In the current competitive scenario, small or medium enterprises (SMEs) face several challenges on a daily basis when it comes to making financial decisions. Whether it is the lack of resources and time, the need to improve the accuracy of their financial forecasts or the lack of understanding of the tools in place, several factors affect the quality of decision-making in business.
Going for external expertise could be the solution to take your business to the next level. Choose a more economical and efficient option to take control of your finances with the Cofinia experts!
Financial modeling is a tool developed to better understand and manage the different financial situations that a company has faced over the years. Financial modeling is used to predict the future financial performance of a company and the evolution of its financial statements: income statement, balance sheet and cash flow. The forecasts are based on current data (such as financial data) and historical data of the company and take into account different assumptions and scenarios in order to draw a realistic portrait.
Financial modeling is also used to simulate various market phenomena to help asset portfolio management and thus to carry out strategic planning in different departments of the company. You will also be able to do predictive analysis and better calculate your annual budget or your advertising budget depending on what you choose to study.
Cofinia’s financial modeling helps you make better operational decisions for your Small and Medium Enterprise: Find out how our team can help you!
The use of financial modeling and its implementation offers you several possibilities:
Model development and the creation of financial models are elements that any company should incorporate into its financial strategy in order to improve decision-making. Through simulations and sensitivity studies, Cofinia’s financial modeling can help you better understand your SME and its specific needs. The flexibility and customization of financial modeling opens several doors: cash management, dashboard, performance indicators and much more.
Cofinia builds tailor-made financial models specifically adapted to your business model and your industry. With over 20 years of entrepreneurial experience, our financial modeling services are flexible and accurate. Our goal is to support you in the growth of your business by optimizing your financial strategy through informed decision-making.
Financial modeling offers the possibility of analyzing several scenarios, identifying potential risks and opportunities, and adapting the management of your business accordingly. These scenarios can be based on different factors to understand the impact: variations in your production costs, price changes by your suppliers and even regulatory changes.
There is always the option of purchasing financial simulation software and trying to model your business finances yourself. However, it is both an expensive and time-consuming option to integrate into your operations.
Quality modeling software is a big investment for SMEs. This decision also implies that you will have to develop internal expertise for this financial projection software, which means a lot of training and a delay before you can use it to its full potential and ensure model consistency. Cofinia’s services are much less expensive, offer reliable results quickly and allow you to focus on your most important operations!
Cofinia’s financial services for SMEs
When you do business with Cofinia, you can be sure of a complete service that goes beyond the request. We are present throughout the entire process of the service to bring you the advantages of a professional financial model. Cofinia offers multiple advantages for Quebec SMEs, such as:
Take control of your company’s finances and operations thanks to the models developed by Cofinia experts! Reducing uncertainty during your strategic decisions and understanding the impact of different factors on your accounting and financial results will inevitably push you towards success!
A financial projection measures the performance of your business in a given future in order to estimate your performance and your need for financing. It is a static picture of your business in the future that can be used for strategic decisions.
A financial projection differs from financial modeling by its dynamic aspect! Financial modeling offers businesses the ability to analyze multiple scenarios and the impact of different factors in a flexible model. A modeling takes into account elements external to the company such as the evolution of the economy, the industry and your competitors.
There’s no limit to the number of scenarios you can model: hundreds of factors can impact your business and its finances. These also vary by type and size of business, as well as the industry in which it operates. Two companies with similar scenarios can have very different models!
However, Cofinia recommends including three basic scenarios in your financial modelling: the optimistic scenario, the pessimistic scenario and the best scenario. These will allow your company to adequately prepare its financing and mitigate many more risks. These reduce uncertainty and allow better organization of your operations and resources!
We know that financial modeling is an excellent tool for decision-making, thanks to the analysis of different scenarios, your financing needs and the impact of key factors on your business. But under what circumstances do we recommend that you create a financial model?
