Microsoft Excel has a great application in Financial Accounting. A lot of tasks are 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 by accounting professionals, can be accomplished quickly and accurately.
MS Excel can perform calculations or computations much faster, the only thing that is required to insert in the particular cells arethe 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 of supporting the accounting professionals in performing their accounting related calculations, computations as well as in making journal entries. Just to give an example, there are events 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 manually, but the same task can be accomplished within a few minutes. Just right after you insert the formula andcopying it to required rows or columns, you can get results.
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, such as, preparing Journal, ledger, schedules or other tables can be performed with the help of excel in an easy and efficient manner. In this way, it is very much important for accounting professionals to have a mastery of excel to carry out their tasks successfully. Those who do not have a reasonable knowledge of Microsoft Excel may face problems in performing their assigned activities.
K.A.Fareed (Fareed Siddiqui)
Writer, Trainer, Author, Vba/Vb Developer
Individual Member of Institute of Management Consultants of India
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