CFO Services

Expand your Financial Modeling Services

Written by Analytix Editorial Team | August 25, 2023

Financial modeling is an essential part of the forecasting process, as it allows you to estimate the potential of a product, project, or entire business. A financial model will take into account many relevant operational and financial variables, as well as growth and risk assumptions, to interpret their impact on the bottom line. This allows business leaders to better understand numerous factors that are critical to the underlying business endeavor’s success over time. In addition to financial forecasting, financial models can be used for risk management, operations management, and financial modeling in conjunction with corporate performance management.

This article explores several financial models you might use within your business and for clients, as well as how CFO support services can help your business grow.

Examples of Financial Models

What goes into a financial model depends on the business’s needs, but here are some commonly used financial models you’ll undoubtedly be familiar with.

Three-Statement Financial Model

Some of the most complex financial models use an income statement, balance sheet, and cash flow statement that are tied to supporting operational and financial schedules that show depreciation, debt, and working capital calculations.

All these elements are interconnected within the model, meaning any change is immediately reflected elsewhere. By adjusting independent inputs such as number of stores, number of employees per store, and average sales per employee, you’ll see how this affects your dependent output variables – such as total salaries, revenue, and rent. For example, adjusting the number of employees per store will change the total forecasted revenue based on that set of independent variables.

This can help business leaders better understand the optimum setup for a business. For instance, adding another store might initially seem like a great next move, but you may ultimately decide after making some calculations that the additional rent and salaries mean it’s not viable. Instead, the financial model might show that adding an employee at each existing store is a better strategy for increasing revenue without increasing the cost of rent.

Discounted Cash Flow Model

The discounted cash flow (DCF) model estimates an investment’s value and uses the “time value of money” concept. With the correct data, it could identify whether a company’s stock is over or undervalued and help determine the attractiveness of an investment opportunity.  However, this model could also help lay out different scenarios to help with business decision-making.

Leveraged Buyout Model

This model is specific to a leveraged buyout deal where a company acquires another using borrowed money. The model can help determine how the assets and operations of the acquitted company can pay off the borrowed debt and the profit that could be made after that.

These are just three examples of financial models, but they all serve a similar purpose: to provoke dialogue and help business leaders see what options lay ahead of them.

Getting the Right Support

Having the freedom to build your business starts with having the right support, whether that’s outsourced CFO services to ensure your financial models and those of your clients are up to date or bringing in people who can understand the insights contained within these models. If you’d like to streamline some of the services you provide to clients, here are some ways Analytix Solutions’ financial modeling services can support your efforts.

Cash Flow Projections

Whether you’re preparing for the coming year or are planning to present a new project to others in the business, a cash flow projection can give an overview of things to come. Analytix’s financial modeling services can support your operational efforts with cash flow forecasts ranging between one and 13 weeks that show cash inflows and outflows broken down by type.

Management Reports

When making decisions to grow a business, having the right information is critical. Analytix can create management reports to help your business better understand key trends. This can help you see areas for growth, ways to reduce costs, and how potential changes to the operations process and your business model could positively affect the bottom line.

Business Intelligence

Thanks to a suite of business intelligence (BI) tools like Power BI, Fathom, or Tableau, Analytix can help turn your company’s data into actionable insights. All businesses have an abundance of data, but often, the challenge involves translating it into something useful that can help with decision-making. When using these tools, raw data can often be transformed into stunning visuals that make it easy to understand trends, opportunities, and challenges.

This means you can take timely and definitive action based on your data and present it to others when pitching new ideas, seeking investments, or communicating internally.


By automating your business processes, your team can have more time to work on more complex projects and spend more time serving your clients’ higher-order business needs. Analytix uses Process Solutions in the Quickbase platform to streamline repetitive processes. For example, this could ensure that the right paperwork is automatically generated every time there’s a sale to ensure regulatory compliance.

Automating these processes keeps your accounting system up to date and reduces the chance of human error. Using outsourced CFO services in this way improves efficiency and accuracy.

These financial modeling services can support your business, thereby giving you the space to think more strategically about how your organization is growing. On top of this, CFO support services such as those provided by Analytix can also help you focus on your customers and increase the quality of the products and services you offer.

If you’d like to learn more, send us a message here or call us at 781-503-9002 today to schedule an appointment with one of our experts.

Written by

Analytix Editorial Team
Analytix Editorial Team

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