Why is organising your plan so important?
Organising your plan means ordering all your financial activities into sections and groups. It's like organising your computer files into folders and sub-folders.
Unlike a traditional folder system, there are substantial other benefits you gain from doing this:
- See the totals of groups and sections in your reports
- Move large parts of your plan at once on the timeline
- Automatically calculate inventory requirements or cost of sales for entire groups at once
- Highlight the numbers for specific groups or sections on your dashboard
- Test an idea by turning on/off sections or groups.
What are groups and sections?
A group contains the financial activities the business does. Use them to group together similar products or related costs. For example, you could create a group called Shoe sales that contains all the different shoe types you sell.
A section contains multiple groups. So you could have a section called Sales that contain the groups Shoe Sales and Clothing Sales.
Building a plan like this means when you go to your reports you can click the arrows next to the top lines to reveal this structure. In this example you will be able to drill into 'Cash received' on your cash flow to reveal the total of Sales. Drill into Sales and you will see the totals for Shoe Sales and Clothing Sales. Drill into these groups and you will see the numbers for each individual product.
Adding Components to Groups
What is a Component?
Components contain your financial information and are added to your groups. Press the 'Components' button inside any group to start adding to it. They are split into four types: Income (green), Costs (red), Assets (yellow) and Funding (Blue). They can be named to reflect something in your business.
- An Income Component could be named T-Shirts to represent something you are selling.
- An Operational Cost Component could be named Phone bills to represent a business overhead.
- An Asset Component could be named Delivery Van to represent a vehicle the business owns.
- A Loan Component could be named Startup loan to represent the funding used to start the business.
It's really up to you. Name them how you see fit.
Once added to your plan you can click on any of them, this will open up a new panel on the right-hand side that allows you to enter your numbers for the specific component. We'll go into more depth around this in another guide.