Fri. May 24th, 2024

Excel is basically a spreadsheet and part of Microsoft office suite. Excel is a very important software of Microsoft office suite. It is very useful in businesses whether big or small. Due to its ease of use businesses rely a lot on excel. Excel basically helps maintain the financial data of the business. You don’t have to spend hours doing copy and pasting like other softwares present in the market. Excel has a shortcut for everything. Not only in business excel is used in so many other things like you can do simple maths, you can merge two sheets with similar data, you can manage your budget etc. But before knowing all the important uses of excel, let us first understand about excel. 

What is excel? 

Excel is a spreadsheet that allows you to do calculations. It helps in organizing data and performs financial analysis. It enables you to store the data, organize the data, calculate the data and manipulate the data using formulas. An excel sheet is divided into rows and columns. Rows and columns intersect at a space called a cell. Each cell contains data. 

Originally, during its development phase it was named Odyssey. Excel was first released on September 30, 1985. 

Uses of excel- 

Excel is used in many things. It is the most easy yet very powerful workspace tool. 

  • Data entry and analysis 
  • Reporting and visualizations 
  • Data management 
  • Accounting 
  •  Calculations 
  • Financial 
  • Forecasting 

Let’s discuss its uses in detail- 

  • Data entry and analysis- 

Excel can store a lot of data. The size of the excel file depends upon your system computing power and memory. Excel worksheets have 10,48,576 rows and 16,384 columns. Excel comes in quite handy when you have to store lots of data. Once the data is stored you can use it for different purposes. One can create customized data entry forms according to their requirement like employees task list, emailing list of customers etc. 

Once the data is stored in the excel spreadsheet, one can easily analyze the data using formulas and pivot tables. It helps us to focus on the important segment of data from large pile of data available. One can use features like sort, swap, filter and can manage the data more systematically. Data analysis is one of the most important tool of excel. 

It helps in better decision making by presenting the data in more meaningful way. 

  • Reporting and visualizations- 

Visualizations are a great way to present your report. Excel provides you with a number of tools that can be used to create attractive and meaningful reports. One can use different charts and graphs to present the information. Data presented in the forms of chart presents more information in a summarized and clear way.  Ms-excel provides a vast range of in- built chart templates to choose form. You can choose the template and input the data and can customize it accordingly. These visualizations and reporting play a great role in decision making. It helps in analysis of data by figuring out the trends and patterns. An attractive and meaningful report is a great way to convey your message. 

  • Data management- 

Managing data is quite easier with excel. It allows you to enter data in the form of rows and columns. Hence you can easily manage the data in excel. It lets you to edit the data like removing the duplicate entries, removing incomplete entries. Excel lets you to create charts to manage the data. Due to its interactive interface and ease of use excel can be used by anyone. One can learn excel easily. Hence it is easy to handover data to new employees which makes data management quite easy. Moreover, reports can be easily created and shared in excel making it easier to collect and verifying the data. 

  • Accounting- 

Excel is often termed as accounting software. Managers often use excel to maintain customers record. Excel provides a great way to share and maintain client file. An account manager is generally responsible for maintaining the relationship with the existing customers and getting new ones by building loyalty among customers. Ms- excel provides a simple way to organize the data and keep the data up- to- date. It is one of the main task of account manger to maintain the data as helps in generating sales by getting the customers confidence. Moreover , they can easily share the details with others when required. Excel comes with many accounting and budgeting templates to use from. These templates can be modified accordingly. Hence it helps in synthesizing the information quickly. 

  • Calculations- 

Doing calculations in excel is quite easy. You can almost do all kind of calculations in excel. MS- excel provides you with plenty of formulas to perform calculations on your data. Excel has almost more than 450 functions to work out with. We can use these formulae on row and columns to carry out the calculations. Moreover, one can also create the custom formulae in order to don’t repeat the same calculation again and again. In- fact, one can use MS- excel instead of calculator in order to perform simple maths like addition, subtraction, multiplication, division. It is quite easier to get the result. For example- you can use the Autosum feature to get the result of entire column rather than entering manually in the formula. These formulas and functions enhances the functionality of excel. 

  • Financial- 

Excel is defined as the most powerful data management tool but the most of the data it manages is financial. Excel helps in maintaining the different financial data of the business like inventory, sales, expenses, supplier information, and employee information. This data further helps in performing calculations and obtaining the trend and patterns. These observations help in future decision making regarding business. It also helps in budgeting. 

  •  Forecasting- 

A business main target is to grow. Hence all the data maintained helps in forecasting the future scenarios. A business always needs to maintain and organize the data in order out reports that help in future decision making. Excel provides a great way to manage and interpret the data. 

Even if there is no past data available, one can set the goals to be achieved. By providing the right objectives, one can easily find out what needs to be done in order to achieve the goal.