Introduction :

Microsoft Excel is a spreadsheet developed by Microsoft for Windows, macOS, Android and iOS.
It features calculation or computation capabilities, graphing tools, pivot tables, and a macro
programming language called Visual Basic for Applications (VBA). Excel forms part of the
Microsoft Office suite of software.

Microsoft released Excel in 1985 under the name Microsoft Multiplan. Microsoft’s spreadsheet
program competed with similar products at the time, including Lotus 1-2-3 from the Lotus
Development Corp. Initially, Multiplan lost popularity on Microsoft Disk Operating System (MS-
DOS) systems when competing with Lotus 1-2-3. Two years after its initial release, in 1987,
Microsoft introduced Excel version 2.0. By 1988, this new version, now on Windows platforms,
began to outsell Lotus 1-2-3 and other similar spreadsheet programs. In 1990, Microsoft
released version 3 of Excel, with features such as toolbars, 3D charts, and drawing and outlining
capabilities. Version 4 came along two years later and added the auto-fill function. In 1993,
version 5 of Excel was released. This version included Visual Basic for Applications macros,
which enabled regular tasks to be automated. One of the next big updates to Excel was version
12, which was released in 2007. This update used a new Ribbon menu system. Improved
functions included a SmartArt set of diagrams, better management of named variables and
more flexibility for formatting graphs. Excel moved to using the more structured and open XLSX
files as well. Version 15 released in 2013 included new tools such as Power View, Power Pivot
and Flash Fill. This version also improved multithreading capabilities. The current version of
Excel, version 16, was released in 2019.

Excel terminology and components :

Excel has its own terminology for its components, which new users may not immediately find
understandable. Some of these terms and components include the following:

 Cell : A user enters data into a cell, which is the intersection of a column and row.
 Cell reference : This is the set of coordinates where a cell is located. Rows are horizontal
and numbered whereas columns are vertical and assigned a letter.
 Active cell : This is the currently selected cell, outlined by a green box.
 Workbook : This is an Excel file that contains one or more worksheets.
 Worksheet : These are the different documents nested within a Workbook.
 Worksheet tab : These are the tabs at the bottom left of the spreadsheet.
 Column and row headings These are the numbered and lettered cells located just
outside of the columns and rows. Selecting a header highlights the entire row or
column.
  Formula : Formulas are mathematical equations, cell references or functions that can be
placed inside a cell to produce a value. Formulas must start with an equal “=” sign.
 Formula bar : This is the long input bar that is used to enter values or formulas in cells. It
is located at the top of the worksheet, next to the “fx” label.
 Address bar : This bar located to the left of the formula bar shows the number and
letter coordinates of an active cell.
 Filter : These are rules a user can employ to select what rows in a worksheet to display.
This option is located on the top right of the home bar under “Sort & Filter.” An auto
filter option can be selected to show rows that match specific values.
 AutoFill : This feature enables users to copy data to more than one cell automatically.
With two or more cells in a series, a user can select both cells and drag the bottom right
corner down to autofill the rest of the cells.
 AutoSum : This feature enables users to add multiple values. Users can select the cells
they want to add and press the Alt and Equal keys. There is also a button to enable this
feature on the top right of the home page, above “Fill” and to the left of “Sort & Filter.”
 PivotTable : This data summarization tool sorts and calculates data automatically. This is
located under the insert tab on the far left.
 PivotChart : This chart acts as a visual aid to the PivotTable, providing graph
representations of the data. It is located under the middle of the insert page, next to
maps.
 Source data : This is the information that is used to create a PivotTable.

Advanced Excel capabilities :

More advanced tools in Excel include the following:

 TREND function . This tool is used to calculate linear trend lines through a set of Y or X
values. It can be used for time series trend analysis or projecting future trends.
Trendlines can be used on charts.
 VLOOKUP. The Vertical Lookup, or VLOOKUP function, can be used to search for values
in a larger data set and pull that data into a new table. VLOOKUP is a cell input
command that looks like =VLOOKUP(). The parentheses include the data the user wants
to look up, where to look for it, the column number with the value to return; or
optionally, the user can specify an Approximate or Exact match indicated by True or
False.
 Table Array. This is a combination of two or more tables with data and values linked and
related to one another. This is part of VLOOKUP.
 Col_index_num. Another value when creating a table array that specifies the column
from where data is being pulled.
  Range lookup. This value in VLOOKUP provides information closest to what a user wants
to find when nothing matches other variables. This is represented by a true or false
label. False gives the exact value a user is looking for and True gives results from a
variable data range.
 MAX and MIN functions. These functions provide the maximum and minimum values
from selected data sets. MAX is used to find the maximum value in a function tab and
MIN is used to find the minimum value.
 AND function. This function has more than one criteria set when searching variables. If a
variable matches the criteria, the value will be returned as true; if not, it will be returned
as false. The input for the function should look like this: =AND (logical1, [logical2], …).
 Additional functions for use in Excel include subtract, multiply, divide, count, median,
concatenate and other logical functions similar to AND, such as OR.

Uses of Excel in Business :

Excel is most commonly used in business settings. For example, it is used in business analysis,
human resource management, operations management and performance reporting. Excel uses
a large collection of cells formatted to organize and manipulate data and solve mathematical
functions. Users can arrange data in the spreadsheet using graphing tools, pivot tables and
formulas. The spreadsheet application also has a macro programming language called Visual
Basic for Applications. Organizations use Microsoft Excel for the following :

 Collection and verification of business data;

 Business analysis;
 Data entry and storage;
 Data analysis;
 Performance reporting;
 Strategic analysis;
 Accounting and budgeting;
 Administrative and managerial management;
 Account management;
 Project management; and
 Office administration.

Benefits of using excel in business :

Improve Productivity : Analyzing data is vital for any business that wants to succeed today.
There is more data than ever, and you can be sure that your competition is making the most of
it. Using Excel for your small business means you can more efficiently analyze this information.
Adding information to spreadsheets allows you to sort, filter, and input your information
quicker than you could otherwise.
Visualization of Data : While it’s possible to analyze your information with text, it isn’t always
ideal. Many people work better when they see visuals. Excel makes this easy. One of the Excel
benefits that companies often overlook is the ability to generate charts and graphs. These
visuals will give your team a quick overview that allows them to understand the data in your
spreadsheets.
Online Collaboration : Spreadsheets have come a long way over the past decade. You used to
rely on computer desktops to run this software. While this worked great for the time, it did
have limitations when it comes to sharing. One of the best Excel for businesses benefits today is
the ability to work on your spreadsheets in the cloud. Your team can access your spreadsheets
from anywhere in the world. With remote work on the rise, it’s an investment worth
investigating.
Keep Data Consistent : There’s nothing worse than having data in different formats when you
analyze it. Your data needs to be in the same data format if you want to do a proper analysis.
This includes dates, currency, and decimal places. Excel allows you to do this by setting a base
format for each data column. You set your preference in your column settings, and Excel will
apply the same data format to each value in the column.
Connect to External Data : Databases and other data storage mechanisms are common today.
Even small businesses can use them with other software they use. The question is, can you use
this data in other applications? One of the best Excel hacks for your small business is connecting
to other data sources. Instead of manually inserting data in your spreadsheet, you can connect
to another database and automatically import your information. This feature saves your
company the money you would spend hiring a developer to create custom reporting.