Microsoft Excel was released in 1985 and since then has grown to become arguably the most important computer program in workplaces around the world. Excel is a powerful tool that has become ingrained in business processes worldwide; be it for budgeting, analyzing stocks or issuers, or organizing client sales lists.
Why Microsoft Excel is so popular?
Accounting and Finance
Financial accounting and financial services are the areas of finance that rely heavily on and also benefit from Excel spreadsheets the most. You can perform complex modeling in minutes with the use of Excel.
Every user knows that Excel can subtract, add, divide, and, multiply. But not many people know that it can do much more with its advanced IF functions when coupled with INDEX-MATCH-MATCH, VLOOKUP, and pivot tables.
Product Management and Marketing
Product and Marketing professionals use spreadsheets to list sales targets and customers. And, Excel can help you manage your sales force and plan future marketing strategies based on analysis of past results.
Using a pivot table, one can easily summarize sales and customer data by category with a quick drag-and-drop.
Human Resources Planning
While various database systems can be used to manage employee information and payroll, exporting that data into Excel allows users to summarize expenses and hours by pay period, month, or year, discover trends and better understand how your workforce is spread out by their function or pay level.
HR professionals use Excel to take a huge spreadsheet filled with employee data and understand exactly where the costs are coming from and how to best plan and control costs for the future.
The use of Excel in businesses has no bounds for its applications. Here are some examples:
- While planning an editorial calendar for a website, you can list out topics and dates in a spreadsheet.
- While creating a budget for a small product, you can list expense categories in a spreadsheet, update it monthly and create a chart to show how close the product is to budget across each category.
- You can calculate customer discounts based on monthly purchase volume by product.
- When planning a team outing to a football game, you can use Excel to track the costs and RSVP list.
- Excel can be used to create revenue growth models for new products based on fresh customer forecasts.
- Users can summarize customer revenue by product to find segments to build stronger customer relationships.
- Use complex calculation methods, like Sharpe ratios and more.