Excel Functions for Data Preparation: Glossary of Terms

Written by Kelly Bailey

Reviewed by Jeff Schmidt

Read Time 6 minutes

What Is Data Preparation in Excel?

Data preparation in Excel is the process of cleaning, organizing, and structuring raw data so it’s ready for analysis or visualization. Excel provides specialized functions that automate this work, ensuring accuracy, consistency, and usability across workbooks. Examples of useful Excel functions for data preparation include FILTER, UNIQUE, SORT, and TEXTSPLIT.

The following glossary explains the Excel functions that make data cleaning faster, more accurate, and more efficient.

Excel Functions for Data Preparation

Excel includes powerful functions that help you clean, reshape, and organize data for reporting and visualization. These functions remove duplicates, sort values, extract subsets, and reorient data layouts, creating cleaner, more usable datasets.

Change Source

Change Source is an option that lets users update or redirect the source file of an existing workbook link. When a shared dataset is moved or updated, you can use Change Source to reconnect your workbook to the correct file without rebuilding links manually.

Data Validation

Data Validation is a feature in Excel that restricts the type of data or values that can be entered into a cell. You can set rules to allow only dates, numbers within a range, or specific text options, reducing input errors and keeping your dataset clean.

FILTER Function

FILTER is a function in Excel that extracts data matching specific criteria from a range or array. You can use it to isolate transactions from a certain region, department, or time period. When the source data changes, the filtered results update dynamically.

Queries and Connections

Queries and Connections is a panel in Excel that manages imported data and external workbook connections. You can use it to pull data from databases, text files, or web sources and refresh those connections. Queries and Connections is ideal for maintaining real-time data accuracy across multiple files.

SORT Function

SORT is a function in Excel that organizes data in ascending or descending order based on one or more columns. Sort can dynamically order a list of customers by revenue or reorder product SKUs alphabetically, saving you from manual sorting as data updates.

SUBSTITUTE Function

The SUBSTITUTE function in Excel replaces specific text within a cell with different text. You can use it to correct systematic errors, standardize abbreviations, or remove unwanted characters from imported data. For example, SUBSTITUTE can replace all instances of “N/A” with blank cells or convert regional date separators to a standard format.

Table Tool

The Table Tool in Excel converts a range of data into a structured table with formatting and automatic expansion. Excel tables make it easier to filter, sort, and analyze data. When you add new rows or columns, Excel automatically extends formulas and formatting, ensuring the dataset stays organized.

TEXT Functions

TEXT functions are a family of Excel functions that manipulate text strings, such as LEFT, RIGHT, and MID. LEFT extracts characters from the beginning of the text, RIGHT extracts from the end, and MID extracts from any position within the string.

TEXTSPLIT Function

The TEXTSPLIT function in Excel divides text into multiple cells based on a delimiter. You can use it to separate comma-separated values, split addresses into components, or parse data imported from systems that combine multiple fields.

TRANSPOSE Function

TRANSPOSE is a function in Excel that switches the orientation of data from rows to columns or columns to rows. TRANSPOSE is especially useful when reformatting exported data or reorganizing datasets for dashboards and pivot tables.

TRIM Function

TRIM is an Excel function that removes leading, trailing, and extra spaces from text entries. When importing data from external sources, hidden spaces often cause matching errors or prevent proper sorting. TRIM ensures consistent spacing by leaving only single spaces between words, making text data clean and reliable for analysis.

UNIQUE Function

The UNIQUE function in Excel returns a list of distinct values from a range or array. You can use UNIQUE to identify unique customers, remove duplicate entries, or create a clean list of departments for summary tables.

VALUE Function

VALUE is an Excel function that converts text that looks like a number into an actual numeric value. When data is imported from external systems, numbers are often stored as text, preventing mathematical operations and causing errors in Excel formulas. VALUE transforms these text entries into proper numbers, allowing you to perform calculations and aggregations correctly.

Watch Window

The Watch Window is a tool in Excel that monitors the value of selected cells while you work elsewhere in a workbook. It allows you to track key formulas or metrics in large spreadsheets without scrolling or switching between sheets, saving time during analysis.

Workbook Links

Workbook Links connect two or more Excel workbooks that allow data to flow automatically from one to another. When you update source data in one workbook, any linked reports or dashboards refresh as well, ensuring consistency across all connected files.

Recap: Excel Data Preparation Functions and Features

Data preparation transforms unstructured raw data into clean, organized datasets ready for analysis. Excel’s specialized functions and features eliminate duplicates, correct formatting errors, and standardize information before building reports, dashboards, or financial models.

FAQs: Excel Functions for Data Preparation

What is data preparation in Excel?

Data preparation in Excel is the process of cleaning, organizing, and structuring raw data so it’s ready for analysis, modeling, or visualization. It involves using functions like FILTER, SORT, UNIQUE, and TRIM to remove duplicates, correct errors, standardize formats, and organize datasets before analysis begins.

What Excel functions are used for data preparation?

Excel functions for data preparation include FILTER, SORT, UNIQUE, TRANSPOSE, TRIM, SUBSTITUTE, VALUE, and TEXTSPLIT. These functions automate cleaning, organizing, and transforming raw data for analysis without manual intervention.

What are Excel features for data preparation?

Excel features for data preparation help you manage, clean, and structure large datasets efficiently, maintain control over inputs, automate repetitive tasks, and link data across files with confidence. Examples include Workbook Links, Data Validation, the Table Tool, Queries and Connections, Change Source, Watch Window, and Workbook Links.

Ready to stand out with in-demand Excel skills? Explore CFI’s Excel Skills for Professionals Specialization equips you with practical skills to work confidently with data, build professional workbooks, and create impactful visualizations. Master formulas, functions, and dashboarding tools to deliver impactful analysis.

Discover Excel Skills for Professionals