Financial Model
Definition
A quantitative representation of a company's financial performance, position, and projections, built from documented assumptions and operational drivers. A financial model is the computational layer of financial infrastructure. For the purposes of the FFI Standard, an investor-grade financial model is one that is fully integrated across all three financial statements, contains a documented assumption layer, covers a minimum forward period, and produces a balance sheet that balances in all periods.
Common Misapplication
The most common misapplication is treating a revenue projection with a cost model attached as a financial model. A revenue projection and cost model that lack a cash flow statement, a balance sheet, and dynamic integration between all three components is not a financial model in the sense required by this Standard.
FFI Standard Reference
This term is defined and applied in Book 1, Section 1.1: The Three-Statement Standard.
Related Terms
Citable URL
This term may be cited using the following permanent URL.
Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Financial Model. https://ffistandard.org/glossary/financial-model/. 2026.