Financial Model Template: The Benefits Of Using One

Jerusha Songate on May 12, 2021

A financial model template is a helpful way to see into the future. By using a well-developed one, you can develop multiple scenarios, including best and worst-case projections, so your financial plan will allow for whatever the financial year brings.

In The SaaS Financial Model You’ll Actually Use, you learn about the many features of our model. The blog article explains different scenarios, forecasting models, and operating models. We’ve also added more features to the template to make it more effective. 

What is a Financial Model Template?

A financial model uses proven principles to forecast your company’s financial situation.

When you build a model, you consider your company’s financial history and make assumptions about its future. The model requires preparing financial documents, including an income statement, balance sheet, cash flow statement, and other vital financial statements.

You may also use more sophisticated models for leveraged buyouts data, discounted cash flow (DCF model) analysis, customer acquisition costs (CAC), cost of goods sold (COGS), and other more complex financial situations as the need arises. 

A financial model template simplifies this process by allowing you to fill in predetermined fields to produce an effective forecast. Using the template can save you hours, while making sure you produce an accurate model.

Our product is more than a Microsoft Excel spreadsheet or a customized Google sheet. It is an advanced and flexible tool that works for your company’s unique situation.

The Baremetrics template can help you create advanced financial models for your company and simplify your financial analysis.

Learn how by signing up for our 14-day free trial.

Benefits of Using a Financial Model Template

Speed and simplicity aren’t the only benefits of using a financial model template.

When you use Baremetric’s template, you can turn your financial statements into a comprehensive picture of your current and future finances while allowing for common and uncommon variables. 

Typically, your company will need four different models: 

  • Operating Model – Monthly view of profit and loss, cash flow statements, and balance sheets.
  • Forecasting Model – Used to predict areas of your business including revenue, payroll, and sales forecasts.
  • Reporting Model – Pulls data from the other models to create easy-to-understand reports, including budgeting and pricing concerns. Allows monitoring of KPIs. 
  • Data Export (Actuals) – Pulls data from accounting, billing, and analytics into other tabs.

When you use the Baremetrics template, you do not have to recreate your excel spreadsheet for each model since it is modular. You simply customize the template for your use. 

The Baremetrics template gives you the flexibility your company needs for its financial data. Its step-by-step structure conquers the complexities of corporate finance. Enjoy our 14-day free trial and see how it will work for you.

Baremetrics Template gives you the Financial Data your company needs

Get deep insights into MRR, churn, LTV and more to grow your business

The Updated Financial Model Template

No financial tool can be one and done. All templates need to be regularly updated to reflect current market realities. You need reliable financial projections to create a solid business plan.

The latest updates to the Baremetrics template lets you do the following:

1. Create Meaningful Financial Scenarios

Our new updated template allows you to create multiple scenarios for your company’s financial future. You can include variables that account for your best case and worst case marketplace performance.

To be an effective leader, you need to know what could happen. Financial modeling gives you a look at what the future could hold. 

2. Compare Forecasts to Actuals

You can also compare your scenarios with actuals after the fact to see where your predictions were accurate and inaccurate. Doing so allows you to spot weaknesses and strengths in your company’s production, sales, staff retention, etc.

This way, you can improve your current business plan with enhanced financial planning and get insights into everything from working capital and present value to fundraising and e-commerce performance. 

3. Loan Calculations

Loans are a basic reality in business, even if you’d prefer to operate without them. The updated template has a loan calculator that includes draws, principal repayments, interest, and possible loan forgiveness.

Bank loans are often a way to enhance the growth rate of your startup or established company as opposed to being a sign of trouble. 

How Baremetrics Can Help

Baremetrics gives you the tools you need to stay ahead of the game, including metrics, dunning and engagement tools for SaaS and subscription tools.

You will no longer spend hours juggling multiple data worksheets and struggling to fit in real estate depreciation and valuation fields along with other information. Instead, you can use our template to combine everything in one spot. 

With Baremetrics, you get the latest in smart dashboards and recovery tools. Start your free 14-day trial today, and experience the many benefits that we provide.  

Jerusha Songate

Jerusha has a strong interest in SaaS and finding new business opportunities. She writes for Baremetrics as part of her passion for business journalism.