Financial Modeling
Prune’s financial models are designed to be highly customizable and capable of modeling anything you would usually use Excel for. Use it to model revenue, customize overhead per employee, calculate KPIs, and more.
Click on Models on the navigation bar on the left to access the Models feature.
Creating and Managing Models
Click on the models dropdown to:
Create a Model - Open the Models menu by clicking on Models on the top left of the models page. Then click on the + button to create a new model.
Switch between models - From the models dropdown, click on the new model to switch the view to that model.
Rename a Model - From the models dropdown, hover over the list of models and click on the 3 vertical dots on the right. Click “Rename Model” to replace the name.
Delete a Model - From the models dropdown, hover over the list of models and click on the 3 vertical dots on the right. Click “Delete Model” to delete that model.
Adjusting Model Date Range
Use the model date range to set the beginning and end date of your financial model. Each model has its own respective date range separate from the financial report date range.
Creating a Variable
Variables are time series. There are 3 types of variables:
- Inputs are the key drivers or assumptions of the company
- Formulas calculate the values.
- Outputs map the selected values to the financial report.
Built-In Prune Variables
You can reference pre-built variables from the Financial Report(account balance) or Hiring Plan(employee count, new hire, salary).
Variable Names Must Be Unique
Variable names of the same type must be unique across all models.The system will not allow you to create a variable with the same name.
Inputs
There are many types of inputs that are used for key assumptions and drivers. To create an input, click on + Add input under the Inputs section on the table.
Number
Number inputs are used for number formatted assumptions such as initial customer count.
Percentage
Percentage inputs are used for percentage assumptions such as monthly growth rate.
Currency
Currency inputs are used for assumptions with currency values associated to it such as monthly pricing.
Month
Month inputs are used for specific date assumptions such as Expected Fundraising Month.
Import
You can import data from a Google sheet and display them as inputs. To do this, click on Imports and connect your Google account. Select a spreadsheet and the named range. Note: make sure to set up the named range in your google spreadsheet first or it won’t show up. Select the start month and click Update Input to save it.
List
You can manually enter the value of each month with a list input. If you want to apply the same value for future months, click on the purple arrow. Some common assumptions with list variables are variable growth rates or keeping track of actual metrics.
Convert Inputs
You can convert an input by clicking on an input and selecting a different input type.
Formulas
Creating Formulas
To create a new formula, click on + Add formula under the Formulas section on the table.
Type Auto Detecting
As you are typing in the formula section, our system will start detecting a list of variables that match the text automatically. Click on the variable or press Enter key on your keyboard to select it.
Chips view
Click on Chips next to Formula to see the formula in layman terms.
Preview value
The value displayed is the result of the functions within the formula.
Time Segments
Time segments are useful if you want to use different functions for different time periods.
Add Time Segment
To add a new time segment, click on ”+ Add Time Segment” under the formula and it’ll display an additional time period. Customize the functions in each time segment (they should be different).
Adjust Time Segment
To adjust a time segment, click on the time segment bar on the table. Select the “Start” month based on when it should start and the “End” month based on when it should end. The time segments should be continuous and without any gaps or overlap.
Delete Time Segment
To delete a time segment, click on the time segment bar on the table. On the Edit Segment popup, click “Delete” on the bottom left to delete the segment. The deleted time segment will disappear and the functions will reference back to the model date range.
Referencing Variables
To reference a variable, start typing the variable name in the formula section and our system will start detecting a list of variables that match the text automatically. Click on the variable or press the Enter key to select it.
Self Referencing Variables
Each formula is a variable itself. You can reference any formula across any model in a form of a variable. If you reference itself as a variable, it will automatically set the range of the self variable to be [x-1], the previous month’s value.
Referencing a Hiring Plan Row
You can reference variables from the hiring plan row for both employees and contractors.
Employees - employee count, new hire, and total base salary
Contractors - contractor count, contractor new hire, contractor(department) for the costs.
You can also filter it by department or role.
Referencing a Financial Report Row
You can reference variables from your financial model for both actuals and forecasts. Simply type Account Balance and its category. Use x - (n) to reference past actuals and use x + (n) in the range to reference future forecasts.
Variable Offset
The (x) in the formula represents the variable’s value in the current month.
Actuals - Use x - (n) if you want to reference previous months. For example, x - 1 represents the variable’s value one month ago and x - 2 represents the variable’s value 2 months ago.
Forecasts - Use x + (n) if you want to reference future months. For example, x + 1 represents the variable’s value next month and x + 2 represents the variable’s value in 2 months.
Outputs
After you’re done setting up the formulas, create an output to map the formula’s value to the financial report.
To create a new output, click on + Add output under the Outputs section on the table.
Select the source formula you want to reference and then select the output (ledger account) you want to map to on the Financial Report.
Deleting Outputs on Models
If you no longer want the output value to display on the financial report, simply delete the output by going to the Model > click on the output > click Delete output.