>\n<\/ul>\n<p>When you simplify and consolidate the Balance Sheet, you should do the same for the <a href=\"https:\/\/breakingintowallstreet.com\/kb\/accounting\/cash-flow-statement\/\" target=\"_blank\" rel=\"noopener\">Cash Flow Statement<\/a> and make sure there\u2019s a corresponding line for each Balance Sheet line.<\/p>\n<p>It\u2019s not always a 1:1 correspondence because in some cases, multiple line items on one statement might correspond to a single line on the other.<\/p>\n<p>But there must always be <em>at least one correspondence<\/em> on the other statement.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Financial_Modeling_Best_Practices_Smaller_Shorter_Commandments\"><\/span><strong>Financial Modeling Best Practices: Smaller, Shorter Commandments<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Besides the big points above, there are also many \u201csmaller commandments.\u201d<\/p>\n<p>These represent items that are simpler to fix than the issues above or that are less serious problems in models, or both:<\/p>\n<h3><strong>Color Code Financial Models Properly<\/strong><\/h3>\n<p>We follow the most common standards for color coding:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-31476 size-full\" title=\"Color Coding Standards\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132601\/06-Color-Coding.jpg\" alt=\"Color Coding Standards\" width=\"1343\" height=\"334\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132601\/06-Color-Coding.jpg 1343w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132601\/06-Color-Coding-300x75.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132601\/06-Color-Coding-1024x255.jpg 1024w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132601\/06-Color-Coding-768x191.jpg 768w\" sizes=\"(max-width: 1343px) 100vw, 1343px\" \/><\/p>\n<p>There\u2019s also a <a href=\"https:\/\/breakingintowallstreet.com\/kb\/excel\/how-to-color-code-in-excel\/\" target=\"_blank\" rel=\"noopener\">full tutorial on how to automate the process here<\/a>.<\/p>\n<p>In this Monster Beverage model, the original color coding isn\u2019t <em>terrible<\/em>, but none of the \u201cinput boxes\u201d have yellow backgrounds, which makes them hard to distinguish.<\/p>\n<p>So, the corrected version changes this to make our assumptions and inputs clearer:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-31477 size-full\" title=\"Input Box Formatting\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132623\/07-Input-Box-Formatting.jpg\" alt=\"Input Box Formatting\" width=\"2230\" height=\"461\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132623\/07-Input-Box-Formatting.jpg 2230w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132623\/07-Input-Box-Formatting-300x62.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132623\/07-Input-Box-Formatting-1024x212.jpg 1024w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132623\/07-Input-Box-Formatting-768x159.jpg 768w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132623\/07-Input-Box-Formatting-1536x318.jpg 1536w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132623\/07-Input-Box-Formatting-2048x423.jpg 2048w\" sizes=\"(max-width: 2230px) 100vw, 2230px\" \/><\/p>\n<h3><strong>Use Proper Sign Conventions on All the Statements<\/strong><\/h3>\n<p>Another issue with the original Monster Model is that many expenses on the <a href=\"https:\/\/breakingintowallstreet.com\/kb\/accounting\/income-statement\/\" target=\"_blank\" rel=\"noopener\">Income Statement<\/a> have positive signs.<\/p>\n<p>This makes summation formulas error-prone because we need to \u201cremember\u201d to subtract items rather than simply adding everything.<\/p>\n<p>The fixed version corrects this and uses negatives for all expenses and cash outflows:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-31478 size-full\" title=\"Financial Modeling Sign Conventions\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132650\/08-Model-Sign-Conventions.jpg\" alt=\"Financial Modeling Sign Conventions\" width=\"2220\" height=\"879\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132650\/08-Model-Sign-Conventions.jpg 2220w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132650\/08-Model-Sign-Conventions-300x119.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132650\/08-Model-Sign-Conventions-1024x405.jpg 1024w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132650\/08-Model-Sign-Conventions-768x304.jpg 768w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132650\/08-Model-Sign-Conventions-1536x608.jpg 1536w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132650\/08-Model-Sign-Conventions-2048x811.jpg 2048w\" sizes=\"(max-width: 2220px) 100vw, 2220px\" \/><\/p>\n<h3><strong>Hard-Code Only the Historical Numbers, Not Projections<\/strong><\/h3>\n<p>You should hard-code all the historical numbers, ideally after linking them in from the company-provided financial statements in Excel.<\/p>\n<p><strong>However, you should not \u201chard-code\u201d the projections directly on the financial statements.<\/strong><\/p>\n<p>Even if you want to set a certain item to 0 all the way across, it\u2019s much better to do this at the top of the model in the assumptions area and then link to it on the statements.<\/p>\n<p>Similarly, it\u2019s also poor practice to simply \u201clink\u201d to the historical line items and keep them constant without referencing a supporting schedule or the other statement.<\/p>\n<p>If something in the model ever changes, the Balance Sheet could go out of balance if you do this.<\/p>\n<p>Here\u2019s an example of this poor practice in the original Monster model:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-31479 size-full\" title=\"Holding Goodwill Constant in the Projections\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132716\/09-Constant-Projections.jpg\" alt=\"Holding Goodwill Constant in the Projections\" width=\"1722\" height=\"718\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132716\/09-Constant-Projections.jpg 1722w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132716\/09-Constant-Projections-300x125.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132716\/09-Constant-Projections-1024x427.jpg 1024w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132716\/09-Constant-Projections-768x320.jpg 768w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18132716\/09-Constant-Projections-1536x640.jpg 1536w\" sizes=\"(max-width: 1722px) 100vw, 1722px\" \/><\/p>\n<div class='code-block code-block-2' style='margin: 8px 0; clear: both;'>\n<div class=\"kb-adinsert-modal\">\n    <div class=\"kb-adinsert-top\">\n      <div class=\"media\">\n          <img decoding=\"async\" class=\"alignnone size-full wp-image-28448\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2024\/04\/24164120\/adv-fm-tile.png\" alt=\"PowerPoint Pro\" width=\"128\" height=\"128\" \/>\n      <\/div>\n      <div class=\"content\">\n          <h3>Master Financial Modeling for Investment Banking With <strong>BIWS Core Financial Modeling<\/strong><\/h3>\n      <\/div>\n    <\/div>\n    \n    <div class=\"full_text\">\n    \t<ul>\n        \t<li>\n            \t<h4>Become a financial modeling pro<\/h4>\n              <p>158 videos, detailed written guides, Excel files, quizzes, and more<\/p>\n\t\t\t    <\/li>\n          <li>\n          \t<h4>Complete 10+ detailed global case studies<\/h4>\n            <p>These include both the theory and the practical applications<\/p>\n\t\t\t    <\/li>\n          <li>\n          \t<h4>Prepare for your internship or full-time job<\/h4>\n            <p>Gain the skills you need to \u201chit the ground running\u201d on Day 1\n\n<\/p>\n\t\t\t  <\/li>\n      <\/ul>\n        \n      <a class=\"cta-link orange-button-medium\" href=\"https:\/\/breakingintowallstreet.com\/core-financial-modeling\/\" target=\"_blank\">Full Details<\/a>\n      \n      <a class=\"cta-link orange-button-medium bg-blue\" href=\"https:\/\/biws-support.s3.us-east-1.amazonaws.com\/Course-Outlines\/Core-Financial-Modeling-Course-Outline.pdf\" target=\"_blank\" rel=\"noopener\">Short Outline<\/a>\n    <\/div>\n<\/div><\/div>\n\n<h3><strong>The Cash Flow Statement Should Always Start with Net Income<\/strong><\/h3>\n<p>Many IFRS-based companies use Cash Flow Statements that start with metrics other than Net Income, such as Operating Income or Pre-Tax Income.<\/p>\n<p>Also, some companies use the \u201cDirect Method\u201d for the CFS, which shows the cash inflows and outflows rather than starting with an IS metric and adjusting it.<\/p>\n<p><strong>For modeling purposes, the CFS should always start with Net Income, and you should find a reconciliation in the company\u2019s financials that allows you to set up the model this way.<\/strong><\/p>\n<p>This process is a bit involved, so it\u2019s beyond the scope of this article, but we cover the topic in <a href=\"https:\/\/breakingintowallstreet.com\/breaking-into-wall-street-courses\/\" target=\"_blank\" rel=\"noopener\">our courses<\/a>.<\/p>\n<h3><strong>Avoid Hidden Sheets, Rows, and Columns<\/strong><\/h3>\n<p>\u201cHiding\u201d sheets, rows, or columns in an Excel file is a terrible idea because it\u2019s easy to miss these and accidentally disclose confidential data to 3<sup>rd<\/sup> parties.<\/p>\n<p>In fact, the first thing you should do when preparing to send any Excel file is to right-click a tab and go to \u201cUnhide\u201d to make sure there are <strong>no hidden sheets:<\/strong><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-31480\" title=\"Excel - Finding Hidden Sheets\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18133041\/10-Hidden-Sheets.jpg\" alt=\"Excel - Finding Hidden Sheets\" width=\"400\" height=\"472\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18133041\/10-Hidden-Sheets.jpg 789w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18133041\/10-Hidden-Sheets-254x300.jpg 254w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18133041\/10-Hidden-Sheets-768x907.jpg 768w\" sizes=\"(max-width: 400px) 100vw, 400px\" \/><\/p>\n<p>Grouping rows and columns presents similar but less serious issues; the best approach here is to <strong>group them<\/strong> so you can click a button to hide and reveal them as needed.<\/p>\n<p>The key difference is that when you <strong>group them<\/strong> rather than hide them, there\u2019s a clear visual indicator, which reduces the chances of errors:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-31481 size-full\" title=\"Grouping vs. Hiding Rows and Columns\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18133111\/11-Grouping-Rows-Columns.jpg\" alt=\"Grouping vs. Hiding Rows and Columns\" width=\"1534\" height=\"1080\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18133111\/11-Grouping-Rows-Columns.jpg 1534w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18133111\/11-Grouping-Rows-Columns-300x211.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18133111\/11-Grouping-Rows-Columns-1024x721.jpg 1024w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18133111\/11-Grouping-Rows-Columns-768x541.jpg 768w\" sizes=\"(max-width: 1534px) 100vw, 1534px\" \/><\/p>\n<h3><strong>Do Not Include Hard-Coded Numbers in Formulas or Cell References<\/strong><\/h3>\n<p>When you\u2019re entering a formula, it should reference other cells and built-in Excel functions, but it should <strong>NOT<\/strong> use hard-coded numbers, such as 300, 112, or 7.<\/p>\n<p>There are a few potential exceptions here for numbers like 1, -1, 0, and 12 for the \u201cMonths in the Year\u201d (since it never changes), but even these should be used sparingly.<\/p>\n<h3><strong>Do Not Link to Multiple Sheets in a Single Formula and Do Not Link to External Files<\/strong><\/h3>\n<p>Linking to multiple other sheets makes it extremely difficult to audit models and change their setup and layout.<\/p>\n<p>If you do this repeatedly, you need to set up the model differently or combine more schedules so that each sheet contains a larger portion of the model.<\/p>\n<p>Linking to <strong>external files<\/strong> is even worse because models will break when these files\u2019 locations, formats, or data change.<\/p>\n<p>If you must do this, copy the file to a separate tab directly within your Excel file and reference it like that.<\/p>\n<p>If the data needs to be updated, use <a href=\"https:\/\/breakingintowallstreet.com\/kb\/excel\/excel-power-query\/\" target=\"_blank\" rel=\"noopener\">Power Query<\/a> or related tools in Excel to do so automatically.<\/p>\n<h3><strong>Used Named Cells and Ranges Sparingly<\/strong><\/h3>\n<p>Named cells are appropriate for assumptions that will be used throughout a model and will stay the same in each period, such as the company\u2019s name, the current date, the tax rate, etc.<\/p>\n<p>Named ranges can also be useful for data retrieval with <a href=\"https:\/\/breakingintowallstreet.com\/kb\/excel\/index-match-function-excel\/\" target=\"_blank\" rel=\"noopener\">INDEX\/MATCH<\/a> or <a href=\"https:\/\/breakingintowallstreet.com\/kb\/excel\/xlookup-in-excel-how-to-use-it-and-whether-or-not-its-a-game-changer\/\" target=\"_blank\" rel=\"noopener\">XLOOKUP<\/a>.<\/p>\n<p>But you don\u2019t want to have a file with 200 named cells.<\/p>\n<p>Use named cells and ranges sparingly and only in cases where you\u2019ll repeatedly reference a single number or area in a model.<\/p>\n<h3><strong>Use MIN\/MAX Rather Than \u201cIf\u201d Where Possible<\/strong><\/h3>\n<p>Functions written with \u201cIF\u201d are sometimes easier to understand, but MIN\/MAX lets you write them more efficiently and test for conditions more robustly.<\/p>\n<p>A perfect example is the standard Revolver formula in an LBO or credit model:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-31482 size-full\" title=\"Revolver - MIN Function Setup\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18133137\/12-Revolver-MIN-Function.jpg\" alt=\"Revolver - MIN Function Setup\" width=\"1634\" height=\"613\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18133137\/12-Revolver-MIN-Function.jpg 1634w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18133137\/12-Revolver-MIN-Function-300x113.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18133137\/12-Revolver-MIN-Function-1024x384.jpg 1024w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18133137\/12-Revolver-MIN-Function-768x288.jpg 768w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18133137\/12-Revolver-MIN-Function-1536x576.jpg 1536w\" sizes=\"(max-width: 1634px) 100vw, 1634px\" \/><\/p>\n<p>We could write this with an IF statement instead, but it\u2019s more like a blaster than a lightsaber this way:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-31483 size-full\" title=\"Revolver - IF Statement Setup\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18133203\/13-Revolver-IF-Statement.jpg\" alt=\"Revolver - IF Statement Setup\" width=\"1655\" height=\"553\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18133203\/13-Revolver-IF-Statement.jpg 1655w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18133203\/13-Revolver-IF-Statement-300x100.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18133203\/13-Revolver-IF-Statement-1024x342.jpg 1024w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18133203\/13-Revolver-IF-Statement-768x257.jpg 768w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18133203\/13-Revolver-IF-Statement-1536x513.jpg 1536w\" sizes=\"(max-width: 1655px) 100vw, 1655px\" \/><\/p>\n<p>It\u2019s not \u201cwrong\u201d because it still works, but it\u2019s a better style to use MIN\/MAX for a shorter formula.<\/p>\n<h3><strong>Use Custom Number Formats Sparingly<\/strong><\/h3>\n<p>Custom number formats, which let you format numbers like \u201cvaluation multiples\u201d or in abbreviated ways, can be very useful:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-31484 size-full\" title=\"Custom Number Formats in Excel\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18133228\/14-Custom-Number-Formats.jpg\" alt=\"Custom Number Formats in Excel\" width=\"1669\" height=\"868\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18133228\/14-Custom-Number-Formats.jpg 1669w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18133228\/14-Custom-Number-Formats-300x156.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18133228\/14-Custom-Number-Formats-1024x533.jpg 1024w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18133228\/14-Custom-Number-Formats-768x399.jpg 768w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2025\/06\/18133228\/14-Custom-Number-Formats-1536x799.jpg 1536w\" sizes=\"(max-width: 1669px) 100vw, 1669px\" \/><\/p>\n<p>You can set them up by going to Ctrl + 1 in Excel, Number, Category, and Custom.<\/p>\n<p><strong>But you should not go overboard with them.<\/strong><\/p>\n<p>Adding a few custom formats to your file is fine, but if you start adding dozens, the file could easily \u201cbreak,\u201d and you might lose much of your formatting.<\/p>\n<h3><strong>Use Circular References Sparingly and Always Allow Them to Be Disabled<\/strong><\/h3>\n<p>We discuss <a href=\"https:\/\/breakingintowallstreet.com\/kb\/excel\/circular-reference-excel\/\" target=\"_blank\" rel=\"noopener\">circular references in another article<\/a>, but they arise when a cell\u2019s input depends on its output.<\/p>\n<p>For example, the Interest Expense, when calculated based on the average Debt balance, depends on the Beginning and Ending Debt in a period.<\/p>\n<p>But the Ending Debt changes based on this Interest Expense!<\/p>\n<p>A higher Interest Expense means that the company will repay less Debt because its cash flows are lower (and vice versa for a lower Interest Expense).<\/p>\n<p>So, the Interest Expense depends on the Ending Debt, but the Ending Debt also depends on the Interest Expense.<\/p>\n<p>This circular reference is easy to resolve: <strong>Build in the option to calculate interest based on the beginning balance OR the average balance.<\/strong><\/p>\n<p>You should <em>always<\/em> include the option to disable circular calculations or use alternate methods to remove them, such as <a href=\"https:\/\/breakingintowallstreet.com\/kb\/project-finance\/debt-sculpting-vs-debt-sizing\/\" target=\"_blank\" rel=\"noopener\">with VBA in Project Finance<\/a>.<\/p>\n<p>They can make models unstable and difficult to modify, so it\u2019s poor practice to leave them in without any alternatives.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The \u201cbest practices\u201d in Excel-based financial modeling include guidelines around how to set up the financial statements, how to separate drivers from historical and projected numbers, and how to simplify and consolidate the statements; other guidelines relate to color coding, sign conventions, and the structure of formulas.<\/p>\n","protected":false},"featured_media":0,"template":"","class_list":["post-31470","biws_kb","type-biws_kb","status-publish","hentry","kb_category-finance"],"acf":[],"_links":{"self":[{"href":"https:\/\/breakingintowallstreet.com\/wp-json\/wp\/v2\/biws_kb\/31470","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/breakingintowallstreet.com\/wp-json\/wp\/v2\/biws_kb"}],"about":[{"href":"https:\/\/breakingintowallstreet.com\/wp-json\/wp\/v2\/types\/biws_kb"}],"wp:attachment":[{"href":"https:\/\/breakingintowallstreet.com\/wp-json\/wp\/v2\/media?parent=31470"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}