Guidelines for Creating an Effective Financial Model
“Rules of Thumb”
Documentation
Ensure the model has adequate documentation so that it can be easily modified later. The documentation would help in understanding the design and structure of the model and would be particularly useful when the model is required to be operated by a person other than the person who has developed it. Every financial model would have multiple worksheets and calculations. To help users understand the model, one can put a schematic diagram on the front sheet of the model for describing the various sheets and indicating how they interact with each other. One can also use hyperlinks to the relevant modules, thereby making the first sheet as a navigational tool, ...
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