Understanding the record before drawing a conclusion.

A figure in a spreadsheet can look precise while leaving important questions unanswered. It may be a transaction, an estimate, a subtotal or an adjustment. Before using it in an analysis, establish what it represents and how it came to be recorded.

The source is more than the file containing the number. A bank statement, invoice and ledger may each describe a different aspect of the same event. Their relationship gives the entry its context.

Ask who or what created the record, when it was created and what it was intended to show. A system export may omit fields that are visible in the underlying application. A management report may include adjustments that do not appear in the ledger.

These differences do not automatically make a record unreliable. They explain how it should be read and what additional material may be needed. Keep the original source identifiable when information is reorganised for analysis.

• Coverage

  Does the material include the full relevant period, the accounts and the transaction types needed to address the question? A clean total cannot reveal records that were never included.

• Reconciliation

  Can the figures be connected to another relevant source? Explain timing, classification or scope differences before relying on a comparison.

• Meaning

  Do labels and categories have the same meaning across sources? A payment date, invoice date and accounting period may describe different things.

Some questions cannot be answered from source records alone. An estimate may be necessary, or the analysis may require a view of what would have happened under different circumstances.

State those assumptions separately from documented inputs. Explain why each material assumption was selected and consider whether a reasonable alternative would change the assessment. A calculation becomes easier to examine when its factual foundation and its judgements are distinguishable.

Missing material should be described in terms of its effect on the question. Is the gap confined to an immaterial period, or could it change an important input? Can another source address it? What remains unresolved?

The useful outcome is an explanation of what the available records can support. Its strength comes from the connection between the evidence and the reasoning, including a clear account of the limits.