Financial Modeling Institute (FMI)’s Post

When it comes to financial modeling, there are two main approaches to tab structure: vertical and horizontal, while some people use a hybrid of the two. Ultimately, the choice of structure depends on the specific needs of the financial model and the preferences of the financial professional. - A vertical model refers to a model in which most of the schedules and financial statements are built on the same tab within the Excel file. - A horizontal model refers to a model in which most of the schedules and financial statements are built on different tabs within the Excel file. - A hybrid model refers to a model that is a blend of the previous two approaches. For instance, there could be one sheet with the financial statements, and another sheet with all the schedules. Regardless of the approach selected, it is important to use best practices and follow recommended tab structures to ensure a comprehensive and efficient modeling process. Like this post on Tab Structure? Let us know in the comments if you’d like to receive a PDF on Financial Model Best Practices. #excel #spreadsheets #financialmodeling