Overview

Socratics can structure messy historical financial statements provided by your client. The AI engine can parse the uploaded document, understand the listed line items, map the strings into standardized categories, and output a formula-driven forecast financial model.

This process typically takes 1–3 minutes.

Access this feature by selected the Financial Model tab inside of a project folder.

Generating A Financial Model

Upload Requirements

historical_financial_formatting_tutorial.mp4

Uploading Historical Financials

When you first visit the Financial Model tab you will be asked to upload a company historical financial statements. For the best results, follow the onscreen instructions or steps outlined below.

To generate a financial model you must upload historical statements with the following requirements:

1. Microsoft Excel file formats are preferred. These can be exported from accounting software such as Quickbooks, NetSuite, etc.

2. Statements must include an income statements and a balance sheet. A cash flow statement is optional. 3+ past years is preferred but 2 years is acceptable.

3. Socratics supports monthly, quarterly, and annual statement periods.

4. Statements should be on their own worksheets with the worksheets clearly labelled. Socratics can identify many different naming conventions, the following are acceptable labels:

   • Income statement, IS, profit and loss, profit & loss, p&l, PL, etc.
   • Balance Sheet, BS, etc
   • Cash Flow Statement, statement of cash flows, CFS, etc.

   

5. Periods must be clearly labeled but do not need to follow a particular convention or format. AI can typically derive periodicity based on clear labels; however, if you start to receive errors or undesirable results on your output you should try troubleshooting your column header formatting.

   Examples of acceptable formats include but are not limited to the following:

   • 2023
   • January 2023 to December 2023
   • Jan - Jun 2023
   • Q1 2023
   • 12/31/2023
   • December 2023
   • 12/31/2023

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Important: Uploaded statements should have the same number of periods and time represented should be aligned with one another.

✅ Accepted Income Statement: 2022,2023,2024 Balance sheet: Dec 31 2022, Dec 31 2023, Dec 31 2024

❌ Not accepted (# of periods doesn’t match) Income Statement: 2022,2023,2024 Balance sheet: Dec 31 2022, Dec 31 2023

❌ Not accepted (time represented doesn’t match) Income Statement: 2022,2023,2024 Balance sheet: 2021, 2022, 2023

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