This article will cover all the steps necessary to build your first Castaway Project File.
Before you Begin
Before starting this workflow we recommend carefully considering your the purpose and building requirements:
- Purpose - Who is using this forecast and what does it need to achieve?
- Plan - How will the model be built and what does the structure need to look like?
For all the key considerations of the planning process see: Overview: Planning your Forecast
The Five Step Build Process
The 5 Steps: Building your First Forecast
- Build your Chart of Accounts (CoA) via Integration
- Refine your Element Settings
- Import your Actuals Data
- Projected data
- Reporting
1. Build your Chart of Accounts (CoA) via Integration
Setting up your Integrations
The best way to setup your Chart of Accounts is via an integration source. The integration options are:
- A Direct Integration via your accounting system's API is available with Xero, MYOB and Quickbooks
- An Excel Integration through an Excel Import Template built from Trial Balance reports
We strongly recommend avoiding manual building (creating and naming elements one-by-one) as this is inefficient and will require mapping later on anyway.
Mapping your CoA
Once you have established your integration, you can build your CoA by mapping your Account Codes to elements in Castaway. There are some important mechanics to understand at this stage before you start your mapping process:
- Mapping you Chart of Accounts (CoA)
- Structuring your Chart of Accounts (CoA) - Adding sections and sub-sections
- Element Type - Choose the right element for appropriate modelling options
- Partner Elements - Some elements are dependant on others being created first
2. Refine your Element Settings
The Element Settings make up the modelling and cashflow assumption that drive your forecast. Elements are the building blocks of Castaway, and as each area of accounts will need different treatment, the settings are tailored to each Element Type (Fixed Asset elements will have very different settings compared to a Sales element).
Use the Element Groups view to review edit your element settings.
Change by Exception (Recommended)
Our recommended approach at the build phase is to make changes to your settings by exception. For the most part the default settings for a given Element Type are suitable to get a workable model, but you will have lines in your model that you know should not have GST/VAT against them, or have 0 day credit terms, for example.
3. Import your Actuals data
With your source data mapped you can now Import your Actuals Data. Your actuals data does not enter your model until you push it into the system from the Mapping Screen (Forecast > External Sources)
We recommend reviewing your actuals data in the Actuals Data tab (Forecast > Actuals Data). Here, you will need to manually input your Opening Retained Earnings balance if this is your first import.
4. Projected data
With your actuals data imported your modelling for projected months can now run off the opening balances. When building out your projection there are a number of way you can approach this. The simplest method is to model your projection element-by-element, adding numbers and updating any methods or settings as necessary.
The faster alternative is to use the Upload Forecast Data Template (UFDT) to bulk upload monthly data.
Opening Balances
You must also consider how you Model your Opening Actuals Balances. Castaway has a few special elements where you model collections and payment 'across the bridge' between your actuals and projected data.
Dynamics
Introducing Dynamics into your Model will make your model more robust and reduce the need for manual entry of data. For example, instead of manually entering a cost you can model it as a percentage of a Sales or Expense line, calculate the value through Drivers or Units, and even use Custom Formulas.
5. Reporting
When you are happy with setup of your model you are ready to review your main reports and get your first results. Your main reports are accessible under the Analysis.
Reviewing your reports is also an opportunity to review your model's data and settings. If a number does not look right in your reports, remember, it is a result of the assumptions you have fed into the model.
Next Steps
Once you are happy with your file build, consider the following articles to help you get the most out of Castaway: