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.
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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 entry
- Data management
- Financial analysis
- Charting and graphing
- Time management
- Task management
- Financial modeling
- Customer relationship management (CRM)
- Almost anything that needs to be organized!
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:
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 tailored toward performing specific tasks, the strongest point about Excel is its robustness and openness. Excel models are as powerful as the analyst wishes them to be.
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 CFI resources will be helpful: