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20
Jun

Essential Financial Functions In Excel For Accounting Professionals
  • David Ringstrom
  • 553
Summary: In this article, we'll look at four essential financial functions available in Excel. These are Future Value, Present Value, Net Present Value, and Payment.Among Investment Bankers and Financial Analysts, Microsoft Excel is the most important tool. Over 70 percent of their time was spent preparing Excel models, formulating assumptions, valuing things, doing calculations, and creating graphs.If you're a finance professional or an accountant, you should be familiar with these Excel formulas. Get familiar with four of the financial functions in Excel 2010; Present Value, Future Value, Net Present Value, and Payment.Here we go, one by one, through all the financial functions -Present Value:An expected future cash flow stream is measured by its present value (PV). You can calculate the PV fairly easily with Excel.A stream of cash flows has a present value (PV) that represents its current value.From stocks and bonds to real estate, PV analysis can value a variety of assets.Neither PMT nor FV must be omitted if FV is omitted, but both can be included.NPV is different from PV as it considers the initial investment amount. How to calculate PV in Excel?PV (Present Value)=PV(RATE, NPER, PMT, [PV], [TYPE])Future valueIn financial planning, future value (FV) represents the value of an asset in future years. FV, then, is a measure of how much a particular amount of money will be worth at a particular time.Generally, the calculation of FV is based on a projected growth rate. In an interest-bearing account, the future value of the money can be determined quickly. However, due to a volatile rate of return, it might be difficult to calculate the FV of investments in stocks, bonds, and other securities.As a result, Microsoft Excel has a built-in function that does the math for you based on your input.Future value = FV (RATE, NPER, PMT, [PV], [TYPE])RATE = Interest rate per periodNPER = Number of payment periodsPMT = The Amount paid (if omitted—it’s assumed to be 0, and FV must be included)[FV] = Future value (if omitted—it’s assumed to be 0, and PMT must be included)[TYPE] = [optional] When payments are due. 0 = end of period, 1 = beginning of period. Default is 0.Net Present ValueAn important component of corporate budgeting is the net present value (NPV). The calculation helps determine whether or not a project is financially viable.Companies can determine a potential project's financial viability by looking at net present value (NPV).It is especially beneficial when comparing more than one potential investment or project.Corporate budgeting relies on NPV.Instead of calculating NPV manually, you can use Excel.Projects with a negative NPV forecast loss. Projects with a zero NPV forecast profit.How to calculate the present value (PV) for a single cash flow?NPV = (Today’s value of expected future cash flows) – (Today’s value of invested cash)Where:R – discount or interest rateI – the cash flow periodPayment Function: PMTUsing the PMT function in Excel, you can calculate the loan's periodic payment. For example, using the PMT function, you can compute payments for a loan based on the loan amount, Number of payments, and interest rate.Payment Function =PMT (RATE, NPER, PMT, [PV], [TYPE])If you are an accountant, tax professional, or financer, Future Value, Present Value, Net Present Value, and Payment can be helpful for you. At Excel Platform, professionals can learn more about these financial functions available in Excel.Come and join us today for more amazing financial functions!
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23
May

How To Protect Excel Documents & Set Passwords in Excel Spreadsheet?
  • David Ringstrom
  • 431
How To Protect Excel Documents & Set Passwords in Excel Spreadsheet?Your laptop or cloud folder is probably full of Excel and Word files if you regularly work with Microsoft documents. Passwords should be used for sensitive, confidential documents and files. Thus, learning how to password protect Excel worksheets is essential if you want to secure your Excel data.This article will learn how to protect our Excel documents by adding a password. We will also learn a few amazing tips for protecting Excel files with this.Let's begin...How to Protect Excel Documents?Excel is one of the best tools used by businesses of all sizes to create and expand on large-scale worksheets, often in a template or database format, to build and expand data collection. In addition, most people store their financial budgets, projects, and other related information in spreadsheets. And, for all this, it is quite important to ensure that your data is safe. But how? Add a Password to Excel Files!Set a password for your Excel file before creating a new file, whether a standalone spreadsheet or one that links to other reports and documents. Prior to creating graphs or other documents related to the input of information, you need to perform this process. With a password set up for xls, you'll be able to prevent unauthorized access to your data.How to set a password in Excel online?Excel spreadsheets can easily be protected with a password via the document's settings! It is possible to password-protect documents in most editions of Excel even if you do not have the latest version.Follow the following steps to set a password in Excel 2010/2013/2016Open The Excel document.Click on "File." (This option is at the top left corner)Click Protect WorkbookClick on "Encrypt with Password."Type the password. Make sure that you will not forget this password.Click OK.Re-enter your password.Click OK.Save the document and close it.Re-open your document.Enter the password.Click OK.If you want to set up password protection on a document, you have already created:Open the Excel file or create a new one.Choose File, then choose Info from the menu to add a password to Xls.Select the Protect Workbook option in the drop-down menu, then choose Encrypt with Password.Once you've created your password, you'll encrypt your File. Make sure you create a strong and complex password that can't be easily cracked.You should share the password with people you plan to share your document confidentially. Quick hacks for Protecting Excel FilesUsing a password is an excellent way to ensure that your Excel worksheets are protected with limited access, but if you wish to further secure the data in your files, you can take the following steps:Make sure that sections of your worksheet are protected from being edited or changed to maintain consistency. If you have linked your spreadsheet to another that relies on formulas and current information, performing this step is extremely crucial.Passwords should be changed frequently, and password managers should be updated. If an employee's access to company files changes, a quick password update will ensure only current employees can access these files.Set different permission levels for "view" and "edit" following the user's ability to make changes and who is only allowed to view the document. When someone or a team needs only to view a file, the "view" level is adequate since the person or team does not need to alter the data.Protecting Excel documents is quite necessary. And, if you are looking for more Excel updates, then visit our site and get complete information and deep learning about Excel. 
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19
Apr

How To Replace Cell Formats In An Entire Excel Workbook?
  • David Ringstrom
  • 868
An entire Excel workbook may need to be reformatted if worksheets are changed independently.Isn’t it frustrating when it takes so long to format your Excel documents? The good news is that you do not need to keep applying the same formatting styles every time. Instead, it is easy to format multiple sheets at once using a few simple tricks.This post demonstrates how to format a whole workbook within minutes to work effectively and be more productive rather than working hard. Let's just study this with an example.In the current economic climate, people are embarking on economic drives to save money in the workplace and at home, with utility companies announcing drastic price increases and petrol prices at an all-time high.Similarly, the firm of Waste-Knott & Wantnott has instituted strict measures to cut costs across the board. After calling an all-staff meeting, the manager asked everyone to think about their actions a little more carefully. Do you really need to do what you are doing? He said. "Do you have to make that phone call? Can't you send an email instead? Is it necessary to keep the light on in the stationery cupboard when no one is there?".Over a year, making small daily savings would add to substantial savings.Saving money by not wasting printer’s inkOne employee decided to print an Excel worksheet with the new cost-saving attitude in mind. He spotted one of the posters just as he was about to click Print, prompting him to think. It is interesting to note that all of the column headers and totals in the Workbook were bold even though he was printing it out for reference purposes only. Ink would be wasted if he printed these as they were, so he changed all the bold entries to regular type. But, have you ever wondered what if this Workbook had twenty-seven worksheets? Is it possible to change or format the entire workbook?Yes! Now, you can easily change the entire workbook!Changing the formatting of an entire workbook would take more time than changing the formatting of each worksheet individually in Excel. All versions of Excel from 2003 onwards follow the same process.For example-1: The employee could have removed the bold font from the Workbook by taking the following steps.Step 1: Click Ctrl + H to open the Find and Replace dialogue box on the Workbook.Step 2: Click the Format button instead of typing into the Find What box. That will bring up the Find Format window.Step 3: Choose Bold on the Font tab.Step 4: Click OK.2: Replace the common wordsStep 1: Select Regular from the list in the Find and Replace dialog box and click OK.Step 2: A dialog box will appear where you can search for and replace common words.Step 3: Select Workbook from the Within options before clicking Replace AllExcel has now been instructed to replace all bold types with regular ones throughout the Workbook.The dialog box is well worth exploring. A vast array of formatting options are available under all tabs. Make your Workbook stand out by applying patterns or borders.This application has the advantage that once you learn how to perform one task, such as the one above, you can often perform several similar tasks using the same method. Professionals can gain a working knowledge of Excel fairly quickly, as the learning curve is less steep. You will always be in demand if you can use Excel effectively, so why not find out just how versatile it can be? For more tricks about Excel Tool, read our article!
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21
Mar

Why Should Accountancy Firms Provide Microsoft Excel Training To Employees?
  • David Ringstrom
  • 856
We can’t deny the massive change in CPAs' working styles from the 20th century to the 21st century. With every passing year, companies are adopting new ways of working. Employees are moving towards smart working. They are using software and tools to work efficiently.Have you ever thought, is it right to completely rely on software? Or are these tools really effective to use in any big accounting firm? You might be a little bit confused. But, No Worries!The discussion of the article is based on: Understanding the use of Microsoft Excel to an accountant and why companies should provide training about excel to their employees.How Microsoft Excel is increasing the efficiency of an accountant?A thorough understanding of Microsoft Excel is essential to an accountant's career development. There are many reasons that prove that Microsoft Excel is the right and the most effective tool for any accountant. Here are a few:1: It increases proficiency.2: Excel has numerous functioning and features including:You can use formulas like – Sum, Multiply, Average, and many more.You can easily sort the data.You can easily fetch the data.You can store huge data.Excel helps in managing data in an ordered form.3: Easily share your data with others over the internet.4: Track your edit details and many more.Why Excel Training is Essential for Accounting employees?If you want to explore why Excel training is essential for your employees, then you might want to first understand why training is one of the most critical activities in your company. In an ever-changing economy like ours, you have to give quality employees training time. With this, proper attention is important to ensure your organization is consistently successful and competitive.Additionally, employees will be enthusiastic about learning. They attract an environment that promotes problem-solving capability in the workplace. This allows employees to perform their jobs efficiently and produce high-quality results. For example, when companies provide training opportunities consistently, employees are more likely to be satisfied. Educated employees will contribute to the company's success.Time and ProductivityA well-trained employee will produce better results in less time, with the work completed the first time correctly. This will lead to better results for the company. Having less repetition allows your organization to produce services and products satisfactorily. A good indicator of which training is necessary is how difficult it is for your employees to master a task.A mentor is an employee who understands these challenges and opportunities, not as obstacles that need to be overcome. It could be useful to pair a mentor who has experience in a particular area with someone who can grow and learn from their experience. Additionally, you can shadow team members on specific projects and assignments and take education courses offered in-house or by trusted outside providers.In order to put these general ideas into perspective, try applying them to Excel training since it has become a standard tool, both for personal use and in the business world. By using this spreadsheet icon proficiently, productivity can be considerably improved, and employee confidence.Reducing MistakesExcel training can reduce errors, such as lost data, and make your employees more efficient. Accurate and timely data is one of the most important advantages of Excel training. By using these tools properly, your employees and you will be able to track costs and see trends within the industry.Spreadsheets can certainly make it easier to find and use information when you need it. But unfortunately, some companies waste time looking for data, which could better be spent on making decisions based on the information. Excel's reporting features and summaries are some of its best features.Additionally, the software can be used as part of an overall presentation plan for your organization. With good training, you can learn to use Excel documents to prepare data and use graphs and charts to engage your audience in a presentation. This can be an invaluable tool for your company or organization if used correctly.If you are searching for the best training sessions for your employees, we welcome you to attend Excel’s webinars. At Excel Accountant Platform, you will get to learn about the amazing Excel tips and tricks that will help you in spreadsheets. Come and join us today for more updates and learning! Visit Now
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20
Feb

How Can Excel Make Your Business Run More Successfully?
  • David Ringstrom
  • 99
Excel is an accountant's best friend for managing basic accounting tasks (such as balance sheets and ledgers). But, can Microsoft Excel still live up to the hype in a world of innovative technologies?Yes, and it completely depends on the requirements of your accounting and finance firms.Excel is the tool that you need to standardize the process of work and quickly complete the task.Throughout this article, we will discuss the following points regarding the use of Excel in small businesses.·       Why do small businesses use Excel?·       What are the benefits and features of Excel?Why do small businesses use Excel?Using Excel for small-business accounting has changed considerably over the past few years, so before we dive into its features and benefits, it's important to comprehend how Excel's use has changed.Small business finance managers continue using Excel as one of their most common accounting tools. Small businesses usually have fewer financial data and use less of it than large corporations, so Excel allows them to focus on basic accounting activities, such as budgeting and forecasting.What are the benefits and features of Excel?Analyze financial datasets:This application helps you compare financial datasets like total accounts, payables, and receivables to calculate cash flow volume. Keeping track of recurring costs can give you a better idea of your business's finances. You can segment customers by size, location, or purchase to see which groups generate the most revenue.Create customized reports:Using template-based reports (including charts and tables) for tasks such as invoicing and estimating cash flow volumes. Customizations can be made to the reports as desired (such as adding multiple/different state sales tax rates) without requiring a new template.Automated data entry:Data entry is automated via macros in Excel (e.g., copying data from a primary source into a spreadsheet). It is possible, for example, to create a macro that will export invoice-related data from your CSV file and populate your Excel sheet with the applicable invoice management template.Key Excel features for small-business accounting:Based on the selection of cells in a table, pivot tables summarize complex datasets within Excel's "Insert" tab. Once filtered, the data within the pivot table can be viewed.Excel's "What-if analysis" feature lets you forecast results by varying datasets within a formula. Find it under the "Data" menu. This feature lets users modify data without removing it from the main dataset and testing new results.Using forecast sheets, users can forecast data trends based on historical values, which are available in the same menu as "what-if analysis". Instead of simply changing the value of a cell, a trend is predicted in a graphical format.4 Recommendations for using Excel for small-business accountingConsider these points if you use (or intend to use) Excel for accounting in your small business.1.     Ensure that Excel is the program you want. Do not forget that there are other accounting and spreadsheet options if this article is too complicated or not quite what you're looking for.2.     Learn about the templates offered by Microsoft. If you need an accounting or bookkeeping template, you can find them online by searching for Microsoft's offering. View Microsoft-customized Excel sheets here. You can easily customize the template according to your needs (e.g., estimating your budget monthly vs. quarterly, adding pivot tables, and including your logo).3.     Use online resources to guide you through the template-building process. Learn how to create and/or use a template from start to finish by viewing online articles and videos. In addition, Excel's interface will be explained, you'll learn additional functions you may want to use, and you'll have hands-on practice before using your data.4.     It is advisable to practice using Excel for accounting tasks, such as cash flow management, by learning from prefilled datasets. Practice makes perfect. Once your template is finalized, it is advisable to practice using it by bringing in prefilled datasets to ensure that you understand how it works before entering your data.Are you already using Excel and want to upgrade your Excel working skills? You landed at the right platform. Here, we will provide you with the best ways to use Excel.  
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24
Jan

How To Create Error Message Alert in Excel
  • David Ringstrom
  • 953
Summary: This post aims to explain how to create Microsoft Excel data validation custom messages to help people enter worksheet data correctly and show special error messages to help them fix invalid entries without being frustrated.-----------It is no secret that almost all certified public accountants use Excel on a daily basis. Excel is an invaluable tool that allows accounting professionals to work with complex data sets and communicate vast amounts of information to clients and co-workers.But, you can’t deny that working with huge and complex data with multiple sheets can lead to errors and a significant time suck. However, Excel allows users to define custom input or error messages to prevent data entry errors. Imagine that you're responsible for creating, maintaining, and assigning usernames and passwords for your company's employees. You can easily accomplish your task using an excel spreadsheet. After that, you transfer the data to your colleague. At this point, someone else needs to handle this.So, how will he/she manage the data? The best way to ensure the job is done right is to create input and error messages using data validation.  What are Data Validation Messages?Data validation allows you to display instructions to your spreadsheet users.Types of Validation messages:When a cell is selected, an Input Message is displayedAn Error Alert can be displayed if invalid data is entered in a cellHow To Create an Input Message?When the cell is selected, an Input Message can be displayed to help people know what data should be entered.Here's how to display a short message when a cell is selected.Validate the data in the selected cellsSelect the Data tab from the RibbonClick Data Validation under the Data Tools groupPick the data validation options from the Settings tabChoose the Input Message tab, then check the box next to Show input message when the cell is selected.In the Title box, type the headline of your message. At the top, the heading text will appear in bold.In the Input message box, type a short message. You can create line breaks if you want them by pressing the Enter key.For help adding an error alert, click OK or follow the steps below.You will now see the Input Message when you click the cell.Point To Note: The limit of message text is 255-character What Are The Data Validation Error Alerts?The Error Alert feature of the cell is automatically turned on when you add data validation.People cannot enter invalid data in the data validation cell by default because of the error alert settings.Excel displays its default error message if you try to enter an invalid value into a cell with those default settings. It includes the following:Title: Microsoft ExcelIcon: Red circle with white XText: This value doesn't match the data validation restrictions defined for this cellButtons: Cancel, Retry, Close, HelpIn the data validation error message, the following will happen when you click any of the command buttons or on the Close button.Retry: Click on the Retry button to close the message box. You may type a different value in the validation cell contents by selecting them and typing it in.Cancel/ Close: Click on the Cancel button to remove Data validation cell contentsHelp: Click Help button to stay the message box open. The web browser will automatically open the Data Validation page on the Microsoft website.You won't be able to enter the invalid data with that default message, but it doesn't disclose why the data is invalid. Refer to the sections below for more information about changing the error alert message and settings.Show Error Alert SettingIf data validation is enabled by default, you'll receive an alert when you enter invalid data. These steps explain how to disable this setting.You will need to select the cells you would like to apply data validation.Select Data Validation from the Ribbon's Data tabSelect the Error Alert tab within the Data Validation dialog boxIn Excel, you can easily create error messages using this method.If you want to learn more about excel or how to create an error message alert, please visit Excel-Accountant. Here, you will get live webinars and other study materials that will help you to sharpen your skills.Register now for the latest updates!
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