FINANCIAL ANALYSIS - OPEN SOURCE
To evaluate the financial performance of any business organization, financial analysis is the key. It involves the assessment of budgets, projects, books of accounts leading to solvency, liquidity, turnover and profitability of a business concern.
Analysis of financial reports is a crucial prospect for students who wish to pursue their career in the area of finance.
Microsoft Excel is one of the best and free source of financial analysis which is easily accessible to every management student. There are various tools used by researchers and analysts to do financial analysis.
Advanced excel. RDIAS being the best management college in Delhi provides training of advanced excel and financial modelling to make students more competitive and higher skilled. Microsoft excel has certain features which can solve various financial problems with in just a few clicks. It provides several formulas like calculation of interest payment, equal monthly installment, average, standard deviation, correlation, regression.
It is one of the popular tools which improves the productivity and makes complex calculations easy. Mentioned below are advantages of having good knowledge of Microsoft excel:
- Employability Benefits: In this technological era, employers look for the resumes that have special skills and trainings specified in the skills section of the resume. If a candidate has added Excel skills to the resume, then it increases the probability of getting hired by the employer. Today, many companies totally rely on Microsoft Excel and other Microsoft Office program for every activity; from business communication, data management, calculation and data analyzing to data tracking and storage.
- Improves both Employers and Employees: One must understand that Excel is not just about the data entry, it is beyond that. It provides you the ability to envision and control or manipulate the data. It helps you solving business issues on time by utilizing your advanced skills in Excel. Advance skills in Excel enable you to form a complex equation. Employee can change the workplace or company and use the same “language”.
- Increases Employee Value: In today’s competitive world, everyone looks for a satisfactorily job and one of the biggest priorities of an employer is an employee retention. Employee satisfaction is the key to employee retention, that is dependent on the amount of training employer provides to its employee. Excel enables you to complete the work speedily, efficiently and increase the productivity, which makes both employer and employee happy.
- Data Formatting: This is one of the best features of Excel. It is not easy to trace crucial data in the large spreadsheet and larger spreadsheet makes it difficult to examine data sets. However, this can be done more easily and quickly by using Excel Spreadsheet. After collecting all the necessary data in the spreadsheet one can examine and process the data at any time. Features like colors and bold text helps you differentiate the data by highlighting the crucial data. Formatting and other features in Excel let you process the data and information easier and quicker.
- Excel Increases Job Satisfaction: Traditional way of managing workload and reports can take so much of time to complete and you may end up behind the scheduled time. This may lead to employee leave the organization as it is not easy for employee to manage such workload traditionally also, it may create difficult for an employee to manage both professional and personal life. Using Excel skill and training can make employees happier as employee can complete and manage the workload much easily and happily. A study found that happy employees are 20% more productive and if employer wants to increase the productivity , then employer must start using the Excel. Advance Excel skill and training can make employer and employee happier and more productive and efficient at work.
- Excel can Handle the Data Efficiently: Data is very important for business whether it is small or a local and it is processed and collected on daily business activities. It has a biggest impact on business. Big project such as data entry and data analysis can take much more time and efforts if opted for traditional way of management. However, this can be done easily through Excel. The more your business grow more data to be gathered, controlled, and processed therefore, Excel plays vital role to help your business manage, analyze, and grow incredibly.
- Use Excel to Grow a Business: Anyone having expertise in advance Excel skill can teach others use of Excel to the fullest. Popularity of Excel is very common however, only some are expert user therefore, if you want you can create a business out of it by offering another business on how they can save both money and time by using Excel.
- Excel is used worldwide: As we know Excel is a powerful data analysis tool and there is no other program fairly like Microsoft Excel. It is playing a significant role for many businesses in the world. World is more leaning towards the advanced technology and hence, changes the business requirements as well. Depending on the technological advancement and requirement, Excel Spreadsheet is also provided with recent upgrades adding the specifications like filtering, sorting, and searching tool etc.
Excel will continue to be around for many years to come. Since, there is no alternative program having similar efficiency and features and this is the reason why Excel is such a powerful application till date, and it is unrivaled in the market. Excel is very reliable and efficient and has value to varieties of business. Also, it is continuously evolving no matter how much the technology has changed. This is going to be the best spreadsheet program for many years to come.
Ms. Shikha Dua
Assistant Professor, RDIAS