Distinguish Input, Processing, and Output Cells

This video covers the following learning objectives:

• Conceptual Clarity

  • Define input, processing, and output cells in the context of financial modelling

  • Use analogies (e.g., a machine’s workflow) to reinforce understanding

• Practical Application

  • Show a simplified revenue forecast model with input, formula, and result distinctions

  • Describe how outputs are calculated from processing logic built on inputs

• Formatting Conventions

  • Introduce professional formatting (blue font for inputs, black for processing, bold/green for outputs)

  • Emphasize the importance of visual consistency for auditability

• Best Practices

  • Recommend isolating inputs on a dedicated assumptions tab

  • Encourage breaking complex calculations into intermediate processing steps

  • Suggest placing outputs on summary or dashboard sheets

• Common Mistakes

  • Highlight structural issues like mixing inputs with calculations or hardcoding values

  • Show how these mistakes hinder model clarity and usability

• Model Structure Visualization

  • Provide a mini layout (input → process → output) for reference

  • Promote building models that flow logically and are easy to audit

• Professional Habits

  • Encourage labeling, documentation, and building with user handoff in mind