7 Common Financial Modeling Mistakes for Startups

1. Hardcoding projections and assumptions

2. Inconsistent Formatting

3. Syntax Errors

  • Mixing up positive and negative numbers in a cash flow statement
  • Forgetting or misplacing brackets. =A1+B1*360 does not equal =(A1+B1)*360
  • Naming cells and entering the wrong name. Try to avoid naming cells and keeps the default naming convention

4. Long and Other Avoidable Formulas

5. Avoid Daisy Chains

6. Naming Convention of Files

7. Incorrect Sums

Conclusion

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