Five checks before sharing a financial model

State the question

Describe the decision, time horizon and intended audience in one short note. A cash forecast, an operating budget and a valuation serve different purposes. This blog suggests an internal review method rather than a required reporting format.

Separate inputs from formulas

Use a clearly identified assumption area with units and dates. Keep source references alongside significant inputs. If a percentage changes halfway through the model, make the timing explicit rather than hard-coding it in an isolated formula.

Reconcile the starting point

Check the opening balances against the agreed records. Confirm that schedules reconcile to their summaries and that transfers are not counted twice. A neat chart cannot resolve a difference in the source data.

Test the edges

Try a zero-growth case, a delayed receipt and a cost increase. Check whether totals and cash balances move in the expected direction. Record which risks are outside the model, including uncertainty that cannot be represented by one constant assumption.

Make the handover readable

Label the version, review date and unresolved issues. Provide a short explanation of what changed since the previous version. Preserve an approved copy so a later reader can reproduce the discussion. Where outputs feed financial statements, check the relevant reporting standards separately; a scenario calculation does not establish the accounting treatment.