What is a Financial Spreadsheet

A Financial spreadsheet is a useful tool which helps businesses when preparing financial plans or reviewing financial information. It is one of the most commonly used aid, mostly by companies, business executives, finance professionals, investors, entrepreneurs, etc. Spreadsheets are also useful in business management, representing as a well-structured report for decision making.

It is a fact that with today’s technology, creating financial spreadsheets has become easier and more efficient. It also brought about a great change on how businesses handle the information that they gathered.  The most used tool for creating financial spreadsheets is Excel. Since it has features that works best in building the spreadsheet, making a financial information report has become a great boon, especially for those working in the accounting department. 

Usually, the functions in a financial spreadsheet are user-friendly and convenient, as it can process large amounts of data, e.g. calculating numerous figures, multiple sheets, linking, etc. Thus, saving time and avoiding mathematical errors. It can also process almost all accounting functions such as budgets, depreciation schedules, financial statements, etc., which can be really useful when conducting a business analysis. 

Using the financial information in a financial spreadsheet, business analyzing will become a simple process since all the information needed to be checked are already laid out in a structured report that’s easy to understand. Saving countless hours of numerous researching and multiple calculations. That’s why using financial spreadsheets has become a standard when creating reports for different uses, especially ones that involves financing.

Another great use of financial spreadsheets is when building financial models. It makes the task of financial modeling more efficient and easier to use by different levels of users – beginner or advanced. To see examples of financial spreadsheets incorporated in financial models, you can check out eFinancialModels, a platform which offers industry specific financial model templates made by experienced financial modeling experts.

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