Visualize Financial Statement with Dynamic Charts

Description
One of the pillars of standards financial modelling is user friendliness. Neglecting usability or user friendliness in a financial model is a costly mistake. A financial model should be easy to read and manipulate for users.

You need to include tools which enable easy understanding of the model results. Therefore it is recommended to include a summary tab when you are designing your spreadsheet. The summary tab should contain the summary of the most important highlights of the model.

One of the important outputs of a financial model is a projected financial statement. Namely Cash flow statement, Profit and loss statement and balance sheet. So it’s useful to include the key lines of these 3 statements somewhere in your summary tab under “Summary Financial statements”. To even make it visual, you can easily integrate a dynamic chart and with a drop-down list, then you can simply switch between different items of the 3 statements.

The Excel template contains an example of a flexible and dynamic chart for the visualization of the financial statements.

In the manual the steps on how to make a flexible chart using drop-down list and index function is explained. The methodology is explained in an easy, step-by-step approach so that anyone can follow and duplicate the work in their own spreadsheet.