1. NACM Excel Presentation Jon Paul President, Value Added Finance Resources 847 372-1963 jon@valueaddedfinance.com www.valueaddedfinance.com www.excel-erate.biz

2. Case History Telecom Client Aggressive Launch Explosive Sales Growth- $50 Million Rate Realized Bad Debt Problem Running 15% of Sales Turned Out- Really Running 55% of Sales

3. Case History- End Result Within One Year Down to 5% Company Became Profitable Stock Climbed from Low of 1.50 to over 60 Sold to Larger Competitor Employees Did Very Well In 401k Accounts

4. Case History- Action Items Cut Off Non Paying Accounts Set Up Prepaid Program For Poorest Credits Added Credit Scoring Tightened Credit Policies Stronger Collection Efforts

5. Case History- Role of Excel Identify Higher Amount of Bad Debts Capture and Monitor Collection History Identify Soft Spots in Collections Predict Future Collections Analyze Credit Scoring Communicate and Celebrate Success

6. Agenda Case History Uses of Excel in Credit Management Excel Tips Resources For Further Study Other Questions

7. Objectives See New Ways You Can Use Excel Pick Up Pointers on Excel Show Ways You Can Learn More Answer Questions During and Afterwards

8. Uses of Excel in Credit Management Rolodex Financial Analysis Database Reporting

9. Rolodex Account Lists Call Scheduling Call Tracking

10. Financial Analysis Bad Debt History Aging Credit Analysis Collection History

11. Bad Debt History Determine Bad Debt Rate Key- Matching Proper Periods Pull Back Bad Debts to Initial Revenue

12. Bad Debt History Example JanFebMarAprMayJunTotal Before Matching Sales 500 1,200 2,000 3,000 4,200 5,500 16,400 Bad Debts 20 60 245 378 615 825 2,143 Bad Debt %4.0%5.0%12.3%12.6%14.6%15.0%13.1% After Matching Sales 500 1,200 2,000 3,000 4,200 5,500 16,400 Bad Debts 230 615 1,095 203 2,143 Bad Debt %46.0%51.3%54.8%6.8%0.0% 13.1% Bad Debts Proj 230 615 1,095 1,650 2,310 3,025 8,925 Bad Debts Proj %46.0%51.3%54.8%55.0% 54.4%

13. Aging Flaws Looks Back Matches Different Time Periods Skewed When Sales Grow or Fall Not as Predictive

14. AR Aging- Growth Can Skew AR Aging Current 0-30 31-60 61-90 Over 90 Total Jan 395 190 121 73 69 847 Feb 960 316 161 109 138 1,684 Mar 1,640 797 269 145 241 3,092 AR Aging % Current 0-30 31-60 61-90 Over 90 Total Jan46.6%22.4%14.3%8.6%8.1%100.0% Feb57.0%18.8%9.6%6.5%8.2%100.0% Mar53.0%25.8%8.7%4.7%7.8%100.0%

15. Alternative- Collection History Set Up 30 Day Buckets Track Collections During Each Bucket Analyze % Collected At Each Stage

16. Benefits- Collection History Approach Know What You Collect In Each Bucket Predict Future Bad Debts Identify Soft Spots In Efforts Red Flag Downtrends Early Set Targets For Improvement

17. Finding Soft Spots - Football Analogy 0-30 Days- First Down 31-60 Days- Second Down 61-90 Days- Third Down Over 90- Goal Line Stand What is Relatively Soft in Collections Almost Every Company Has a Soft Spot

18. Key to Success- Collection History Get Started Set Up 30 Day Buckets Consistent Cutoffs Break Down Into Groups Set Targets Measure Against Targets

19. Collection History Report Collected Current 0-30 31-60 61-90 Over 90 Collected Bad Debts Jan Sales 105 79 47 27 12 270 230 Feb Sales 240 163 104 55 22 585 615 Mar Sales 360 256 166 91 32 905 1,095 % Collect Current 0-30 31-60 61-90 Over 90 Collected Bad Debts Jan Sales21.0%15.8%9.5%5.4%2.4%54.1%46.0% Feb Sales20.0%13.6%8.6%4.6%1.9%48.7%51.3% Mar Sales18.0%12.8%8.3%4.6%1.6%45.2%54.8% % Avail Current 0-30 31-60 61-90 Over 90 Collected Bad Debts Jan Sales21.0%20.0%15.0%10.0%5.0%54.1%46.0% Feb Sales20.0%17.0%13.0%8.0%3.5%48.7%51.3% Mar Sales18.0%15.6%12.0%7.5%2.8%45.2%54.8%

20. Collection History Chart

21. % Available Collected

22. Database Steps Determine Data Availability Where to Keep Data Clean Up Data Perform Calculations Group Data Analyze Data Summarize Results Automate Process

23. Data Availability What Data Do You Want What Data is Available How Large is Dataset How Many Different Sources What Frequency of Data

24. Where to Keep Data Number of Records –Excel Now- 65,536 row limit –Excel 2007- 1,000,000 rows Alternatives –Excel –Database- Tie With Excel –Summary Information- External Tool- OLAP

25. Clean Up Data Converting Text to Numbers Splitting Data Correcting Data Filling In Missing Data

26. Adding Calculated Fields Dates- number of days Sums- total collected Ratios- % of bad debts

27. Adding Group Fields- Examples Date- week month year Territory Customer Group Product Line Credit Score

28. Analyze Data Pivot Tables Pivot Charts Lookups- multiple tables

29. Summarize Data Spreadsheet Pivot Table Charts Pivot Charts Dashboards

30. Excel Skills Broken Down Into Areas Time Wont Allow Us to Cover All See Appendix for more complete list Resource- www.excel-erate.biz Online Lessons www.excel-erate.biz/excel/excel_index_alpha.htm Use to Test / Enhance Your Skills Same For Staff or Potential Hires

31. General Saving Backup Copy of File File Menu Save As Click on Tools Select General Options Check – Always Save Backup Can Use Same Process to Password Protect

32. Backup Copy Dialog Box

33. Navigation Go To Special Click F5 Key Click Special at Bottom of Dialog Box Select Where You Want to Go Wide Range of Choices

34. Go To Special Dialog Box

35. Cut and Paste Two Not Well Known Shortcuts Ctrl + D = copy down –Copies row above down to next row Ctrl + R = copy right –Copies column at left to next column

36. Manipulation Paste Special Values Suppose You Had to Increase Forecast 5% Put in 1.05 in blank cell and copy Select cells with forecast to be increased Select paste special values Select values and multiply

37. Manipulation Example

38. Formatting Paintbrush Handy Formatting Button in System Toolbar Use to Copy Format to Another Section Highlight Format You Like Click or Double-Click Paintbrush Move Paintbrush Over Sections to Reformat

39. Paintbrush Example

40. Printing Multiple Page Setup Use to Set Up Print Format of Multiple Sheets Or Set Up Print Format of New Sheet Select Sheet With Print Format You Like Select Remainder of Sheets (Shift or Ctrl Key) Select File, then Page Setup Click OK

41. Charts- Views Same Sheet- Multiple Charts Create new blank chart sheet- click on a blank cell and click F11 to create new chart Create each chart – locate in this new blank chart sheet Go to the chart sheet - click Size with Window Adjust the size and scaling of the individual charts as needed

42. Multiple Charts- Same Sheet

43. Charts- Formatting Secondary Axis Add Data For Secondary Axis Multiply If Needed to Show- Such as % Chart- Click on Data- Format Data Series Click on Axis- Change to Secondary Change Chart Type to Line Reformat Line Shrink Number Back to Original Size if Needed

44. Secondary Axis Screen

45. Charts- Formulas Chart Gaps- When Gap In Data Tools menu Select Options Click Chart Tab Make Selection –Not plotted- leave gap –Zero –Interpolate- fill in gap

46. Chart Gap Fix Options

47. Charts- Special Types Scatter

48. Formulas- General Techniques Labels in Formulas Create Formulas Based on Row or Column Headings Setup- Go to Tools, Options, Calculation tab Select Accept Labels in Formulas Can Create Faster Formulas Intuitive for User to Follow

49. Labels in Formulas- Setup

50. Labels in Formula- Example

51. Sums Sum – non-adjacent cells Fast way to create these Begin formula- =Sum( Click on first cell Hold down shift key Click on remainder of cells

52. Rounding Round Function Use to round to certain number of decimals First part- calculation being performed Second part- number of decimals –Can do in reverse- such as -3 for thousands Example =Round(sum(b3:b20),-3)

53. Averages Weighted Average Fast Way to Calculate Start a sum formula Multiply two parts Finish the sum Add the denominator Finish- Ctrl + Shift + Enter key {= SUM(B2:B6*C2:C6)/B7}

54. Weighted Average

55. If Statements- Conditional Formulas Fundamental IF Statement Parts- Condition, Value if true, Value if false = if (D5=0,0,b5/c5) Can use text- = if (D5>.05,Review,) Can use multiple conditions- And, Or –=if(And(D5>.05,C5>1000000),.06,.03) Can nest- to test for condition within condition

56. Error Trapping ISERROR, ISNA Other ways to catch broader range of errors ISNA very useful for lookup errors when new values added that dont match Example- =if(ISERROR(b5/c5),0,b5/c5)

57. Text Concatenate Use to combine text into one cell =Concatenate(text1 or cell1, text2 or cell2, etc.) Can use both text and cell references =CONCATENATE(A2," ",B2," ",C2 )

58. Concatenate Example

59. Date Use to set up date fields in lists Year- =year(C2) Month- =month(C2) Day of month- =day(C2) Weekday- =weekday(C2,1) –Second variable is type –Can choose if week starts with Sunday or Monday

60. Named Ranges- Benefits More intuitive formulas Faster formula creation Easier to link between sheets and files Less likely to break links Use to navigate Faster consolidation

61. Named Ranges- Skills Manual Creation –Highlight row, column or range –Add in name in name box Pasting in Formulas –Start formula- such as + or = –Click F3 to pull up paste name box- select name Manually Adding in Formulas –Type in name in formula- such as +sales-cost_sales Navigation by Names –Click F5 – Go To dialog box- select name

62. Named Range Box

63. Named Ranges Formula Example

64. Lookups- Benefits Automatically Pull in Information Avoid Manual Re-Entry Quality Control Faster Formula Creation Make Global Changes

65. Lookups Basic Lookup formula –Lookup value- value you are trying to find Such as January –Lookup range- where you are trying to match Such as sales data –Column- what column has the value you want Such as the sales for the lookup value –Type of match- close or exact (false means exact) =VLOOKUP(F2,sales,2,FALSE)

66. Lookup Example Adding Product Name

67. Data Lists- Setting Up Continuous Data- No Blank Columns or Rows Add Index Field If Desired Column Headers- Unique Column Headers- One Row Fill In Blank Cells as Needed Add In Calculated Fields Set Up Named Range

68. Data Lists- Viewing Basic Auto Filter Data menu, filter, then auto filter Drop down arrows will be put at top of list Can use to select parts of list Can select on values in list, top 10 or custom Can filter on multiple fields Select all to return back to viewing entire list

69. Data Filter Example

70. Pivot Tables- Benefits Query data without a database Summarize results from large datasets Quickly build reports Change reports by pivoting fields Change views using drop-down lists Drill down to details

71. Pivot Table Fundamentals Pivot Table Setup –Data menu, then Pivot Table –Select type of data, then data range –Layout screen Drag in rows and column fields for report Drag in data fields Drag in page fields if desired –Finalize- select location for table

72. Pivot Table Fundamentals II Pivoting Fields –Drag to row, column or page headers Narrowing selections –Using drop-down boxes Group selections –Primarily dates Drill Down to Detail –Double click on data cell in pivot table

73. Pivot Table Result

74. Pivot Charts Creating Charts –Create automatically from pivot table Pivoting –Drag like you do with the pivot table –Note that chart change will affect table Drop Down Lists –Similar to pivot table

75. Pivot Chart Example

76. Simulations Data Tables- 2 Variables One calculation based on two variables One variable across, one variable down Sample calculation in upper left of table Sample values above the table Close with Ctrl + Shift + Enter {=TABLE(B5,B4)}

77. Data Table- 2 Variable

78. Macros- VBA- Benefits Automate Repetitive Tasks Data Cleanup Perform More Complex Calculations Streamline Navigation, Printing Faster Calculations, Setup

79. Macros- VBA- Basics Syntax- Name Object, then Action –If someone threw ball to you- Ball, Throw Creating- Macro Recorder –Simplest way to start –Example- record print settings Linking Macros- Menu or Buttons

80. Other Resources Excel-erate- www.excel-erate.biz John Walkenbach books Bill Jelen- Mr Excel- www.MrExcel.com Excel User newsletter- www.ExcelUser.com/Biz/ Inside Microsoft.com- www.elijournals.com

81. Questions- Contact Us Jon Paul, President Value Added Finance Resources 847 372-1963 jon@valueaddedfinance.com www.valueaddedfinance.com www.excel-erate.biz