Financial Statements for FS

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SimpleFarmer
Posts: 332
Joined: Tue Dec 10, 2019 6:03 pm
Location: Boise

Re: Financial Statements for FS

Post by SimpleFarmer » Fri Mar 13, 2020 5:40 pm

Yn0z wrote:
Fri Mar 13, 2020 12:33 pm
However, I think that if we really wanna get technical we should also incorpororate labour productivity
This is entirely true if you were a real life company as well. You would want to know how much your or your employees time is being spent and what you or they are producing as a result. For this information, you as an owner wouldn't turn to the accounting department, you would perhaps go ask HR. If you read a set of financial statements they won't tell you the labor productivity of the workers, as investors don't really care about anything other than Salary Costs, and how they affect the bottom line. These are supposed to be Financial only, and not all-informative of in game progress.
Because everyone's time is of a different value, it is usually a bit of a mixture of how much time:profit and time:enjoyment. I thought to measure time to productivity before, but I think the best measurement is when you have finished said task and see how much you sold said product for, just to ask yourself if it was worth it and it should be pretty apparent. For example, if you just sold a batch of sugar cane, the answer is clearly no.
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Yn0z
Posts: 54
Joined: Tue Feb 18, 2020 9:36 am

Re: Financial Statements for FS

Post by Yn0z » Sat Mar 14, 2020 11:25 am

SimpleFarmer wrote:
Fri Mar 13, 2020 5:40 pm
Yn0z wrote:
Fri Mar 13, 2020 12:33 pm
However, I think that if we really wanna get technical we should also incorpororate labour productivity
This is entirely true if you were a real life company as well. You would want to know how much your or your employees time is being spent and what you or they are producing as a result. For this information, you as an owner wouldn't turn to the accounting department, you would perhaps go ask HR. If you read a set of financial statements they won't tell you the labor productivity of the workers, as investors don't really care about anything other than Salary Costs, and how they affect the bottom line. These are supposed to be Financial only, and not all-informative of in game progress.
Because everyone's time is of a different value, it is usually a bit of a mixture of how much time:profit and time:enjoyment. I thought to measure time to productivity before, but I think the best measurement is when you have finished said task and see how much you sold said product for, just to ask yourself if it was worth it and it should be pretty apparent. For example, if you just sold a batch of sugar cane, the answer is clearly no.
in short, I agree as there are metrics to this specific element that we need to have in game that aren't yet present like output per employee per hour and then the impact of the market price mechanism when you flood the game is not exact either, all of these aspects would make for an interesting free market model and imply that efficient farming plays a huge roll in the profitability of the farm

Swedish_Contractor
Posts: 9
Joined: Tue Mar 24, 2020 10:03 am

Re: Financial Statements for FS

Post by Swedish_Contractor » Thu Mar 26, 2020 2:40 pm

Thanks for sharing this SImpleFarmer!

I always try to be realistic with my finances but my excel and financing skills are somewhat lacking. I downloaded your excel sheets and they work great!

SimpleFarmer
Posts: 332
Joined: Tue Dec 10, 2019 6:03 pm
Location: Boise

Re: Financial Statements for FS

Post by SimpleFarmer » Thu Mar 26, 2020 11:51 pm

Swedish_Contractor wrote:
Thu Mar 26, 2020 2:40 pm
Thanks for sharing this SImpleFarmer!

I always try to be realistic with my finances but my excel and financing skills are somewhat lacking. I downloaded your excel sheets and they work great!
Thanks for the feedback - just a little note: the balance sheet will show as unbalance if you're off of by even 0.01, I will be adding a rounding function but you might want to know that if you are getting an "unbalanced" note.
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