how is a financial model validated 
errors in financial modeling can cause expensive mistakes for this reason a financial model may be sent to an outside party to validate the information it contains banks and other financial institutions project promoters corporations seeking funds equity houses and others may request model validation to reassure the end user that the calculations and assumptions within the model are correct and that the results produced by the model are reliable the bottom linefinancial modeling is a set of numerical techniques used to forecast a company s future growth based on the information in a company s income statement balance sheet and estimates of future economic conditions analysts can create sophisticated projections of an investment s future performance 