The process of financial Modeling is the method that creates a structured description of the financial performance of a business for analyzing future results. It aids investors, companies and financial analysts analyze the profitability of their business, predict growth and take data-driven decision making. With the help of the assumptions of previous data and trends in the market and financial models, they provide insight into the valuation of companies, opportunities for investment and risk analysis. For mergers, budgeting, acquisitions or the planning of capital the financial model is an important tool in contemporary finance. It provides certainty and clarity in making strategic choices.