The Cap Table Modeling is one of the most widely used methodologies for preparing the balance sheet of companies. There are different situations where the model may be required. For startup , it is used to derive the reconciliation between the assets and liabilities of the company. In order to understand the model, we have to first know what are the different situations in which this method can be used.

Most of the time, the Cap Table Modeling is used in the financial reporting situations. For example, the balance sheet is used in order to record the reconciliation of assets and liabilities. In order to make the whole process easier, there are special models that embrace change. These include the multiple sectors, sector-by-sector accounts and the global equity plans extension. Basically, when we talk about the Cap Table Modeling we are basically talking about the financial modelling that will basically embrace change and will be very similar to the multiple sectors approach.

Another situation that the Cap Table Modeling is usually required in is the tax reporting. There are some companies that are based in the United Kingdom that are not able to meet the tax requirements because of the diversity of the individuals and the language barriers. The solutions provided by the Cap Table Modeling are very useful in these situations because they allow the calculation of the tax obligations per country, region and sub-regions. With the help of the multiple languages capability of the model you can also project the grants that are offered by the government for both domestic as well as international projects.

There are other situations where the Cap Table Modeling is not required. The equity balance sheets is a perfect example. Most of the banks and other financial organisations are based in the United Kingdom. When the banks want to calculate the equity value of their property, they generally use the multiple languages Cap table modelling that was introduced by the FSA (Financial Services Authority). Similarly when the buyers want to calculate the amount of money that they will receive based on the value of the property that has been negotiated with the seller, they use the Cap table Modeling. When there are differences in the languages used by the buyer and the seller for financial instruments, the solutions provided by the Cap table Modeling can be of great help.

Another application of the Cap table modelling is when the order for providing the buy down or purchase agreement is done through an agent. The process of doing the deal is usually very difficult in English and the agents find it difficult to translate the contract into a clear language for both parties. To overcome this problem the custom reports were introduced by the FSA. The Cap table can be easily transformed into a custom report in the different languages that can be read by the agents.

Another application is the provision of the service team application. This is mostly required when there is a problem between the buyer and the seller. The problem can arise because of lack of clarity in the financial language or the absence of a specific legal term. In such cases the services can be provided by the Cap Table Modeling which contains a number of equity indicators that are able to solve the problems associated with the different types of financial instruments.

A third application is the forecasting Cap table that provides a clear picture about the future trends in equity prices and equity market performance. This makes it possible for the project managers to make decisions accordingly. For example the forecasts are provided for all sectors in the market – Consumer, Durable Goods, Services, Manufacturing, Financial Services etc. When the sectors are analyzed it is easy to predict the performance that can be obtained in future. This makes it possible to make the investment decisions on the basis of the future trends of the share price.

startup mentioned above are a very simple example of the applications that are available with the Cap Table Modeling. It is a fact that the financial reporting rules have undergone a major change in the last decade. This has resulted in the need for better quality and clearer communication of information. It is because of this reason that many organisations are using the multiple languages and combination of the various systems to make their work more transparent and accurate. It is because of this reason that Cap Table Modeling finds its place among the various real time accounting and equity trading packages.