For my second tutorial blog, I have decided to blog about the basic functions which can be found in Excel and how these simple functions can provide to be so useful to understanding a business’ operations.
To begin, Excel is an electronic spreadsheet program that allows users to organize data and be able to perform calculations by entering constants and variables into pre-defined formulas.
Excel comes with many different functions which are grouped into categories. Examples are Financial, Date & Time, Logistical, Database, Text, Statistical, etc.
When it comes to crunching numbers in businesses, there are many simple, yet very effective, financial functions that are used to alleviate the strenuous task of organizing large amounts of data.
For example, let’s say that your boss gives you a large spreadsheet containing customer’s data, but in our example, we will be using a smaller one that I have produced to be able to understand the formulas better. Every time a new customer was created, his or her contact information was added to the spreadsheet. Your boss wants to know how many customers there currently are. If the customers were designated by numbers (meaning if the relevant cells you wanted to count contained numbers), you would use the ‘COUNT’ function. This function will simply count how many cells have relevant data in them. If there is text in the selected cells, like in our example, you would simply use ‘COUNTA.’ This just indicates that our customers are recognized by names and not numbers. In our example, there are not many customers and you can count them manually to check the formula, but you can also use the formula for efficiency and convenience.
This tells us that there are currently six customers.
Now if by mistake you were to use the COUNT formula for cells containing textual information, you would get an answer of zero because there is no numerical data in the cells. Be sure to note in the formula bar that we have used the COUNT function for the same range of cells rather than using COUNTA.
To find the sum of all the visits combined, you would use the SUM function under the Visits column. The SUM formula is very easy to manipulate for any cells you would like to sum up the numbers contained in them. You would type in ‘=SUM(cell range)’. Just select the desired cell range you would like to add up.
The formula shows us that there were a total of 51 visits made by all of the customers. If you wanted to find the average number of visits that were made to the store by each customer, you would insert the same selected range of data, this time into the average formula.
We can see that an average of 8.5 visits was made to the store. With a larger selection of data, the average may not come out as such a pretty number as the one we have in our example. There is an option where you can select to increase or decrease decimals by using the two buttons found at the top of the Home ribbon, in the Number options.
To go just a bit further on this, what if your boss wanted to start a new program giving customers who come in often a special discount but he wanted that to be constrained to only certain customers who come x amounts of times in a month. To find the maximum number of visits of visits, you can use the MAX formula.
=MAX(selected range)
If you wanted to find out what the least number of visits a customer made, you would alternatively use the MIN formula.
=MIN(selected range)
To conclude, this is just a basic tutorial on how one can use Excel to start managing their business. The formulas are very easy to manipulate and provide powerful information that helps managers understand more about their business. There also are hundreds of more ways Excel can be used to help run a business, but in order to keep my tutorial blog, well, a blog and not a manual, that will all have to be excluded from this. I hope that I have shown you at least some basic functions that will help you get started on managing your business.