Harness The Power of Excel 04 – The full story from Excel

I'm here (slightly later this month) to present my fourth article in my role as Expert Excel Tamer Paula Turk.

A more intriguing topic this month and here we answer the question of whether you are getting the full story from Excel. We cover off the huge flexibility that is within Excel, and how it integrates with Accounting Systems, Financial Reporting and the data that underlies it all.

INTRODUCTION

Excel is an invaluable tool for creating summaries of financial data which allow the CEO and CFO to drive company strategy. These summaries need to be based on accurate data and calculations which can readily be validated. Excel's strength is in the variety and depth of reporting it can deliver - especially its highly visual charts and graphs.

What Excel isn’t telling you

You only get a fraction of the data from the financial systems that underpin the Excel reporting.

Most presenters do not understand what financial systems data lies behind the visually appealing output pages contained within the executive summaries.

Getting to the truth

In short, high-level summaries are essential. Most accounting systems do not have the visual power of Excel, and they certainly do not have the flexibility that Excel allows in grouping and re-grouping data to aid clearer messaging.

There will always be an agreed point – and usually this has evolved over time – where the CEO and CFO know that the systems inputs and Excel outputs are aligned.

It is easy to demonstrate consistency between the accounting system and the reports by considering that if the CEO were to sit next to the head of finance, the key accounting headlines would leap out at them both.

It’s a trade-off – time versus accuracy

A great Excel expert ensures that there are so many built-in, BACKGROUND checks and balances that the accounting controls are replicated within Excel models.

The very worst practice is to perform a calculation completely outside of Excel (say by using a calculator, or a piece of paper) and just typing that in, with no remark as to how it was calculated.

ENSURING EXCEL TELLS ALL

• What is agreed and accepted accounting practice can also be performed in Excel. Just ensure it is done in the same controlled and understandable way as in your accounting system.
• Charts easily allow senior managers and executives to draw conclusions and to question specific movements of costs and revenues and profits.

EXCEL OUTPUT PROCESSES

1. Excel has greater flexibility to group headings and to create new groupings than your financial accounting systems.
2. Use the flexibility of Excel for reporting, while ensuring data integrity is maintained.
3. The reason companies continue to use Excel is its huge flexibility. Just ensure that there are checks and balances to ensure the totals between the finance system and Excel always agree.

CONCLUSION

The start point of reporting is ALWAYS the core transactions held in your accounting system. Make sure that your Excel reporting agrees with this output.

Streamline your methods that generate the Executive summary and get back control of your financial decision making process.

𝗪𝗵𝘆 𝘆𝗼𝘂 𝗻𝗲𝗲𝗱 𝘁𝗼 𝗿𝗲𝗮𝗰𝗵 𝗼𝘂𝘁 𝘁𝗼 𝗣𝗮𝘂𝗹𝗮 𝗧𝘂𝗿𝗸

𝗘𝘅𝗰𝗲𝗹 𝗘𝘅𝗽𝗲𝗿𝘁 𝗮𝗻𝗱 𝗗𝗮𝘁𝗮 𝗤𝘂𝗲𝗲𝗻

1. Whether you run a large private or public enterprise, or operate in a small start-up, you can optimize your use of Excel.  By using the tips provided in this series, I will save you time and save you money, plus reduce team frustration. All of which all leads to vastly increased profits.
2. Ask how I can help your team to introduce best practices from the ground up, create better reports and models, reduce the dangers of data misunderstandings, and generate huge savings of both time and money.
3. With a love of maths, maths, maths, and more maths I'm always keen to get my head around your numbers and understand your data. Plus, I'm extrovert too - very much the talk of the office and a great team-mate. Great for building up inter-departmental synergies.

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