From the course: Financial Modeling Foundations

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Maintaining ongoing financial models

Maintaining ongoing financial models - Microsoft Excel Tutorial

From the course: Financial Modeling Foundations

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Maintaining ongoing financial models

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- [Instructor] In addition to building new financial models, it's equally important to be able to go through and maintain existing financial models. Oftentimes, this includes the need to update the model as new results come in, and also to explain to management and other stakeholders what those new results mean compared to the projections we made in the model. I'm in the 08_04.Begin Excel file. Now what we have here is our three-statement model, where we've updated 2018 to include 2019 actuals, but we've left in the 2019 Estimates column. What we're essentially looking to do is go through and understand how our projections performed against what actually happened in the model. To do this, we've created a new column over here on the far-right, called the Variance to Plan. Variance to Plan simply refers to the difference between the actual results we achieved compared to what we planned to achieve or expected to achieve. These types of variances are very common for companies to examine…

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