Historical financial data

Once you have the template in place, the next step is to obtain historical financials. With historical data, we are interested in the balance sheet, profit and loss account, and cash flow statement. It is common, in the course of preparing financial statements, to have a number of initial drafts which may have content that will been superseded when the final statements are agreed. Ensure that the financials you are given are the final audited financial statements. The more information you have, the more accurate your projections. However, you must not get carried away, as too much information will make the model unnecessarily cumbersome. Generally, historical data is limited to five years, with another five years of projected financials. Try to get soft copies of the historical financials in Excel readable format, as this will significantly reduce the...