Building financial models involves creating a representation of an organization’s future performance, typically in the form of spreadsheets or financial statements. Model makers attempt to capture the effects of certain decisions or events on the financial position and performance of the organization. This usually includes projecting income, expenses, cash flows, balance sheets and other financial scenarios over a forecasted period of time. Model building also provides a means of forecasting the financial impacts of new products and services as well as assessing existing ones. By creating these models, organizations can plan ahead and strategize for the most beneficial outcome possible.