Three Statement Model Builder

The problem

Building integrated financial models is error-prone. A single disconnected cell or missing interest flow causes the balance sheet to break, forcing hours of manual debugging.

What it does

• Generates integrated three-statement models (IS, BS, CFS) that maintain the accounting identity: Assets = Liabilities + Equity.
• Calculates working capital schedules using DSO, DPO, and inventory turnover drivers.
• Builds debt schedules with automated interest expense and repayment logic.
• Produces the Indirect Method Cash Flow statement, reconciling net income to ending cash.
• Includes a balance check mechanism to verify model integrity across every period.

Frameworks & tools

Python (Pandas), Microsoft Excel, and Google Sheets.

Why this beats prompting it yourself

Generic prompts often forget the circularity of interest or fail to bridge net income to the balance sheet correctly. This skill enforces specific accounting procedures and verification checks that ensure the model stays balanced across multiple years.

Use cases

• Creating five-year fundraising projections for VC pitches.
• Building annual budget cycles with dynamic revenue and cost drivers.
• Running M&A pro forma scenarios to see the impact of debt on cash flow.
• Testing loan covenant compliance under different growth assumptions.

Known limitations

This is a forecasting tool, not a replacement for accounting software or tax compliance filings. It requires a baseline set of opening balances and assumptions to function.