Every business needs a platform to record, store, and manage its data. Many companies use spreadsheets to organize and present their data. Microsoft Excel is one of the most popular spreadsheet programs because of its features. Additionally, it’s easy to convert other file formats to Excel. For instance, with a few clicks, you can easily convert PDF to Excel.
There are many spreadsheet programs out there. The question is, why should you use Excel files for your business? Here are the reasons why Microsoft Excel should be an integral part of your organization.
Store Client and Employee Information
The primary function of Microsoft Excel is to store and structure your data. You can categorize your cells into the data type of your choice, and these cells can refer to other cells by using formulas. Business owners can use Excel as the storage of their customer information. It can serve as their database that they can easily pull up.
Business owners may use Excel to store their employees’ contact information. You can put essential categories in the columns or rows such as name, personal email, mobile number, emergency contact, among others. In addition, you have the option to use sheets for categorization such as active employees, separated employees, and applicants. Thus, MS Excel is an effective way to organize information about the people vital to your business.
Managers should always ensure that their team members are keeping up with their tasks. One of the tasks of managers is to delegate tasks and set deadlines to their team members. Failure to do so results in a lousy output of the team. This would highly benefit productivity and efficiency within the group.
A practical way to organize work assignments is by delegating the tasks in Excel. For example, you can mark the cells by color for easy classification and determine updates in the tasks you assign. You can also use Excel to assign work schedules to your team.
Business operations carry heavy logistical work. There’s inventory, supplies, schedules, important meetings, and a lot to do on a business’s day-to-day operations.
Microsoft Excel makes work easier for small, and to some extent, large businesses in terms of operations management. A spreadsheet can track and analyze a lot of the daily operational work. The tool is also user-friendly and low-tech, so any employee can quickly learn how to use it.
Apart from supporting the logistics side of the business, you can also rely on Microsoft Excel for clerical tasks. One does not have to learn the complicated features of Excel. For example, you can use Excel for creating invoices, payslips, and other administrative output.
Business and Data Analysis
It’s normal for businesses to collect data daily, whether sales, expenditures, contact information, and whatnot. Business and data analysis is probably the most efficient use of Excel in a business. The purpose of collecting data is to convert it into insights and analyses that will be helpful for your business. It means translating the data to information that can contribute to the decision-making in the business.
Once you enter data in the spreadsheet, it can quickly perform calculations and analytical tasks, such as computing for profits and performance evaluation. For instance, you can create a report on your weekly sales. Let’s say you have noticed a trend that the sales are at their peak on the second and fourth week of the month. You can decide to lower the production rate every first and third week of the month and increase it every second and fourth week of the month based on your historical data.
Basic Accounting and Finance
Small businesses can use Excel for their financial activities. Microsoft Excel is a great platform to track their transactions. In addition, it lessens manual labor because you can use formulas when needed, as compared to jotting down notes and manually computing using a calculator. Another excellent thing about using Excel is your data since you can easily create comparisons by creating graphs. For instance, you can analyze profit and expenditures quickly by creating a comparison chart.
Business Presentation and Planning
Now that we’ve mentioned the graphs and charts in Excel let’s focus on how it allows for data presentation. Raw data is an eyesore, especially if you have lots of numbers that can be confusing. Just imagine presenting a spreadsheet with thousands of rows or columns to your business partners and clients. It’s not presentable and insightful.
With Excel, you can turn your raw data into a visual presentation with the multiple graphs and charts it has. With a few simple clicks, you can make visualizations from your data. This gives business owners insights into their data that they can use for business meetings too.
The data visualization from your file is also a reference you can use for business planning. First, you can interpret where your business is currently at, emphasizing where you can improve on. Second, you can make use of these findings for future planning. Finally, the current performance of your business could give you an idea of your future standing.
Let’s say you effectively use Excel to track your sales. Looking at how your business performs currently, you can set up meetings to discuss the progress of your business. You should also discuss what could have been better and how to further increase your sales based on your data.
It’s almost impossible to run a business without spreadsheets to store information. As one of the most known spreadsheet tools, Microsoft Excel does actively contribute positively to many companies. Its features and user-friendliness played a significant role in its popularity.
Business owners can perform many crucial tasks in Excel, such as keeping records, business analysis, basic accounting, and operations management. Microsoft Excel makes work efficient not only for the business owners but for their employees. Learning Excel is an excellent investment because it can save you time from manual labor in the long run.