Sidonie Hawa February 19, 2021 Spreadsheet
Finding your way around and identifying the various elements of your spreadsheet document will help you navigate around it more easily and use it more effectively. Most elements are the same for all spreadsheet programs but they look quite complicated. But once you understand how they work and how to find your way around them, they are easy to use. To understand from the start you have to know it is a grid of cells. The columns are like the columns in a ledger. You can use them to make lists of figures and perform calculations. Each column is identified by a letter of the alphabet and each row by a number.
A further small complication might be if at the discretion of the small business owner additional information was required from the bookkeeping records to indicate the totals of the different types of products and services then additional columns could be incorporated to enter the net sales figures in these columns. There it is then, a simple list of sales invoices to satisfy the sales accounting requirements for a small business where a balance sheet is not required.
Managing the household finances is made a lot easier when you use a spreadsheet. When using a spreadsheet program for budgeting, you need to use formulas in calculating all the totals. That way, you make the process much faster because you will not have to get the totals manually using a calculator. This also prevents inaccurate computations on your budget.
The fourth component to look for in a real estate investment spreadsheet is the ability to input growth rates. Instead of manually keying in different numbers, say for utility costs or rental rates, simply changing a periodic growth rate is much faster and easier. Most good investment models will allow the user to change the important input factors via growth rate variables. This substantially reduces the time to analyze different scenarios and allows the spreadsheet model to be semi‐automated.
A software that can compare file in an organized manner can help you be a more productive employee at work. To tally and keep records of any financial data from any institution one has to make use of an application that can easily convert data entered into reports after comparing them with similar records already on file. With the use of Microsoft Excel, one can accomplish this. However, if you want to make use of your time effectively and be able to do other tasks aside from all the paper work, there is an available file comparison software that you can take advantage of to make things easier for you.
Finally, when applying discount factors, where do you intend to get your discount numbers? For a company with existing debt and equity capital you can calculate WACC and use that. For a startup company you need to figure out a risk‐adjusted cost of capital that makes sense. Usually this is not just a risk‐free rate which only the largest companies in the world have access to. It‘s probably something higher.