From basic accounting to data management, MS Excel has indefinite uses. So if you are about to invest in an MS Office suite to scale up your accounting skills, it’s a good move to make. However, considering the Advantages and Disadvantages of MS Excel for business is what you need for accounting specifically.
Microsoft Excel, widely known as MS-Excel or just Excel, is a very versatile application software developed by Microsoft. This tool is used by around 90% of small and large-scale companies around the world. In the US alone, 731,000 companies rely on this accounting tool that comes with Office 365 suite.
MS Excel is available for Windows, Android, macOS, and iOS. It is often used to calculate data and for tasks that involve graphing information because it comes as part of the Microsoft Office Suite. Those who have used this tool before know that this is one of the most powerful applications from Microsoft so far.
Microsoft Excel is a powerful spreadsheet program that has been around since 1985. It's now the most popular spreadsheet software globally, with over 1600 million copies sold as of April 2016. With the world being more data-driven than ever, Microsoft Excel is one of the products that offer the tools to analyze that data differently. And while they can always limit themselves, it's worth noting that all this information is not limited to rows and columns amounting up to 100. It goes into the thousands.
But it's not without its flaws; it's time to identify some of the pros and cons of using MS excel for your business. However, it can be a bit difficult to understand for those who are new to it at first.
Whether you’re a student, business professional, or an amateur spreadsheet maker, Microsoft Excel is the go-to tool for all sorts of data analysis. From basic arithmetic to complex formulas and calculations, it can do just about anything you need your spreadsheets to accomplish.
As a result, there are more reasons than ever before to make Excel your one-stop solution for everything related to numbers on a screen. If you are a newbie, here are some advantages of MS Excel to check out on your way to working with rows and columns.
One of the advantages of MS Excel is that it has templates and macros. Macros allow a user to automate repetitive tasks to save time, while templates are preprogrammed files with placeholder data for easy use. A few common examples include:•Budgeting spreadsheets to prepare budgets by company division or department.•Expense report template for organizing receipts from trips or work meetings.•Vacation planner spreadsheet with tabs for months and days and notes sections for travel plans, packing lists, activities, etc.•Client prospect lists can be used when meeting new clients who may not have heard about your services yet.
This software program can help you create professional-looking presentations with slide layouts that allow for easy navigation between slides at the click of a button. Microsoft allows you to insert objects of one application into another, making it easier to place data between different tools.
In addition, slide transitions can be customized, so they change gradually from one image to another instead of being abrupt, which builds anticipation when used correctly.
One of the advantages of using MS Excel is that you have more control over your data. For example, each file can be password protected and only opened with a username/password combination, which means it's much harder for outsiders to access without authorization or accidentally opening up a spreadsheet containing sensitive information.
MS Excel also has very sophisticated security settings, so users don't accidentally erase lines of important notes in one click; they would need two clicks on the deleted text before action was completed. This way, there's no chance of accidental deletion if you don't notice what you're doing the first time around.
This software comes with various formulas and calculation features that make bookkeeping very easy for accounting professionals. For example, it's easier to calculate things like loans, time-related data such as days until the holidays or weeks left in the school year; statistics for sampling purposes such as average monthly expenses or budgeting numbers based on historical data; profit margins by using cost per unit (CPU) versus selling price per unit (SPU).
Another benefit of using MS Excel is that it can be accessed from any computer with a Web browser. This means there's no need to worry about being in the office when you want to access your spreadsheet. You neither have to save files locally on each device if they're all online.
Companies sharing an account and working together may also find this software more useful because multiple employees can edit a file simultaneously. You need not worry about saving over one another or formatting wonky text boxes by entering data incorrectly. You may also find sheer similarities between Google Spreadsheets and MS Excel.
Microsoft Excel is an excellent program for creating spreadsheets and graphs. It's a powerful tool, but it has its limitations too. Most of the problems with MS Excel are related to accounting. That's why many professionals prefer using advanced accounting tools such as Xero, Freshbooks, or Quickbooks. You may also have to deal with the following disadvantages of MS Excel if you have mastered it.
One of the main problems with MS Excel is that it can't handle more than a few thousand rows without slowing to a crawl. It also imposes limitations on file size. But there are ways around this, just as there are solutions for any issue of an app or software tool. The key thing is not to give up if you find yourself in one of these situations; instead, look at the tools available in Excel and use them creatively to have their intended effect.
Another Limitation of MS Excel is that it can be difficult to learn. This is because there are many different elements, such as formulas, functions, and keyboard shortcuts. However, this disadvantage may be alleviated with Excel tutorials for beginners or using templates to start quickly with a good learning method and regular practice.
This disadvantage is that there are different levels of difficulty when using MS Excel. For example, some people may be more comfortable with the idea of completing a quick task such as creating an inventory list for customers in order to replenish their shelves, while others may not know how to write formulas and create charts which could take up valuable time. You need to be well-versed with formulas properly and the syntax to avoid any errors.
One more problem with this software is that there are no quick autofill features. Lack of knowledge of how formulas work can be another painful experience for someone with basic knowledge.
Therefore, you'd require learning from within the interface itself; however, these disadvantages can also provide an opportunity for continued personal growth and development outside of just mastery over MS EXCEL skillset.
The most problematic of the disadvantages of MS Excel is that there are errors in calculations. For example, when working with fractions or percentages, the decimal point may be misplaced, and it would cause an error to appear on the screen.
This can make it difficult for someone who does not know what they are doing to fix this problem without assistance from an expert. Also, you'll have to know using the date and currency formats properly.
Conclusion on Pros and Cons of MS Excel
The efficiency of Microsoft Excel depends on what kind of task you intend to perform on this tool. In a nutshell, at what level do you want to use it. If your purpose is limited to its basic use, MS Excel is a go-to application. However, if you are an accounting professional, you may need to look for its replacement. Should you decide the rest by understanding the pros and cons of MS Excel for business and learning.
The most significant use of MS Excel is the capacity to carry out mass arithmetic computations. It can combine hundreds of numbers and simply repeat the operation if a value is modified or added with its vast program of formulae.
While it may help you get a better job or advance in your career, Excel can also analyze data in everyday life, such as when managing personal finances. Excel is a readily available helpful program in all aspects of life and should be considered essential for personal growth.
Collaborative work is not a feature of Excel. It's difficult to resolve or test issues with Excel. Excel is susceptible to fraud and corruption. Advanced pricing rules are tough to manage.
Excel can compute equations, model what-if situations, and assist with other complicated financial issues, but it does so in a lengthy and laborious manner. It needs a lot of manual data entry, which is time-consuming and often more complex than helpful.