From the course: Excel for Finance: Building a Three-Statement Operating Model

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Headcount in outer years

Headcount in outer years - Microsoft Excel Tutorial

From the course: Excel for Finance: Building a Three-Statement Operating Model

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Headcount in outer years

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- [Instructor] All right, so now we need to finish forecasting the headcount in the outer years. And I can see the note here from the CFO, "3% growth on run rate, "then 3% growth year-over-year thereafter." So, I at least know I need some kind of 3% assumption. So I'm just going to build that first. Change this to three. And when I first put this course together, I was thinking, "What do we want to do here "in terms of best practices," right? Because we have a headcount schedule, it only goes out one year, but we need three years of forecast. And to be honest, we could get overly sophisticated, we could look for some kind of match as of the latest, raise it to a growth assumption, and subtract the time gone by and that sort of thing, and we can do that. But sometimes it's worth just breaking away from best practices to accomplish the objective. Right, that could really over-complicate things if we have a multi-line…

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