• Understanding the basic functionality and relationships between financial statements

• Explanation of the supporting accounting transactions

• Building assumptions and generalizations about the layout of the models

• Review of basic-to-advanced Excel functions used in integrated statement modeling

• Introduction to the building process of the integrated statement model

• Understanding the nature of the objective/engagement and why we were retained

• Determining the work product required by the company, firm and end-users

• Interviewing team leaders and managing document requests

• Reviewing documents pertaining to organizational structure, business activities, legal and HR

• Reviewing relevant data, financial information, process documentation, etc.

• Assessing information corresponding to analysis and modeling needs

• Organizing the model, document requests, and data received

• Developing the overall model structure and crafting supporting schedules

• Following commonly-recognized best practices for ease of use and collaboration

• Horizontal vs. vertical arrangements

• Importing historical information

• Building baseline forecasts with roll-forwards and streamlined assumptions

• Forecasting assumptions and key drivers for major line items

• Developing the revenue and expense forecast with top-down and bottoms-up approaches

• Analyze fixed vs. variable vs. mixed costs in the build-up of the expense budget

• Building balance sheet roll-forwards for key accounts (receivables, payables, inventory, fixed assets, debt, equity)

• Understanding the drivers of revenue, pricing, and volume

• Building the revenue forecast

• Profiling drivers of costs and the material, labor, and OH forecasts

• Forecasting general overheads (SG&A)

• Identifying key balance sheet account roll-forwards, reconciling beginning/ending balances

• Building out the roll-forward forecasts for all key accounts

• Reviewing common anomalies and nuances within the accounts

• Connecting the financial statements with plugs and ensuring its integrity

• Finalizing the statement of cash flows

• Building “checks” into models to reconcile indirect cash flow and direct cash flows

• Performing quality review, assessing model mechanics and accounting/operating assumptions

• Establishing the connections and performing a QC on the integration

• Considering which line items to serve as plugs

• Modeling the revolving line of credit, cash, and other accrued expenses

• Completing the integration

• Understanding the limitations of the integrated model

• Considering possible scenarios and sensitivities

• Rolling the model forward for future periods and updating information seamlessly

• Updating the model for actual results

• Incorporating a borrowing base forecast of advanced on A/R and inventory

• Building an EBITDA-to-cash bridge forwards and backwards

• Organizing the model for presentations

• Reviewing variances and waterfalls

• Updating the model for operating assumptions

• Reconciling the integrated long-term model with a 13-week cash flow