Collecting and using the right data sources in financial modeling is crucial to the success of a business. Financial modeling requires gathering and analyzing lots of information; the collection of data is a crucial step in creating a financial model. There is a wide range of data that must be used in a financial model. A company’s historical results are the key input to prepare a three-statement model, which is a setup for your financial model.
Management discussion and analysis from corporate filings, industry reports, and research reports of professional analysts are some of the resources that may improve the accuracy of your forecasting assumptions. Finally, you need to find the appropriate inputs for your valuation. Knowledge of relevant data sources is critical for an analyst to develop a precise and up-to-date model.