Much Better Way

Today at work I almost started only one small task, although I achieved a great deal more.

All I had to do was do a bit of budgeting and financial planning - cash flow, profit, the usual thing. After consistently failing to get the numbers to add up (literally) for most of the morning, I decided that our over-evolved financial planning spreadsheet was just not up to the job and could be done in a MBW¹.

The problem with TOW² is that as soon as you try to tie financial transactions that occur on different dates together (for example, you invoice in May, so you show a profit in May, but you get half cash in July and the rest in September, before paying the VAT to HMRC in November) you easily generate spaghetti links all over your spreadsheet. This is just error-prone, particularly when things change (you don't get the order until June so you invoice in June instead....which formulae do you change?...).

So after some thought, I ended up with a much better Openoffice spreadsheet-based financial forecast that actually works. It's based on the same principles as typical accounting packages - basically nominal codes and double entry bookkeeping and so on. It's got clear inputs, outputs, bits you can edit, and bits that you should not.

Not only does this mean that there are far fewer ways to break it, but it ties much closer to the accounting software that we use for the real accounts. It's faster to use, will save me lots of time in the future and it probably also gets the numbers to add up too.

So, today I did great things!

And tomorrow, I'll actually do the budgets.

^1.Much Better Way.

^2.The Old Way.