Financial modeling is an essential part of every FP&A professional’s toolkit. However, building a robust and reliable one requires skill, experience, and attention to detail. This post will discuss five common mistakes to avoid when building financial models. The below is not an extensive list, but thinking through it before you start creating your next model will help you improve your work and better support the decision-making process within your business. Mistake #1: Overcomplicating the Model One of the most common mistakes in financial modeling is overcomplicating the model. I can’t even count the number of times I’ve found myself guilty of this. As a rule of thumb, financial models should be as simple as possible while capturing the essential information needed to make informed decisions. On the other hand, make a model too complicated, and it will be difficult to update, prone to errors, and will take you much