Abstract: the aim of the work is to consider the process of developing a financial model of a company-a representative of small and medium-sized businesses in Russia. Data for the formation of basic assumptions are provided by companies-distributors of automotive parts. The final financial model reflects the specifics of small and medium-sized businesses associated with the distribution of auto parts. All necessary accounting and financial ratios are correctly observed in the model. The model contains a forecast profit and loss statement, balance sheet, calculation of the financial cycle and its components, debt / equity ratio. The model can be used in real business in the development of medium – and long-term plans, to identify the need for financing in the planning interval, in the elaboration of scenarios such as “what if” and in negotiations with banks and private investors in order to attract financing. With minor modifications, the model can be used to assess the value of the business income or comparative method.
Keywords: financial model, basic assumptions, forecasting, forecast profit and loss statement, forecast balance sheet