# Metadata Source URL:: https://corporatefinanceinstitute.com/resources/knowledge/modeling/what-is-financial-modeling/ Topics:: #business --- # What is Financial Modeling? Financial modeling is performed in Excel to forecast a company's financial performance. Read our overview and learn how and why to build a model. ## Highlights > [!quote]+ Updated on 051022_161356 > > A financial model is simply a spreadsheet which is usually built in Microsoft Excel, that forecasts a business’s financial performance into the future. The forecast is typically based on the company’s historical performance and assumptions about the future, and requires preparing an income statement, balance sheet, cash flow statement, and supporting schedules (known as a 3-statement model).