If you've noticed that financial figures in RunSmart don’t always match your manual calculations in Excel, don’t worry—this is expected behavior and does not indicate an error. The discrepancy typically results from differences in rounding precision between RunSmart’s internal calculations and Excel’s manual computations.
Here’s a breakdown of why this happens:
Understanding the Difference
RunSmart performs financial calculations using full decimal precision before rounding numbers for display purposes. In contrast, when you manually calculate values in Excel, you’re likely using already rounded numbers, which can lead to small differences.
For example, consider the calculation of Gross Profit:
RunSmart Calculation (Before Rounding):
Total Income: 37,466.553443906 (rounded to $37,466.55 for display)
COGS: 22,479.99749501 (rounded to $22,480.00 for display)
Gross Profit Calculation in RunSmart:
37,466.553443906 - 22,479.99749501 = 14,986.555949
Rounded for display: $14,987.12
Manual Excel Calculation (Using Rounded Values):
Total Income (Rounded): $37,466.55
COGS (Rounded): $22,480.00
Gross Profit Calculation in Excel:
37,466.55 - 22,480.00 = 14,986.55
Resulting Difference:
RunSmart’s displayed Gross Profit: $14,987.12
Excel’s manually calculated Gross Profit: $14,986.55
Difference: $0.57
Why Does This Happen?
Full Precision vs. Rounded Values: RunSmart maintains full decimal precision throughout its calculations before rounding at the final step. Excel, on the other hand, calculates using the rounded figures you input manually.
Accumulated Small Differences: These small rounding differences can accumulate across multiple calculations, leading to slight variations in totals such as Gross Profit or Net Income.
Does This Affect Accuracy?
No. These minor discrepancies do not indicate an error in RunSmart’s calculations. They are a natural result of maintaining a high level of precision before rounding. The total impact is typically only a few cents, sometimes a dollar or two, and does not affect the overall accuracy of your financial forecasts.
What Can You Do?
If you want to validate figures manually, ensure you’re using the same level of decimal precision in Excel as RunSmart.
Keep in mind that financial reports round numbers for readability, but RunSmart’s backend calculations maintain precision.
If you have any concerns about specific discrepancies, feel free to reach out to our support team for further clarification.