A Financial model is a model that represents the financial operations or financial statements of a company in terms of its business parameters and forecasts future financial performance.
-NASDAQ
Financial modeling is one of the most used tools to supplement financial decisions. Be it, valuation of something as small as assets and liabilities of a business or something as large as the whole business itself or an altogether new business, financial modeling is an essential part.
Read the following article by Sui Chuan at ValueEdge to know more about the pros and cons of this holy grail of finance:
http://www.value-edge.com/the-pros-and-cons-of-financial-modelling/