Modelling - Effigy Consulting

FINANCIAL MODELLING

A Financial Model is a powerful decision-making tool for your organisation. Whether it is setting your budget for the next year or examining the impact of a proposal, the ability to dynamically test the possibilities allows you to quickly understand the right course of action.

This speed, certainty, and shared understanding around a single point of truth allow you to spend a greater amount of time determining how the decision will be effectively implemented, and the positive financial outcomes achieved.

Understand your Business

The process of working with Effigy Consulting to build your model is also designed to enhance your understanding of your business.

Reducing complex interactions into their simplest form brings value even before the final product is produced.

Save Time

With a financial model in place, you save time both in your yearly budgeting regime and your ad hoc decision support reporting.

Your team is discussing the activities they will complete in the year, not trying to convert them into the financial outcomes.

Make Better Decisions

The true power of a financial model lies in its ability to help you understand the full impact of your decision before you make it.

A bad decision will be evident in the figures of the model, not in the year end accounts.

Grow

The culmination of the time saved and the improved decision making is a business positioned to sustainably grow.

The model is designed to scale with your business, as you add new divisions we can simply add them into the structure you are now confidently using.

MODEL OPTIONS

STANDARD MODEL

With our Standard Model option, you are provided with a 3-way financial model for your business, covering Profit & Loss, Balance Sheet, and Cash Flow Statement.

The model lets you build up your budget from a standardised set of assumptions. This process ensures you consider unit volumes and operational constraints that will impact on profitability, rather than basing your budget on working backward from a revenue target.

Effigy Consulting will work with your team to draw out these assumptions, aiding you in gaining a shared understanding of your business in the process.

You will also be shown how to use the model as a decision-making tool, by scenario testing the outcomes of changes to your organisation within the model.

PREMIUM BESPOKE MODEL

With our premium financial model service, we embed ourselves into your business to develop a model that is designed from the ground up to represent the interaction of the moving parts that make up your unique economic engine.

This process will allow us to model in more depth the various aspects of your operations that can impact on the financial outcomes. For example, an online business connected the revenue line back to the unique visitors from different channels. This allowed us to not only give clear guidance to the web team on the metrics needed to meet budget, but to also identify which channels were resulting in the profitable sales and focus on developing those channels.

A bespoke model leaves your business with a tool that becomes integral to the decision-making process, removing the uncertainty of financial outcomes. This clear space allows the internal conversation to be elevated and focused on the effective execution of the right strategy, rather than bogged down in the selection of the strategy.

SPREADSHEET SYSTEM REVIEW

Despite businesses now having access to software like never before, the humble spreadsheet still has an important role in carrying out analysis and making information usable for the business.

However, unmanaged this can lead to a web of disconnected spreadsheets. Often with the added problem that these sheets have multiple versions and significant overlap in intended outcome.

Effigy Consulting can look at the structure of your internal models to ensure they are working appropriately, and are designed to continue to deliver the outcomes intended. We can also look at the system of spreadsheets to ensure that you have a clear understanding of what each model or report is aiming to achieve and that your organisation has a shared understanding of the correct version to be using.