Financial Modeling

Lesson 2 - Model Design

After completing Lesson 2 you will be able to:


         Identify the three logical parts that make up a basic financial model

         Include error checks into your financial models in Microsoft Excel

         Diagnose five common errors with Microsoft Excel formulas

         Design a financial model so that it can accommodate expansion and growth

         Avoid embedded formulas within your financial model

         Identify specific criteria for crossing over from Microsoft Excel to Microsoft Access

         Identify four design principles advocated by Edward Tufte that apply to how information should be presented


This lesson will highlight concepts and practices associated with good model design. Many of these concepts are illustrated in the Lesson 2 Workbook. Please make sure you download and use this workbook to complete this lesson. Some of the specific lessons embedded in this workbook include:


Tab 1 Basic Layout

Tab 2 Layout where there are numerous parts

Tab 3 Avoid embedding values into formulas

Lesson 2 Learning Objectives