5 Questions Every Financial Modeler Should Be Asking

If you are a financial modeler, you likely spend your time planning the future of your business. You test scenarios and build forecasts to help you determine the best path forward. The models you create develop the basis for many of your business decisions.

If you are using a traditional spreadsheet to create your models, there are a few important questions you need to ask:

Can I audit each of my formulas for accuracy?

Although it might seem obvious, it’s crucial for you to understand all of your formulas and the reasoning for each. The larger your model gets and the more you expand your calculations, the more room there is for error. In many cases, growing your model with a traditional spreadsheet requires you to copy and paste or drag your calculations.  Once calculated, the formulas hide in each cell. One small issue could impact the accuracy of the entire model.

Can I update my model at a moment’s notice?

Let’s say your business decides to start selling a new product. Would you be able to easily update your model accordingly? You could go a step further – what if your company wanted to sell in a new region? Could you make those edits quickly and easily… without error? You should be able to add these types of categories without breaking the structure of your existing model and without worrying about the validity of your calculations.

Is the size of my model impacting my performance?

Not surprisingly, if your model contains large amounts of data and calculations, it may take a while for it to process and update. In some cases, financial modelers run the calculations and wait hours or days for the process to complete – or even fail to complete. Traditional spreadsheets are not designed to handle these types of scenarios. If you’re experiencing delays or failed calculations, you may need a financial modeling tool.

Is the structure of my model easy to comprehend?

In most cases, the financial models that you create are designed to be shared – or at least the findings within need to be shared. If you work in the finance department of your company, management will want to review what you’ve created. If you are a consultant, your clients will want access to your findings.  As a result, the structure of your data must be clear to others. If you’re the only one who understands the model, it could become an issue.

Is there only one version of the truth for my model?

Inevitably, over time your model changes.  Not only will you continue to make adjustments, but there is also a chance that others will make edits, suggestions, or revisions. This results in different versions of the same model.  Even if you believe you have the most recent copy, are you confident that you know all of the changes that have been made?


Solution: A Financial Modeling Tool

If you struggled to think about any of these questions or are unsure about how you would answer them, you may be a great candidate for financial modeling software.

Let’s look at some of the features in Quantrix and how they resolve each issue.

Natural Language Formulas:

Unlike traditional spreadsheets, Quantrix allows you to write formulas in natural language. So, instead of = B25 – C25, start writing Gross Profit = Revenue – COGS. With this method, you won’t need as many formulas, and it will be much easier to audit each.

Separate Structure from Logic:

Updating your models shouldn’t be headache. In Quantrix, the structure of your model is separated from your formulas. That means, you can add new scenarios, products and regions with one click – and the formulas still work!

Easy Model Scaling:

Continue to build your model without the need to add more formulas.  Even if you add new categories, the formulas don’t break. Without excess calculations, you’re able to do more.

Easy Organization:

With Quantrix, you can organize your data with ease. The product offers a model browser so you can place all your matrices into folders. Further, because the structure is separated from the logic, you can easily pivot and filter the data to view it in the most comprehensible way.

Sharing with permissions:

A major concern for many financial analysts and planners is maintaining model integrity when sharing their content. They want to ensure their formulas and structure remain intact while others review it. With Quantrix, you can set permissions for different users.  This added level of security allows the model owner to limit what others are able to change within a model. Quantrix also enables you to share your models online with our Qloud offering so key stakeholders can review the content from their browser.

Audit Trail – Quantrix also has a featured called the Audit Trial, which (when turned on) will record all the changes made to the model.



If you are a financial modeler, you have an important role in your organization. The forecasts and plans you create guide your business into the future. We wanted to share 5 important questions we thought were valuable in ensuring that your decisions are made with the best and most accurate data available.

If you want to learn more about Quantrix, please reach out to us. We would love to hear about your business and use case!


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