Financial modeling involves creating a spreadsheet of a company's costs and income to use in calculating the impact of a future event or decision.

Creating a financial model for your business may seem straightforward. However, it is actually a tedious never-ending exercise. Companies are expected to produce these quarterly.

This framework provides a six-step structure on how to project a financial model for a company.

Financial modeling, much like coding, involves numerous interconnected spreadsheet tabs, complex logical structures built through Excel formulas and links.