Businesses play a pivotal role in building the economy of any nation. Regardless of the size of the organization, businesses make the countries prosper. Of course, it is not easy to run an enterprise smoothly. It involves a large number of internal and external factors to successfully operate any business. However, in measuring the growth of the enterprise, financial strength is calculated. To handle the financial department of the companies, experienced professionals are being hired. Although small organizations don’t have many experts, they do appoint accountants for their work. Nowadays, they don’t only handle accounts. Their horizon of work has been expanded to preparing financial reports, managing inventory, obeying tax regulations and a lot more. They have to use the latest accounting software including MS Excel. Hence, they should be well versed in excel. Not to surprise, there are accountants who are not familiar with excel and experience challenges in their work. There are several important formulae and functions and usage of excel for accountants. To better understand MS excel, let’s begin with its basics.
Developed by Microsoft, MS Excel is basically the spreadsheet designed to perform data functions. The first version of MS Excel was released back in 1987. It uses a table-like format to record the data and making reports. To use this spreadsheet, the number has been put in rows and columns. In fact, users can create histograms, charts as well as graphs with the help of excel. This is one of the most common tools used by businesses across the globe. Be it Windows, macOS or mobile operating system, this program fantastically works on every platform. There are also basic and advanced versions of excel available for the users.
Significant Functions
To work on any program, different tools and shortcuts are required. For using excel, formula and functions are the way. Considering the functions, they are predefined formulae designed for a specific purpose. However, there are ample of formulae which accountants find hard to remember. So, they must learn some of the necessary functions given below:
1. AVERAGE
As the name suggests, this function is aimed at calculating the average of values or range of cells. To use this function, one must begin with ‘=’ sign followed by AVERAGE along with starting and ending values. One can also pick initial cell as well as last cell.
Formula: =AVERAGE(value 1, value 2, etc)
2. SUM
This is a very basic function found in excel to perform addition. To use this, one has to first put ‘=’ sign before SUM along with values to get the desired result. One can also pick the cells instead of values.
Formula: =SUM(value 1, value 2, etc)
3. TRIM
While working on excel, there are possibilities of leaving spaces which will result in wrong solutions. To remove this mess, TRIM function is being used. This is basically used when data is copied and pasted on the excel spreadsheet.
Formula: =TRIM(text)
4. IF
This is a very powerful function of excel. It is used to test conditions, finding true and false as well as to identify repetition of values in a sheet and much more. However, small changes will be made in the formula as per the requirements.
Formula: =IF(logical_test, value_if_true, value_if_false)
5. MAX & MIN
These functions are used to find the smallest and largest values from the spreadsheet. These functions are used separately. In these functions also, one can directly put the values and get the answers.
Formula: =MAX(Cell1:Cell5)
=MIN(Cell1:Cell5)
In the context of excel functions, the above-mentioned formulae showcase only a very small portion. In reality, their usage is extremely vast. Be it a small or big accounting task, excel will be of good help.
Advantages of MS Excel to Accountants
MS Excel has varied applications which support business functions and help accountants in their regular job. Let’s check out a few of the benefits:
- Storage of Information gets easier: The bigger the organization, the more financial information and records to be maintained by the accountants. In excel spreadsheets, it is quite convenient to save data and access it for future usage.
- Analyzing Datasets: This is another wonderful benefit of excel. Whenever it is required to review the previously stored data, it can be done at any time. It also facilitates the comparison of financial reports to get clarity about the financial position of the organization.
- Digitally Secured Data: Security of data is one of the biggest concerns in today’s time. Undoubtedly, data registered on papers may get lost or stolen. But, electronically written data on excel sheets are safer from those risks.
- Generating Reports: With excel, the task of reports’ generation does not intimidate the accountants. They can easily prepare reports in MS excel using the given templates. This not only saves time but also increases the work efficiency of the professionals.
- The calculation gets Easier: This has proved as an effective way to reduce the workload. In excel, it is easy to perform mathematical operations within lesser time. Accountants put
‘-formulae in the spreadsheet and within a few clicks, they get the desired results. - Making Forecast: For the success of any venture, estimations have to be made. Although it is not easy to identify future trends, it can be done with the help of excel graphs. Accountants put past data on spreadsheets and use them to predict the required results.
In today’s times, excellence is the key to success. That’s why students have been asked to achieve excellence in their academics as well as extra-curricular activities. This attitude will help them in future too. Scholars who pursue their career in the financial sector should command their subjects since college days. For those students, assignments are of great use. The task of assignments writing improves their knowledge and clarifies their doubts. And, if they feel trouble in making assignments of any subject, including accounts, they should take help from the team of Archlite Assignments. Due to their strong customer service support and reasonable prices, students rely upon them for accounting assignment writing.
