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 financial model ready for forecasting or other valuation work.
Access this feature by selected the Financials tab from the Project Details page.
historical_financial_formatting_tutorial.mp4
To generate a financial model you must upload historical statements with the following requirements:
Microsoft Excel file formats are preferred. These can be exported from accounting software such as Quickbooks, NetSuite, etc.
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.
Socratics supports monthly, quarterly, and annual statement periods.
Statements should be on their own worksheets with the worksheets clearly labelled. Socratics can identify many different naming conventions, the following are acceptable labels:
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.
Review the row header strings to ensure they are clearly labelled. Indentations can be helpful but are not required. Row headers across multiple columns are also acceptable.
Upload your source document to the Project > Documents tab following the direction provided in: Upload
It is recommended to place the historical financials in the “Financials” subfolder.