A financial model is a tool for decisions, not a decoration for a proposal. Lenders and investors test it quickly, and a model that fails the first few questions damages trust in the rest of the document.
Integrated statements
The income statement, balance sheet and cash flow should be linked, so that a change in one flows through the others. A balance sheet that does not balance, or a cash flow that does not reconcile, is the fastest way to lose credibility.
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