Financial planning is an important aspect for many managerial tasks and can require the use of quite sophisticated financial excel models. As many financial modeling examples show, a certain standard with respect to the quality of the forecast needs to be respected, no matter if you are an entrepreneur running a start-up organization or an experienced executive in a multinational organization. The reason is investors will ask for certain key financial indicators such as the IRR or NPV which are standard when making financial decisions today. Designing a financial model properly makes it easier for superiors, investors and financial analysts to correctly understand the presented business case and also its upside and downside potential by running the respective sensitivity analyses.
Today, we have many businesses starting Software as a Service (SaaS) business. Such businesses are particularly interesting, given their revenues are pretty predictable as they are based on redurringrecurring sub- scription reveneusrevenues and they normally can scale up very quickly, given they are selling their services via the internet globally. A Saas financial model therefore needs to provide some flexibility when it comes to forecasting the number of subscribers and the pricing of the offered subscriptions. A Saas financial model should address questions on the sources of revenues, expected subscriptions, churn rates, monthly recurring revenues but also other important parameter to any ecommerce business such as the customer acquisition costs. Knowing these important parameters are essential to ensure the financial success of your software as a service business. Using a financial model template provides the basis for additional customization, while making the financial modeling exercise more efficient and effective
Managers love to use financial model templates as they help them to better structure their financial forecasts and ensure a certain quality standard. This does not only saves your energy but also provides them with you a framework for the analysis the business. Financial modeling examples as can be found on eFinancialModels are definitively helpful to provide you with the best assistance in all your financial modeling tasks and will help you perfectly achieve your goal