What is a financial model and why does it matter?

A financial model is a structured forecast — typically in Excel — that links your P&L, balance sheet and cash flow so revenue, cost, working capital and funding assumptions flow consistently. It matters because investors, lenders and boards use it to test runway, unit economics and the credibility of your plan.

When do I need a financial model?

Most founders need one before a fundraise (angel, seed, Series A), when applying for bank or NBFC debt, when preparing the annual budget and board pack, and when evaluating a major decision such as a new product line, geography or acquisition.

What is the difference between a three-statement model and a forecast?

A simple forecast usually projects revenue and a P&L only. A three-statement model links P&L, balance sheet and cash flow so working capital, capex, debt and equity are reconciled — which is what investors and lenders actually diligence.

Will the model include scenarios and unit economics?

Yes. Every model we build includes base, upside and downside scenarios driven by key assumptions, plus unit economics (CAC, LTV, payback, contribution margin) and cohort behaviour where data is available.

Financial Modeling

Relevant for:For Startups For SMEs

Financial Modeling Services for Startups & SMEs

A financial model is a linked forecast of your P&L, balance sheet and cash flow that lets investors, lenders and your board stress-test the plan. We build investor-ready, three-statement models with scenarios and unit economics — for fundraising, board reporting, banking and operating planning.

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What's Included

Three-statement model — P&L, balance sheet and cash flow (3 to 5 years)

Revenue build by segment, channel and pricing tier

Unit economics — CAC, LTV, payback, contribution margin

Cohort analysis and retention modelling where data is available

Scenario and sensitivity analysis (base, upside, downside)

Fundraising / runway model — burn, months of runway, funding ask

Working capital, capex and debt schedules linked to the operating plan

Dashboard summary view designed for investor and board sharing

Our Process

STEP 1

Discovery

Understand the business, decision the model must support, and existing data.

Week 1

STEP 2

Assumptions & structure

Agree the assumption set, model architecture and scenario logic.

Week 1

STEP 3

Build

Build the three-statement model with revenue, cost, working capital, capex and funding schedules.

Week 2

STEP 4

Review & scenarios

Layer in scenarios, sensitivities and unit economics; founder walkthrough.

Week 2–3

STEP 5

Handover

Deliver Excel model, assumptions log and dashboard; investor / board Q&A support.

Week 3

Documents Required

Last 2–3 years of audited financials and management accounts
Current pricing, customer and revenue data
Headcount plan and major cost line detail
Existing budget or board deck (if any)
Cap table and outstanding debt / convertibles

Monthly on LinkedIn

The CFO Desk

One finance problem a month for SME owners, and for Gulf and overseas owners running teams in India, with what fixes it.

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Frequently Asked Questions

Related Services

Investor Readiness Virtual CFO Business Valuation

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Scope of services and important information

This page describes services offered by RTA & Associates, Chartered Accountants. It is published for general information and does not constitute tax, legal, financial or investment advice, nor an offer or solicitation to provide services in any jurisdiction where we are not qualified to do so.

Any engagement is governed by a separate written engagement letter, which sets out the scope of work, the deliverables, the fees and the limits of our responsibility. Nothing on this page forms part of that engagement or varies its terms.

Descriptions of timelines, processes, costs and outcomes are indicative and depend on your specific circumstances and on third parties — regulators, exchanges, banks and counterparties — whose timelines we do not control. Statutory and regulatory requirements change; the current position should be confirmed before you act.

We are Chartered Accountants. Where a matter requires legal advice, advice on the law of a country other than India, or a regulated investment recommendation, we will say so and you should take advice from an appropriately qualified and licensed adviser in the relevant field and jurisdiction.