Building financial models is a process of creating complex mathematical representations of a company’s financial situation. These models are used to analyze financial performance and predict future scenarios. They help businesses understand how certain factors like cash flow, profits, losses, and unemployment rates can influence their bottom line. Financial models are critical tools for making informed business decisions and should be regularly updated to ensure accuracy. With the right set of data and expertise, any organization can benefit from creating a financial model to maximize their chances of success.