Presentation on theme: "Business Planning using Spreasheets-2 1 BP-2: Good Spreadsheet Practice There is always the temptation to rush in and start entering data. However."— Presentation transcript:
Business Planning using Spreasheets-2 1 BP-2: Good Spreadsheet Practice There is always the temptation to rush in and start entering data. However - you should pause for thought, think about the purpose of the spreadsheet and how you can apply good spreadsheet practice. Good spreadsheet style should be clear and effective. To be clear a spreadsheet must record and communicate information that is accurate and unambiguous. To be effective a spreadsheet must work for its intended purpose.
Business Planning using Spreasheets-2 2 Basic Guidelines 1 The consistent use of good worksheet style will help you to build reliable, error-free worksheets: Planning starts with purpose. Think about the purpose of the worksheet… Document the essential facts about the worksheet, and use cell comments to explain values or formulas Keep formulas simple
Business Planning using Spreasheets-2 3 Documentation Cell Comments: used to specify information about cell contents and formulas. This ensures that the user of your worksheet(s), will be able to understand how certain results were obtained and how the worksheet functions. Headers and Footers: used to add document your worksheets, so that the user knows who created the worksheet, when it was created/last modified
Business Planning using Spreasheets-2 4 Basic Guidelines 2 Enter variable data in a named cell so they are easy to update without changing the formula Named ranges, if used sparingly, can significantly improve worksheet readability
Business Planning using Spreasheets-2 5 Named Cells and Ranges 1 Names are much easier to remember than cell addresses and much better in terms of maintaining your worksheet. You can assign a name to any cell or block of cells and then use that name instead of the cell/block co-ordinates.
Business Planning using Spreasheets-2 6 Named Cells and Ranges 2 Referencing cell/block names instead of cell addresses in a formula can make the formula much easier to read and to understand, particularly if the worksheet is to be used by someone else. Red_Price is more meaningful than $B$5 Has advantage that if you move the contents of a named cell/block elsewhere in the worksheet, Excel still associates the name with the same data, regardless of the new cell address(es).
Business Planning using Spreasheets-2 7 Basic Guidelines 3 Carefully select chart type and visual features to show trends, comparisons and contrasts which make the most effective use of your worksheet data Use block designs to help you to organise where to put the data and to remember where to find it
Business Planning using Spreasheets-2 8 Block Designs 1 Good worksheet style involves gathering the different types of information together into blocks, e.g.: Data Input Calculation Data Output Each block should have a specific purpose in the worksheet
Business Planning using Spreasheets-2 9 Block Designs 2 Most worksheets can be divided into four basic blocks: 1. Documentation block. 2. Input block, contains values that are used in formulas. 3. Calculation block, is the main working block of the worksheet and includes fixed data and formulas. 4. Output block shows the results of the calculations.
Business Planning using Spreasheets-2 10 Block Designs 3 – Cash Flow A possible block layout for a cash flow statement is shown below: 1. Documentation block: Title, purpose 2. Input block: Sales/Revenue, Cost of Sales/Business Expenses 3. Calculation block: Total Sales/Revenue, Total Costs 4. Output block: Closing Bank Balance Opening Bank Balance
Business Planning using Spreasheets-2 11 Basic Guidelines 4 Use multiple or linked worksheets to manage related data stored on separate worksheets Apply the decision making power of worksheets by appropriate use of the IF, CHOOSE and LOOKUP functions Automate repetitive tasks with macros to save time and increase accuracy
Business Planning using Spreasheets-2 12 Basic Guidelines 5 Learn a few error-checking techniques and routinely build them into your formulas Build-in password protection to avoid unauthorised modifications Be Accurate Be Readable Be Consistent
Business Planning using Spreasheets-2 13 Password Protect Your Spreadsheets 1 Normally you can change all the data in a workbook/worksheet at any time To prevent unintentional (or unauthorised) changes being made to your work you can protect it by using a password Excel allows you to protect entire workbooks, entire worksheets or selected cells
Business Planning using Spreasheets-2 14 Password Protect Your Worksheets 2 SECURITY Permits data entry in selected cells using Protection Password limits access to the workbook using a Write-Reservation Password allows the file to be opened as a Read-Only file, meaning it cannot be changed unless the correct password is entered (changes are possible but you cannot Save the file)
Business Planning using Spreasheets-2 15 BP – Session 2 Hands-on 7 & 8: Good Worksheet Practice Hands-on 9: Sales Trends, Transposing Data. Hands-on-10: Company Annual Report and Accounts. Trends in financial data.