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Understand Spreadsheet Software

Learning Outcomes

· Describe the uses of Excel

· Define key spreadsheet terms

Microsoft Excel is the electronic spreadsheet program within the Microsoft Office suite. An electronic spreadsheet is an app you use to perform numeric calculations and to analyze and present numeric data. One advantage of a spreadsheet program over pencil and paper is that your calculations are updated automatically, so you can change entries without having to manually recalculate. Table 1-1 shows some of the common business tasks people accomplish using Excel. In Excel, the electronic spreadsheet you work in is called a worksheet , and it is contained in a file called a workbook , which has the file extension .xlsx. At R2G, you use Excel extensively to track finances and manage corporate data.

Table 1-1

Business Tasks you can Accomplish Using Excel

you can use spreadsheets to

by

Perform calculations

Adding formulas and functions to worksheet data; for example, adding a list of sales results or calculating a car payment

Represent values graphically

Creating charts based on worksheet data; for example, creating a chart that displays expenses

Generate reports

Creating workbooks that combine information from multiple worksheets, such as summarized sales information from multiple stores

Organize data

Sorting data in ascending or descending order; for example, alphabetizing a list of products or customer names, or prioritizing orders by date

Analyze data

Creating data summaries and short lists using PivotTables or AutoFilters; for example, making a list of the top 10 customers based on spending habits

Create what-if data scenarios

Using variable values to investigate and sample different outcomes, such as changing the interest rate or payment schedule on a loan

Enlarge Table

Details

When you use Excel, you have the ability to:

· Quick Tip

You can also use the Quick Analysis tool to easily create charts and other elements that help you visualize how data is distributed.

Enter data quickly and accurately

With Excel, you can enter information faster and more accurately than with pencil and paper. Figure 1-1 shows a payroll worksheet created using pencil and paper. Figure 1-2 shows the same worksheet created using Excel. Equations were added to calculate the hours and pay. You can use Excel to recreate this information for each week by copying the worksheet’s structure and the information that doesn’t change from week to week, then entering unique data and formulas for each week.

Figure 1-1Traditional Paper Worksheet

Enlarge Image

Figure 1-2Excel Worksheet

Enlarge Image

· Recalculate data easily

Fixing typing errors or updating data is easy in Excel. In the payroll example, if you receive updated hours for an employee, you just enter the new hours and Excel recalculates the pay.

· Quick Tip

Power users can perform more complex analysis using Business Intelligence tools such as Power Query and new forecasting functions.

Perform what-if analysis

The ability to change data and quickly view the recalculated results gives you the power to make informed business decisions. For instance, if you’re considering raising the hourly rate for an entry-level tour guide from $12.50 to $15.00, you can enter the new value in the worksheet and immediately see the impact on the overall payroll as well as on the individual employee. Any time you use a worksheet to ask the question “What if?” you are performing what-if analysis . Excel also includes a Scenario Manager where you can name and save different what-if versions of your worksheet.

· Change the appearance of information

Excel provides powerful features, such as the Quick Analysis tool, for making information visually appealing and easier to understand. Format text and numbers in different fonts, colors, and styles to make it stand out.

· Create charts

Excel makes it easy to create charts based on worksheet information. Charts are updated automatically in Excel whenever data changes. The worksheet in Figure 1-2 includes a 3-D pie chart.

· Share information

It’s easy for everyone at R2G to collaborate in Excel using the company intranet, the Internet, or a network storage device. For example, you can complete the weekly payroll that your boss, Yolanda Lee, started creating. You can also take advantage of collaboration tools such as shared workbooks so that multiple people can edit a workbook simultaneously.

· Quick Tip

The flash fill feature makes it easy to fill a range of text based on examples that are already in your worksheet. Simply type [Ctrl][E] if Excel correctly matches the information you want, and it will be entered in a cell for you.

Build on previous work

Instead of creating a new worksheet for every project, it’s easy to modify an existing Excel worksheet. When you are ready to create next week’s payroll, you can open the file for last week’s payroll, save it with a new filename, and modify the information as necessary. You can also use predesigned, formatted files called templates to create new worksheets quickly. Excel comes with many templates that you can customize.

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