Using Microsoft Excel for Financial Accounting

How to use Microsoft excel for financial accounting?

Using Microsoft Excel for Financial Accounting
Image Source -
Microsoft Excel has a great application in Financial Accounting. A lot of tasks can be accomplished by using Excel efficiently. It is a spreadsheet software application having rows and columns by which you can make use of various computations or calculations.

There are some basic functions and formulas that one needs to know and understand well in the beginning, so that the various tasks, that are supposed to be carried out in Financial Accounting process, can be performed quickly and accurately.

Microsoft Excel can perform calculations or computations much faster, the only thing that is required to insert, in the particular cells, are the correct formulas that are needed for the number of rows and columns in case of payrolls or various schedules. Subsequently, the formulas can be copied and pasted. In this way, excel will produce the intended results in the required number of cells in an accurate manner.

Excel is well suited and capable for supporting the accounting professionals in performing their accounting related calculations as well as making Financial or Journal entries. Just to give an example, there are times when you need to compute depreciation of required number of years for fixed assets that may be innumerable. In doing so, you need to take great pains if you do the task manually, but the same task can be accomplished within a few minutes. Just right after you insert the formula and copying it to the required rows or columns, you can get the results successfully.

It depends on an accountant’s knowledge and understanding about MS Excel.

If he has proficiency in excel, he can make his assigned tasks easier while producing the results efficiently. Almost all the activities relating to Financial Accounting, such as, preparing Journal, Ledgers, Schedules, Trial Balance, Income Statement, Balance Sheet, Cash Flow Statement or other tables can be performed with the help of excel in an easy and efficient manner. Therefore, it is very much important for accounting professionals to have mastery of Microsoft Excel to carry out their tasks successfully. Those who do not have a reasonable knowledge of Microsoft Excel may face problems in performing their tasks.There are various courses available out there, you can extract benefits attending the required course, so that you may gain good knowledge of Microsoft Excel and apply it in your day-to-day activities relating to Financial Accounting.

Let us know how you like this article. Like it and Rate it below.
265 0
0 stars - by 0 user(s)

Related Articles

Subsidiary books are those where one can easily note transactions of a particular category. It avoids wastage of time as the similar transactions are recorded in separate books, called subsidiary books.

Accounting is regarded as a Business Language. It is of great essence for a business to establish a good accounting system in order to keep track of every single business transaction or a business event and determine the profitability by dint of income statement and the status of a business with the help of balance sheet..

The process of Financial Accounting entails some essential functions. One of the main functions of financial accounting is recording.