Spreadsheet modelling


T

Troy Steadman

While I'm working my way through Ronald's stuff he (and hopefully one or
two of you) might be interested in how spreadsheet modelling can be used
for IHT (or *any* complex problem with lots of variables).

The method in this case was:
1) Identify what we wanted to do.
2) Go to a solicitor.
3) Agree a method.
4) Put the method into an Excel model so that every variable could be
"What iffed".

Here's how things have turned out so far but there could have been many
other scenarios. As time has gone by Al has found it convenient to split
her embarassingly large slice of the cake into two.

Change any number (in the non-website version of course) and *all*
calculations, pie charts, even sentences change automatically to reflect
the new situation.

http://www.cashflowtest.150m.com


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E

Edward Cowling

Troy Steadman said:
While I'm working my way through Ronald's stuff he (and hopefully one or
two of you) might be interested in how spreadsheet modelling can be used
for IHT (or *any* complex problem with lots of variables).

AAArrrgghhhhhhhhhhh

"Sound of running feet and doors slamming"

:)
 
T

Troy Steadman

Edward Cowling said:
AAArrrgghhhhhhhhhhh

"Sound of running feet and doors slamming"

:)
Surely running round and slamming doors is not only off topic but
potentially dangerous?

Don't any of you ever use spreadsheet models? Your bloke who posted
£1.75 of Prepayments does because he commissioned the most complex one
I've ever done. (I've told you this already but never mind!). For a new
Opticians *if* Partial Exemption rules changed (switch), *if* they
registered for VAT immediately or waited (switch), integrated 2 year
P&L, Cash Flow and Balance Sheets for variable growth (spinner).

Took ages and the only trouble was it demonstrated immediately the
project was doomed :0(


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P

Peter Saxton

Surely running round and slamming doors is not only off topic but
potentially dangerous?

Don't any of you ever use spreadsheet models? Your bloke who posted
£1.75 of Prepayments does because he commissioned the most complex one
I've ever done. (I've told you this already but never mind!). For a new
Opticians *if* Partial Exemption rules changed (switch), *if* they
registered for VAT immediately or waited (switch), integrated 2 year
P&L, Cash Flow and Balance Sheets for variable growth (spinner).

Took ages and the only trouble was it demonstrated immediately the
project was doomed :0(
The key is to understand the factors that affect the decision so you
dont always need to do the detailed calculation.
 
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E

Edward Cowling

Troy Steadman said:
Took ages and the only trouble was it demonstrated immediately the
project was doomed :0(

All joking aside I once put together a set of financial projections
that did exactly that. The business was declining, so I put together
a spreadsheet projecting forward from past trends and using moving
annual totals. (great things MATS).

The trouble was the MAT projected that the business was going
to decline to the point where it wasn't a viable business in 3 years
time !

The owner huffed and puffed and added a few noughts to my figures
to show the Bank. But you can't often buck trends and sure enough
he's now in smaller premises with about a tenth of the staff and his
turnover is almost exactly what the MAT predicted !
 

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