Even as companies turn to comprehensive accounting information systems, Excel remains a vital tool. In fact, 63 percent of companies in the United States still see Excel as a crucial application for accounting professionals.
So when you’re hiring new accountants, it’s to your advantage to ensure they have at least basic and intermediate Excel skills. But what exactly should they know how to do with the program?
From its special finance formulas to detailed charts, Excel has an array of features that can be hard to sort out as the most essential. So read on to learn the five Excel skills accountants need.
1. Use Excel Formulas Proficiently
Any accountant should know Excel’s most useful formulas for VLOOKUP, conditional functions, depreciation, net present value, internal rate of return, and interest.
Such formulas can help save accountants’ time since they can select a range of data and get an automatic calculation. Even better, the results can be compiled into useful tables that both accountants and managers can use.
2. Properly Fill and Format Cells
Using Excel templates can help automate cell formatting and filling. But doing the process manually is still a must for accountants at times.
When cells have varied formatting for things like decimal places, currencies, and percentages, spreadsheets become harder to understand. Even worse, errors can happen with formulas, and accountants waste time fixing these issues.
So, accountants should know how to use shortcuts to fill and format cells quickly as well as understand the formatting options the software provides.
3. Perform Error Checking and Data Validation
Accountants may not always notice errors in numbers or formulas. But luckily Excel has auditing and data validation tools that can help.
Accounts must know how to use the Formula Auditing toolbar to trace errors in formulas. They also need to make sure of data validation so that only the right kind of data will be allowed in a field.
Fixing such issues is especially essential if a company plans to convert Excel spreadsheets to another format.
4. Make Common Types of Charts and Tables
Must-have Excel accounting skills also include making pivot tables, scatter plots, trend lines, and time series charts. Such skills require knowing how to break down data for use in charts, select appropriate data, and label charts effectively.
Accountants also need to make such charts attractive and easy for business decision-makers to understand. The application’s design tools and shortcuts can make this process easier.
5. Use Analytical Tools
Some intermediate Excel skills to know to relate to using the what-if analysis and solver tools. Accountants should feel comfortable running different scenarios in these tools and interpreting the results.
They should also be able to learn to use any data analysis add-ons the company needs to use. The Analysis ToolPak is a common one.
Your Accountants Need These Excel Skills
Knowing the specific Excel skills accountants must-have can help you make a more informed hiring choice. Do know that this list isn’t comprehensive. So, consider comparing Excel’s capabilities against your business’s daily needs.
If you find a good candidate who needs some extra help with Excel, you can consider providing the training. Since the accounting field and Excel software do change, consider providing some ongoing Excel training to keep your employees informed.
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