Prepare for Handoff.

Once a model is finished, we need to prepare for handing it over to another colleague. First of all, we need to check that the output looks reasonable based on the assumptions. So for example, if sales have been forecast to go up by 5% every year, then why is net income going down every year? We need to check that our assumptions and our outputs make sense. Next up, ensure consistency of formatting. If you've got a cell with formulas in it, then that should be shown in black text. If you've got a cell with hard-coded inputs in it, then that should be shown in blue text. Also, before handing over your model, you should remove any cell highlights created during the model build. Although it's really useful to highlight cells as you're building the model, it doesn't look very professional for someone reviewing it. Is the layout intuitive? Some people like to put all their assumptions together and some people like to put the income statements assumptions with the income statement, the balance sheet assumptions with the balance sheet, et cetera. Whatever layout you've decided on, have you used it consistently, and does the flow of the model follow the flow of the model build? Usually that's the income statement, then the balance sheet, then the cash flow statement. Next up, are complex calculations broken down into steps? We don't want formulas with hundreds of characters in 'cause that makes it really tricky for someone to review and also harder for us to find errors. It's much better to break down those calculations into individual steps. Next, is the model documented where necessary? If there are any unusual trends in the assumptions or the historical numbers, these should be annotated so that anyone reviewing your model understands the disruption in the trends and can see that they're not errors. Next up, is the circular switch on, and are iterations on? Remember that someone reviewing your model will assume that the model is completely finished and will expect to see interest in the income statement. So you must have iterations on and the circular switch on for your model to be complete and showing the final outputs. And lastly, is the model beauty saved? This means pressing Control + Home on every sheet, and then Control + Page Up to scroll to the front tab of the workbook before saving. This means when someone else opens up your model, it will open on the cover page of your workbook and in the top left-hand corner of every sheet. This is a great habit to get into and makes your model look much more professional. Once you finish these steps, you're ready to hand over your model.