FREE WORKBOOK
Three-Statement Financial Model
P&L, balance sheet and cash flow, twelve months across and properly linked, so the balance sheet balances by construction and a check row proves it.
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Who this workbook is for
Anyone whose model is really three separate spreadsheets
A P&L here, a cash forecast there, a balance sheet nobody updates. In this model they are one machine: cash on the balance sheet is the cash flow’s closing balance, retained earnings roll up each month’s profit, and the check row along the bottom is zero for any assumptions you enter. If it ever is not, the model is broken and says so.
Anyone whose profit and cash tell different stories
The demo year turns £282,901 of profit after tax into £330,048 of cash, and the cash flow sheet itemises the gap: £94,300 of corporation tax accrued but not due for nine months, less the working capital that growth absorbs. A model that cannot explain its own gap between profit and cash is a drawing, not a model.
Anyone about to face a lender or an investor
Diligence reads the model before it reads the deck, and the first thing it tests is whether the statements link. This one is driven from a single assumptions sheet, clients, fee, growth, margin, debtor days, so every number can explain where it came from, which is the whole test.
