Accounting is very famous and dynamic area in the market for business level people, government agencies, students, international monetary relationships and housewives. It is used to handle and analyze the numbers, create and manage business transactions in deal with accounting. An excel document comprises of cells which looks like grids. Each is identified by its position in the row and column. Columns are identified by letters and rows are identifies by numbers. For example Cell A12 means it is located in the row A, in 12th column. When you enter different numbers in the cells you will be given choice for performing different calculations on those numbers and the answer will be appear in the cell where you have inserted the calculation formulas.
Let us see how to perform accounting using different examples.
How to get total expense for whole year? So for that, first insert month and year in column1. If you type month and year, the excel program will automatically abbreviate. E.g. “June 2010” will be abbreviated to “Jun-10”. After the dates, type the expenses amount for each month. To get the total of this entire amount, select all the columns then you can see total of the values in the status bar. If you want to display the total in any cell then type “=SUM (“and select all the cells where the monthly expense amount is entered, then close the bracket “)”. It will look like “=SUM (B1:B4)” and in the same cell it will display the total yearly expense. Instead of selecting the cell values you can type the cell names directly the sum formula as “=B1+B4”. This tells the program to add together whatever numbers are there in the cell B1 and B4. If you want to add some random data then you can type this formula directly in the cell, and you will get the answer in the same cell.
If you want to find your saving, then you can deduct total expenses from the total Income. For example once you got total yearly expense in the next cell type formula for deduction like “=522000-B5” and you will get your saving amount for that year. In this way you can prepare a excel sheet for showing your different monthly expenses and can get a detail sheet showing all the expense details. If you want to find ratio of income to expenses then let us consider in the cell B5 total yearly expenses are there and in the cell B6 total yearly income is displayed. Use formula =”B6/B5” to get the ratio of the income to expense in the cell where you have typed the formula. For getting average of all the monthly expenses type formula “=Average (B1:B4)” and it will give average yearly expense. If you are changing any of the amounts in the cells which are included in the formula then total will be reflected immediately to give the correct amount.
Similarly you can perform many accounting operations using different formulas Accounting can be used either at your business for calculating expenses and sales of items, for managing salary structure of the employees, to handle certain statistical data and at your home to handle expenses detail as explained above.