Build a full 3-statement financial model with Edit with Copilot

Step 1: Write the assumptions firstExcel

List revenue growth, margin, capex, working-capital and financing assumptions on their own tab before asking for anything — Edit with Copilot needs real numbers to build from, not vague direction.

Step 2: Use Edit with Copilot to build the full modelExcel

This is Excel's autonomous editing mode (Microsoft renamed it from "Agent Mode" to "Edit with Copilot" in March 2026): it plans the structure, builds the formulas across sheets, checks that the balance sheet balances, and iterates on its own.

Prompt idea:

Using the assumptions on the Assumptions tab, build a linked 3-statement model: income statement, balance sheet, and cash flow statement, each on its own tab. Make sure the balance sheet balances and flag any circular reference.

Step 3: Review what it builtExcel

Click into individual cells on each statement — not just scan the totals — and trace a few formulas back to the Assumptions tab to confirm they're pulling from the right inputs.

Specifically check that the cash flow statement's ending cash figure matches the balance sheet's cash line item exactly; a one-cent mismatch there usually means a sign error or a missing adjustment somewhere upstream.

Step 4: Stress-test one assumptionExcel

Pick one assumption — revenue growth is usually the clearest test — and change just that single cell on the Assumptions tab.

Watch whether all three statements recalculate consistently (net income flows through to retained earnings, retained earnings flows through to the balance sheet, cash flow reflects the change); if one statement doesn't move or moves inconsistently, a link is broken somewhere even if the model looked fine before.

Check the work

• Confirm the balance sheet balances in every forecast period, not just year one.
• Trace the ending cash balance on the cash flow statement to the cash line on the balance sheet.
• Change one assumption and verify all three statements move together before trusting the model.

Source: CFO Connect, "Summit 2025 Recap: Microsoft Copilot for CFOs — Real Workflows That Save" (2025)