Why do financial models become more complex? Have you come across the situation where after doing the complex calculations you realize that it is of no use? Should you include everything all kinds calculations, balance, permutation / combinations without knowing the end goal of the model?

A financial model is a tool to put theories/predictions to test, a financial simulation to measure suitability of a transaction or a reporting tool to get insights into business performance.

Fred is an enthusiastic young individual, having sound knowledge of excel has been working on his first few modelling projects for couple of months now.