Linked Three-Statement Financial Model
Build a linked income statement, balance sheet, and cash flow forecast with formula maps and reconciliation checks.
Before & after
Same prompt, same agent — the only difference is the skill.
Building a three-statement financial model is a great way to project your financial future. I can walk you through what goes into the income statement, balance sheet, and cash flow statement, and explain how they connect. Once you give me your assumptions about revenue, operating expenses, and growth rates, I can help you set up the structure. What's your current revenue run rate and what expenses do you have?
FINANCIAL MODEL: 5-YEAR FORECAST MODEL STRUCTURE Linked three-statement model with automatic cross-flows: • Income Statement (P&L) → Balance Sheet → Cash Flow • Formula validation: Assets = Liabilities + Equity • Circular reference check on loan interest and debt service KEY ASSUMPTIONS Revenue Drivers: Year 1: $800k (current run rate) Annual growth: 50% years 1-2, 35% years 3-4, 25% year 5 Customer growth: 20% annual (year 1-3), 15% (years 4-5) Average revenue per account: $12k (grows 5% annually) Operating Expenses: Headcount: 8 people year 1, scaling to 22 by year 5 Payroll growth: 8% annual (raises + new hires) Fixed costs: Rent $4k/mo, tools $2k/mo, insurance $1.5k/mo Variable costs (COGS): 18% of revenue Cash Assumptions: Capital expenditure: $20k year 1, $15k years 2-5 (equipment) Working capital: 30-day payable period, 10-day receivables Tax rate: 21% (federal corporate) PROJECTED FINANCIALS (Year 5) Revenue: $4.82M Gross Profit: $3.95M (81.9% margin) Operating Expenses: $2.80M Net Income: $1.15M (23.8% margin) Cash Position: $3.22M (accumulated) RISK FACTORS Cash flow tightest in year 2 (heavy hiring) Cash balance low point: $180k (month 18) Mitigation: Plan raise of $500k before month 12 CRITICAL METRICS TRACKED Burn rate (if needed): Calculated monthly Cash runway: 28 months at current burn Customer payback period: 11 months (improving to 6 by year 5) Debt service coverage: Positive from year 2 onward BUILT-IN CHECKS • Balance sheet balances formula for all 60 months • Interest calculations auto-flow to P&L and cash flow • Depreciation schedules linked across statements • Quarterly variance analysis template included DELIVERABLE: Google Sheets template + instruction guide MODIFICABLE ASSUMPTIONS: Revenue growth, headcount plan, expenses by category FORMULA TRANSPARENCY: Every cell shows calculation
About this skill
Your profit forecast looks fine, but cash goes negative and the balance sheet needs another manual fix. Build an integrated model that explains those movements through revenue drivers, working capital, capital spending, and financing, with formulas that connect all three statements.
What it does
- Converts operating assumptions into a forecast income statement, balance sheet, and indirect cash flow statement.
- Builds working capital, fixed asset, debt, tax, and equity schedules where the business requires them.
- Supplies spreadsheet formulas with explicit period references, sign conventions, and source links.
- Traces balance sheet differences to their causes without hiding them in cash or other accounts.
- Tests assumption changes through earnings, cash, debt, and equity, including unfunded cash shortfalls.
- Separates confirmed inputs, provisional assumptions, calculated results, and unverified checks.
What you get
A model specification, spreadsheet-ready statement layout and formula map, linked forecast results where inputs permit, and a reconciliation checklist. For an existing model, get a targeted diagnosis and corrected formulas instead of an unnecessary rebuild.
Best for
Founders, FP&A analysts, and finance teams building an operating forecast or repairing a model whose statements stop agreeing when assumptions change.
SKILL.md preview
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name: linked-three-statement-financial-model
description: Builds or repairs an integrated income statement, balance sheet, and cash flow forecast using operating drivers, supporting roll-forwards, explicit spreadsheet formulas, and reconciliation tests. Use when the user says "build a three-statement model", "link my financial statements", "my balance sheet won't balance", "profit is up but cash keeps falling", "forecast capex and debt", "make this model respond to assumptions", or "check these financial model formulas".
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# Linked Three-Statement Financial Model
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