Enrollment for the FMVA™ Certification Program is now OPEN!

Excel Definition

The ultimate software tool for financial analysis.

Microsoft Excel Definition

Excel definition: a software program created by Microsoft that uses spreadsheets to organize numbers and data with formulas and functions. Excel analysis is ubiquitous around the world and used by businesses of all sizes to perform financial analysis.

Check out CFI’s free Excel Crash Course here!

 

Excel Definition - learn in CFI's free Excel course

 

What is Excel used for?

Excel is typically used to organize data and perform financial analysis.  It is used across all business functions and at companies from small to large.

The main uses of Excel include:

 

Data functions, formulas, and shortcuts

The Excel software program includes many functions, formulas, and shortcuts that can be used to enhance its functionality.

We have defined the key functions and formulas below in our Excel guide:

 

Shortcuts define Excel use!

 

Financial and accounting uses

Excel is used extensively in finance and accounting functions.  In fact, many organizations run their entire budgeting, forecasting, and accounting functions entirely out of Excel spreadsheets.

While Excel is defined as a “data” management tool, the data that is most commonly managed is financial.  At CFI, we would define Excel as the ultimate financial software. While there are other pieces of financial software that are certainly tailored towards specific tasks, the strongest point about Excel is its robustness and openness. Excel models are as powerful as the analyst wishes it to be.

Accountants, investment bankers, analysts, and people in all types of financial career paths rely on excel to perform their daily job functions.

 

Additional resources

Thank you for reading CFI’s Excel Definition article.  As we define it, Excel is one of the most powerful accounting and finance tools with the most widespread use.  To keep learning and developing your career, these additional resources will be helpful:

Free Excel Tutorial

To master the art of Excel, check out CFI's FREE Excel Crash Course, which teaches you how to become an Excel power user.  Learn the most important formulas, functions, and shortcuts to become confident in your financial analysis.  

Launch CFI’s Free Excel Course now to take your career to the next level and move up the ladder!