A well-structured financial model is essential for clarity, efficiency, and decision-making.

Below is a recommended structure for organizing your financial model, including the main steps and spreadsheets (tabs) to include.

This approach reflects best practices and your preference for having the summary at the front and all inputs at the end of the list.

1. Cover Page

  • Start with a professional cover page.
  • Include the model name, version, date, author, and a brief description or disclaimer.
  • This sets the context and provides key reference information for users​.

2. Summary / Dashboard

  • Place the summary or dashboard as the first tab after the cover page.
  • This sheet should present key outputs, charts, and high-level insights.
  • Make it user-friendly for quick decision-making, with visualizations and concise tables

3. Model Audit & Validation Checks

  • Include a dedicated tab for model integrity checks.
  • Use this sheet to highlight errors, inconsistencies, or broken links.
  • This ensures the model is robust and reliable, and facilitates easier auditing

4. Financial Statements (Three-Statement Model)

  • Organize your core financial statements in the following order:
  • Income Statement (Profit & Loss)
  • Balance Sheet
  • Cash Flow Statement
  • These should be linked so that changes in one flow through to the others, maintaining consistency

5. Supporting Schedules

  • Add separate tabs for detailed schedules that feed into your financial statements, such as:
  • Revenue and Cost Schedules
  • Depreciation & Amortization
  • Working Capital
  • Debt & Interest
  • Equity and Capex
  • These schedules provide the detailed calculations behind the main statements

6. Valuation and Scenario Analysis

  • If applicable, include tabs for valuation models (e.g., DCF, LBO) and scenario/sensitivity analysis.
  • Scenario analysis allows users to test different assumptions and see their impact on outputs

7. Historical Data

  • Maintain a tab for historical financial data and key metrics.
  • This provides context and a foundation for your projections​1​​6​.

8. Assumptions & Inputs (at the END)

  • Place all input and assumption sheets at the end of your tab list, as per your preference.
  • Clearly separate assumptions from calculations and outputs.
  • Use color-coding or formatting to distinguish input cells, making it easy for users to update key drivers without touching formulas.

“Group the inputs (i.e., the assumptions) that drive the financial model together in one section. Nearly every financial modeling expert recommends a standard that isolates all of the model’s hard-coded assumptions in one clearly defined section of a model, typically on a dedicated tab called ‘Inputs’.”

Key Best Practices

  • Logical Flow: Arrange sheets so users can move from summary outputs to detailed calculations, ending with inputs
  • Consistency: Use clear, consistent formatting and color-coding for inputs, calculations, and outputs
  • Separation of Inputs: Keep all hard-coded assumptions isolated to prevent accidental changes and improve transparency
  • Validation: Include robust error checks and an audit trail to ensure reliability
  • Documentation: Add brief instructions or comments where necessary for user guidance.

By following this structure, your financial model will be organized, transparent, and user-friendly-making it easier for stakeholders to understand and trust theresults.

With the summary at the front and all inputs at the end, users can quickly access both high-level insights and detailed assumptions as needed.