> For the complete documentation index, see [llms.txt](https://help.modelreef.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.modelreef.io/help/getting-started/what-is-model-reef.md).

# What Is Model Reef?

Model Reef is a driver based financial modelling platform that builds full three statement forecasts and valuations without spreadsheets.

Instead of writing cell formulas in Excel, you describe how the business behaves using structured inputs:

* **Variables** for things like revenue, costs, staff, assets, loans and tax.
* **Drivers** for volumes, prices, growth rates, seasonality and other assumptions.
* **Timing rules** for when cash actually moves.
* **Branches** for divisions, entities, stores, projects or business units.

Model Reef turns those assumptions into:

* Profit and Loss statement
* Balance Sheet
* Cashflow Statement
* Cashflow Waterfall
* Valuation metrics such as NPV, IRR and money multiple
* Dashboards, charts and custom reports

It is designed so you can go from raw data to a working model in minutes, then spend your time on assumptions and scenarios, not formula maintenance.

## Who Model Reef is for

Model Reef is designed for people who need robust forward looking models, but do not want to hand build and maintain large spreadsheets.

Typical users include:

* **Finance teams and CFOs** building budgets, forecasts and cashflow plans.
* **Advisors and accountants** preparing models for clients or transactions.
* **Investors and analysts** evaluating deals, portfolios and funds.
* **Operators and founders** wanting a clearer view of runway, margins and unit economics.

If your work involves building, reading or relying on three statement models, Model Reef is designed to help.

## What problem Model Reef solves

Traditional spreadsheet models are powerful but fragile.

* Every new line needs a formula copied across hundreds of columns.
* Timing and accrual logic can be inconsistent between sheets.
* Small errors can silently break statements or valuation outputs.
* Scenario work often means duplicating entire files.

Model Reef replaces this with a rules based engine:

* You define a variable once (for example a loan, a hire, a product line).
* You give it amounts, timing, type and other settings.
* The platform automatically sends its effects to P\&L, Balance Sheet and Cashflow.
* The Balance Sheet always balances by construction.

You focus on what should happen in the business. Model Reef handles how the accounting flows through the model.

## How Model Reef works at a high level

You can think of Model Reef in three layers.

{% stepper %}
{% step %}

#### Inputs and structure

These are the building blocks of a model:

* **Workspace** - a container for related models.
* **Model** - a single forecasting and valuation engine with its own time range and currency.
* **Branches** - the internal structure of the model (entities, divisions, stores, projects).
* **Variables** - atomic model elements such as revenue lines, cost lines, staff, assets, loans and equity.
* **Drivers** - reusable time series such as volumes, prices, growth, seasonality and FX.
* **Data Library** - the central store of imported series and reusable drivers.

You can import data from PDF, Excel, CSV, accounting systems and external data sources, or build assumptions directly in the platform.
{% endstep %}

{% step %}

#### Accounting and timing engine

Model Reef uses a period based engine that:

* Recognises revenue and costs when they occur (accrual basis).
* Applies delays and payment terms to determine when cash moves.
* Creates receivables and payables to bridge between accrual and cash.
* Tracks assets, depreciation, loans, interest, tax and equity consistently.
* Updates all statements automatically whenever an assumption changes.

The engine is deterministic and formula free at the statement level. You do not edit P\&L lines directly. You change variables and drivers instead.
{% endstep %}

{% step %}

#### Outputs and views

From the same engine, Model Reef generates:

* **Core statements** - P\&L, Balance Sheet, Cashflow Statement, Cashflow Waterfall.
* **Valuation outputs** - FCFF and FCFE based valuations, discounting, IRR, money multiple.
* **Dashboards and charts** - time series charts, KPI cards and summary views.
* **Custom reports** - tailored packs for management, investors, lenders or boards.

You can filter these outputs by branch, category, scenario and period and export them where needed.
{% endstep %}
{% endstepper %}

## How Model Reef is different from Excel

Model Reef is not a spreadsheet under the hood.

Key differences:

* **No cell based formulas in statements**\
  You do not copy formulas across columns. All statements are generated from variable rules.
* **Structured model objects**\
  Variables, drivers, branches and models are first class objects with known behaviour, not just ranges of cells.
* **Timing and cashflow built in**\
  Delays, payment terms and accrual logic are core concepts. You do not have to implement AR or AP manually.
* **Scenarios as separate models**\
  When you create a scenario, you clone the entire model into a separate file. Each scenario is a complete, isolated world that you can compare side by side.
* **Import first**\
  You can start from existing PDFs, Excel files or accounting data, and let Model Reef construct a working model automatically before you refine it.

Excel remains useful for ad hoc analysis and detailed one offs, but Model Reef is built for long lived, reusable models where correctness and maintainability matter.

## What Model Reef does not do

Model Reef deliberately does not try to be everything.

It does not:

* Replace your accounting system or ledger.
* Manage invoices, payments, payroll or compliance.
* Run your data warehouse or BI platform.
* Execute trades or manage portfolios operationally.
* Enforce legal waterfall calculations and fund documents.

It focuses on forecasting, scenarios, cash, valuation and structured financial planning.

## Where to go next

To get a deeper feel for how the platform is put together, read:

* [Core Concepts Overview](/help/getting-started/core-concepts-overview.md)
* [Time and Periodicity Basics](/help/getting-started/time-and-periodicity-basics.md)
* [Key Entities - Variables, Drivers, Branches](/help/getting-started/key-entities-variables-drivers-branches.md)

Then move on to:

* [Importing and Data Inputs](/help/importing-and-data-inputs.md) to see how to bring in your own data.
* [Core Modelling](/how-tos/core-modelling.md) how tos for concrete modelling recipes.
* [Valuation](/how-tos/valuation.md) articles for DCF and deal specific patterns.


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