In order to manage data manipulations like arithmetic operations, spreadsheets like Microsoft Excel use a grid of cells arranged in numbered rows and letter-named columns. It has a variety of built-in functionalities to address financial, engineering, and statistical requirements.
Additionally, it has a very limited three-dimensional graphical display and can present data as line graphs, histograms, and charts. Data can be divided into sections to show how different things affect it from various angles (using pivot tables and the scenario manager). A data analysis tool is a pivot table. This is accomplished by using PivotTable fields to condense big data sets.
It features a programming component called Visual Basic for Applications that enables users to apply a wide range of numerical techniques, such as those for solving differential equations in mathematical physics, and then send the results back to the spreadsheet.
The spreadsheet presents itself as a so-called application, or decision support system (DSS), via a specially designed user interface, such as a stock analyzer, or more generally, as a design tool that asks the user questions and provides answers and reports. It also has a variety of interactive features that enable user interfaces that can completely hide the spreadsheet from the user.
In a more complex implementation, an Excel application can automatically query outside databases and measuring devices in accordance with a schedule for updates, analyze the data, create a Word report or PowerPoint slide show, and send out these presentations on a regular basis to a list of participants. Excel wasn’t intended to be a database.
Typical Excel use cases
Excel is most frequently utilized in professional contexts. It is utilized, for instance, in operations management, performance reporting, human resource management, and business analysis. Excel uses a sizable group of prepared cells to arrange and edit data as well as perform mathematical operations. Utilizing formulas, pivot tables, and graphing tools, users can arrange data in the spreadsheet.
Microsoft Excel is used by businesses for the following things:
- Data collection and verification
- business analysis
- data input and storage
- performance reporting
- strategic analysis
- accounting and budgeting
- administrative and managerial management
- account management
- project management
- office administration are all examples of business data processing.
How to Calculate Annual Sales in Excel
To determine the annual revenues of your business, you don’t need to master a challenging Excel function. The SUM function of the program returns the sum of all values found in a particular cell. A range of cells representing the 12 months of the year, for instance, may be used as an example of a range of cells in which the function could sum the values of each cell in turn. To use the program to calculate your annual sales total, you only need your monthly sales data.
- Step 1: Open a new spreadsheet and type the names of all the months of the year in the cells marked A1 through A12. Put “January” in cell A1 and “February” in cell A2
- Step 2: Fill in cells B1 through B12 with the total sales for each corresponding month. As an illustration, enter the sales for the month of January in cell B1 and the sales for the next month in cell B2.
- Step 3: Type “Annual Sales” in cell A13 and “=SUM(B1:B12)” in cell B13.
- Step 4: Press the “Enter” key. The range of values are added by the SUM function, which then displays the annual sales figure in cell B13.