Uses of spreadsheets in a business organization come in handy. Typically, spreadsheets are meant to store data sets, however, they have been helpful in so many different ways such as providing a wide range of utilities to aid in management. That makes them one of the most useful tools in a business organization. Spreadsheets perform organizational, financial, mathematical and statistical transformations on sets of data.
Furthermore, the can be used in data representation in a unique and organized way hence aids in future planning decisions. Since businesses offer different services, they can customize their spreadsheets in order to suit their needs. Some spreadsheet programs are designed to work together with other programs such as presentation software and word processing.
Common uses of spreadsheets in business
1. Storing Data
One of the main uses of spreadsheets in business is storing data. If you have a business organization, you will need a spreadsheet to store almost any type of information. Examples of information to the store include a list of clients, contact information, employee timesheets, sales, and purchases. All this information remains relevant and useful for many years. Since spreadsheets consume very little space you can save a lot of information without facing any storage difficulties. Searching for information on a spreadsheet is easy. You can search using a file name or the data that it contains.
2. Manipulate and analyze data
Apart from storage, you can use spreadsheets to manipulate and analyze data. For example, it contains a feature that allows you to enter custom formulas. You can use them to perform different functions such as addition, subtraction or calculating percentage. In addition, these formulae sets can allow you to sort your data. Additionally, you can customize it by adding filters until you get the results that you desire. Spreadsheets also hold a feature that provides conditional processing. Using formulas you can make one cell to be dependent on the results of another cell. This is a helpful feature for calculating profit and losses.
Spreadsheets are used often for visualization purposes. They contain different tools and features that make it possible. For example, you can present your data in charts or graphs. There are various types of these charts and graphs to choose from according to your needs. Managers can present data in a graphical way to potential investors making it easy for them to grasp the information. The presentations can also be used to teach clients or show employees on how the business is performing. You can control anything that you want to display from the colors or table sizes.
4. Modeling and Planning
Spreadsheets play a huge role when it comes to planning. You can use them in two ways. First is by analyzing and visualizing data hence getting a clue of how your business is doing in various fields. Next, you can highlight areas that need more attention to growth or reconsideration. The second way to use spreadsheets in planning is by calculating the potential results due to changes in your company. You can test various forms of data and determine if it works or not.
5. Inform the Decision Making Process
Decisions that a business makes determines whether it will be successful or not. Spreadsheets help managers and investors to make well-informed decisions. Through data visualization, management can easily identify the areas of weaknesses. Having this information at hand all the time it will lead the manager into making decisions that can make more profits. With well-represented data, potential investors will have a humble time when deciding whether to invest in your business or not
6. Business Accounts and Budgeting
Coming up with a budget is not an easy task without the use of spreadsheets. You can create a table and list the most important things followed by the least important. There are features that will show you the sectors that need the most attention. This information is very important, especially when purchasing items. Spreadsheets also assist accountants in managing business accounts. So funds are released easily because some calculations are automated.
Most spreadsheet platforms will allow you to integrate the invoice template. It speeds up the process of receiving or dispatching products. The invoice template can easily fetch data from the spreadsheet hence making the whole process automated. In addition, it produces very accurate results. Handling invoices manually or with other external applications is a slow process. The production of invoices for customers’ needs to be fast and accurate so as to realize more profits. Customers are very sensitive and can easily be turned off by a slow process or one with a lot of errors.
Managing wages is now easy thanks to the spreadsheets. You can set up a formula that automatically calculates the number of hours an individual employee has worked. It makes payment of wages a fast and easy task hence you get to work with happy employees. It also cuts the costs of paying employees extra money that they have not worked for. However, it makes them work hard because they know that they will get paid what they deserve. Furthermore, it also cuts the costs of using any external software to handle the wages.
9. Predictions / Simulations
Spreadsheets are important in simulation and prediction in business organizations. Because organizations store all financial data in the spreadsheets they can easily predict the form in which the business will be in the next few years. Visualization tools such as graphs and tables make the predictions easy. For example, if a business wants to know the average number of customers they will have by increasing employees they just need to check the graph.
10. Statistical analysis and reports
By the use of spreadsheets, business organizations are able to carry out analysis easily and first. For example, they use formulas that calculate all the data for the whole financial year. Making these calculations manually is a very tiresome process. The reports show how the company is progressing. It can also be released to attract potential investors and customers to the company. Spreadsheets are the best platforms for organizations to manage and store data.